Sears Holdings Corp. said Friday that it increased the borrowing amount on its domestic revolving credit facility to $3.275 billion from $2.441 billion.
The maturity date is also extended to April 7, 2016, from June 12, 2012. The facility also has a lower interest rates and the fee the lender charges Sears for holding available credit was reduced.
The credit facility retains its accordion feature that allows Sears to use existing collateral to get up to $1 billion more in borrowing capacity. The facility is backed by the retailer’s domestic inventory and money it is owed from its pharmacy and credit card division.
The transaction was led by BofA Merrill Lynch, Wells Fargo Capital Finance LLC and GE Capital Markets, as lead arrangers and book runners. They committed $1.2 billion.
Bank of America will serve as the administrative agent for the facility.
