Sears is seeking a term loan of $1 billion to pay down borrowings under a revolving credit line, Bloomberg reported. A meeting with lenders to discuss the loan, which would mature in June 2018, is scheduled for today.
The term loan would be issued under an existing credit pact that provides Sears with a $3.275 billion asset-based revolving credit line. The Hoffman Estates, IL-based company has about $1.1 billion available under the revolver, according to data compiled by Bloomberg.
Sears’s net loss in the three months ended August 3 widened to $194 million from a deficit of $132 million a year earlier as loyalty program members used more discounts and appliance sales fell, according to Bloomberg.