Sears Secures Second Credit Facility With Funds Run By CEO Eddie Lampert In a Week

Shares of Sears Holdings Corp. rose 1.1% in early trade Wednesday, after the retailer said it has entered a new credit facility with funds run by Chief Executive Eddie Lampert, its second such agreement in a week. Entities affiliated with Lampert's ESL Investments are offering the $500 million committed secured facility which matures in July 2020. The facility is secured by mortgages on 46 real properties owned by the company's subsidiaries and comes with an interest rate of 8% a year. "The loan facility is intended to provide the company with additional liquidity to fund its operations while it initiates a process to market and sell a portfolio of its real estate assets, the proceeds of which would primarily be used to repay outstanding indebtedness," Sears said in a statement. Last week, the company said it had secured a standby letter of credit facility for up to $200 million with funds owned by ESL Investments, that can be further expanded to up to $500 million if the lenders approve. Sears shares have fallen 50% in the last 12 months, while the S&P 500 has gained 12.5%.