Embattled retailer Sears (SHLD) has completed refinancing that will save the company approximately $15 million in quarterly cash interest expenses, part of the company’s plans to cut costs.
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The company reported in January that it would raise $100 million in new financing, seek twice that amount from other sources and would attempt to cut costs by an additional $200 million this year. Sears noted that if it had been unable to complete these measures the board would have to consider all other options to maximize the value of its assets.
Commenting on the refinancing, Edward S. Lampbert, the company’s CEO stated, "The completion of these previously announced transactions will strengthen our financial footing as we continue to execute on our strategic transformation.”
In their latest quarterly results, for the fourth quarter of 2017, Sears earned $182 million ($1.69 per diluted share) which included a non-cash tax benefit of approximately $470 million related to tax reform. This compared to a net loss of $607 million or $5.67 per diluted share in the fourth quarter of 2016. The prior year quarter result included a non-cash accounting charge of $381 million related to the impairment of the Sears trade name.