Sears Holdings Corp. said it plans to commence exchange offers for certain notes to enhance the company’s liquidity.Based on the disclosed terms for the discussions, the exchange would enhance Sears’ liquidity by changing the form of the interest payment from cash to payment-in-kind.One planned exchange converts the 8 percent Senior Unsecured Notes due 2019 to one that has an option for convertibility into the common stock of Sears, with interest on the notes to be payable in kind at the company’s option. The other exchange is for 6-5/8 percent senior secured notes due 2018 to new notes due 2019, also convertible into common shares of Sears, featuring the same PIK option. While both notes are would be optionally convertible by the holders, they would also be mandatorily convertible at the company’s option under certain conditions.Fitch Ratings, a credit ratings agency, downgraded Sears Holdings to “C” from “CC,” on what it called a distressed debt exchange. The downgrade follows a similar move by competing ratings agency S&P Global Ratings last week.Fitch also said that while the changes would result in annual cash interest savings of more than “$100 million, the contemplated exchanges wouldn’t materially change Fitch’s expectations for an annual cash burn of $1.2 billion." Sears earlier this month said it was in discussions with certain lenders to amend the terms on possibly more than $1 billion of its non-first-lien debt that would include the reduction of cash interest expense and the extension of the maturity of some of that debt.According to Fitch, those discussions could include an amendment of the $300 million second-lien term loan due 2020 that would allow for PIK interest and for the loan to be convertible to common stock, as well as the $95 million of senior unsecured SRAC notes due between 2027 and 2043. The discussion on SRAC notes could result in new unsecured notes maturing in March 2028 that would allow for PIK interest, according to the ratings firm.
"'Dynasty' is all about gowns, the diamonds and the scandal, so it's a bit like the fashion industry. When we come to Cannes it's all about the red carpet dresses too, so it all fit really well," said designer @philippplein78 on the theme of his high-glamour resort 2019 show at his mansion in Cannes. #wwdfashion #cannes (📷: @zefashioninsider)
"I think Spike is such a brilliant director because he holds up a mirror to society and reflects these issues, yet he doesn't shove it down your throat, he doesn't tell you what to think," says @lauraharrier on her latest film @Blackkklansman. Harrier was at the Cannes Film Festival – for the very first time – with @officialspikelee. #wwdeye #cannes (📷: @zefashioninsider)
“I would think to myself, Are you happy? Yes, I’m wildly happy. I go to this studio every day and, in my inside voices, I’m giggling; I’m singing. Yes, it’s a lot of work, it’s a [huge] volume of material. It wouldn’t be for everybody. But I was very happy,” said soap opera star @therealsusanlucci of checking in throughout the years with her career trajectory. Lucci spoke to WWD about her decades-long career, love for pilates, motherhood and her QVC activewear line. Read Bridget Foley’s full piece on Lucci on WWD.com #wwdfashion (📷: @celestesloman)
@balmain has taken a stand at the #cannes Film Festival, dressing 16 actresses at a press call for the project “Noire N’est Pas Mon Metier,” or “Black Is Not My Profession.” The multimedia project includes a book, photo exhibit and documentary, which aims to expose discrimination in the French and American entertainment industries. “The moment I was asked to participate, I knew it was right for me, and for this brand, to form a part of this moment,” Balmain creative director @olivier_rousteing told WWD. #wwdnews #wwdfashion
"I always feel curious and I feel like there's more to learn. But I think being relevant, feeling relevant, I personally always feel that there's just so much more to know. And maybe that's the key.” — @themarcjacobs #wwdsummits #wwdbeauty (📷: @patrickmacleodphoto )
“The most amazing thing about her is that, regardless of all the things that have happened to her, her spirit is so undaunted by all of it. She is the most cheerful person you will ever meet. She doesn’t see problems, she only sees solutions,” said @ajanaomi_king of activist Ifrah Ahmed, who she plays in a new film “A Girl from Mogadishu.” WWD caught up with King at Cannes — Head to WWD.com to read more about her new role, personal style and how she uses social media for causes like Time’s Up and Black Lives Matter #wwdeye
WWD asked a number designers to share their thoughts on what Meghan Markle’s wedding gown will look like this Saturday. Here, Valentino’s Pierpaolo Piccioli sketches his look. #wwdfashion #royalwedding #meghanmarkle