SEARS OBTAINS $400M LOAN FROM EDWARD LAMPERT: Entities affiliated with Sears Holdings Corp. have entered into a short-term loan for $400 million from affiliates of ESL Investments Inc., of which Sears’ chairman and chief executive officer, Edward S. Lampert, is the sole stockholder. According to a regulatory filing with the Securities and Exchange Commission, the first $200 million was funded on Monday, and the second $200 million is expected to be funded on Sept. 30. The loan, which has an annual base interest rate of 5 percent, is set to mature on Dec. 31, but can be extended until Feb. 28 under certain conditions.
The company said it plans to use the proceeds for general corporate purposes.
The filing said the loan is guaranteed by Sears and secured by a first-priority lien on 25 real estate properties owned by Sears. The filing also said that in “certain circumstances,” ESL as lender may exercise its “reasonable determination to substitute one or more of the properties with substitute properties.” In addition, in the event of a default, such as a bankruptcy proceeding, the lender may declare all or any portion of the indebtedness to be immediately due and payable.