$300 Million Term Loan to Sears Holdings

September 12, 2016

Cleary Gottlieb is representing ESL Investments and Eddie Lampert in a $300 million second-lien term loan to Sears Holdings.

The loan is secured by inventory and receivables owned by Sears and is due to mature in 2020. The credit agreement includes an accordion feature that allows Sears to obtain up to an additional $200 million of additional loans from third parties under the same documentation. 

Eddie Lampert is the Chairman and CEO of Sears and its largest shareholder. He also manages a hedge fund, ESL Investments, which he started in 1988.