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Sears borrows additional $186M from loan facility

Sears Holdings Corp. amended a loan agreement dated Oct. 8, 2017, to borrow an additional $186 million under its term loan facility, according to an SEC filing dated June 4.

The lenders under the amended credit agreement are JPP LLC, JPP II LLC and Cascade Investment LLC. JPP and JPP II are controlled by Sears Chairman and CEO Edward Lampert's hedge fund, ESL Investments Inc.

Approximately $593 million in loans were outstanding under the existing loan agreement prior to the additional borrowings of $186 million, which brings the total amount of the outstanding loan to $779 million.

Under the amended agreement, the loan will mature on July 20, 2020.

Sears used the proceeds of the borrowing to repay all the loans under its real estate loan facility dated May 22, 2017, and terminated the agreement after. The mortgages on 13 properties were released and these were pledged as collateral for the amended credit agreement.

According to the filing, $93 million of the loan under the amended loan agreement is structured as a "first out" tranche and bears interest at London Interbank Offered Rate plus 6.50% per year. The remainder of the loan bears interest at LIBOR plus 9.00% per year.