Sears in new debt move
Sears Holdings Corp. is cutting its quarterly interest costs by $15 million.
The struggling retailer said Wednesday it has completed its previously announced private offers to exchange some of its older bonds for fresh debt and reached agreement to amend the terms of other borrowings.
The company said about $214 million of old senior unsecured notes and about $180 million of old senior secured notes have been cancelled and replaced by convertible PIK notes.
Sears has also agreed to amend the terms of other bonds and loans. The actions are expected to reduce its quarterly cash interest expenses by approximately $15 million.
"The completion of these previously announced transactions will strengthen our financial footing as we continue to execute on our strategic transformation," said Sears CEO Edward S. Lampert. "We remain resolutely committed to enhancing our liquidity and working aggressively to return the company to profitability."
The struggling retailer said Wednesday it has completed its previously announced private offers to exchange some of its older bonds for fresh debt and reached agreement to amend the terms of other borrowings.
The company said about $214 million of old senior unsecured notes and about $180 million of old senior secured notes have been cancelled and replaced by convertible PIK notes.
Sears has also agreed to amend the terms of other bonds and loans. The actions are expected to reduce its quarterly cash interest expenses by approximately $15 million.
"The completion of these previously announced transactions will strengthen our financial footing as we continue to execute on our strategic transformation," said Sears CEO Edward S. Lampert. "We remain resolutely committed to enhancing our liquidity and working aggressively to return the company to profitability."