Sears Holdings Announces Pricing of $1B Senior Secured Notes Offering

Sears Holdings Corporation SHLD announced today that it has agreed to sell in a private placement $1 billion of 6⅝% senior secured notes due 2018. Concurrent with the closing of the sale of the Notes described above, the Company will sell $250 million aggregate principal amount of Notes to the Company's domestic pension plan in a private placement. The Notes will be guaranteed by certain subsidiaries of the Company. The offering of the Notes is expected to close on October 12, 2010. The Company plans to use the net proceeds of the offering to repay borrowings outstanding under our senior secured revolving credit facility on the settlement date and to use the remainder of the net proceeds to fund working capital requirements of our retail businesses, capital expenditures and for general corporate purposes, including common share repurchases and pension funding obligations.