Sears Holdings Corporation Launches Debut $4.0 Billion Revolving Credit Facility
06 Januar 2005 - 1:30PM
PR Newswire (US)
Sears Holdings Corporation Launches Debut $4.0 Billion Revolving
Credit Facility TROY, Mich., Jan. 6 /PRNewswire-FirstCall/ -- Sears
Holdings Corporation, currently a wholly owned subsidiary of Kmart
Holding Corporation created to facilitate the business combination
between Kmart Holding Corporation and Sears, Roebuck and Co.,
announced today the launch of syndication for a $4.0 billion Senior
Secured Revolving Credit Facility. Sears Holdings Corporation will
be the holding company for the Sears and Kmart businesses after
completion of the business combination, which is expected to close
by early March 2005. $3.5 billion already has been committed toward
the facility by eight financial institutions. The facility is to be
available for five years to fund working capital needs, capital
expenditures, acquisitions and other general corporate purposes.
"The strong start to the syndication reflects confidence within the
bank market in the financial strength of Sears Holdings
Corporation, the leadership of the combined management teams and
the focus on profitability provided by its Chairman, Edward S.
Lampert, whose ESL investment partnerships will be the company's
largest shareholder," said James B. Lee, vice chairman of JPMorgan
Chase & Co., one of the Joint Lead Arrangers. The credit
facility would become effective upon consummation of the business
combination between Kmart Holding Corporation and Sears, Roebuck
and Co., which is subject to shareholder and regulatory approvals
and is expected to occur by early March 2005. The company has
engaged JPMorgan, Citigroup and Bank of America as Joint Lead
Arrangers and Joint Bookrunners with JPMorgan serving as
Administrative Agent. About Sears Holdings Corporation Created in
connection with the merger of Kmart and Sears announced on Nov. 17,
2004, and subject to the receipt of shareholder and regulatory
approvals and the satisfaction or waiver of other conditions, upon
close of the merger, Sears Holdings Corporation is expected to be
the nation's third largest broadline retailer, with approximately
$55 billion in annual revenues, 2,350 full-line and off-mall stores
and 1,100 specialty retail stores. Sears Holdings is expected to be
the leading home appliance retailer as well as a leader in tools,
lawn and garden, home electronics and automotive repair and
maintenance. Key proprietary brands are expected to include
Kenmore, Craftsman and DieHard, and a broad apparel offering,
including such well-known labels as Lands' End, Jaclyn Smith and
Joe Boxer, as well as the Apostrophe and Covington brands. It is
also expected to have Martha Stewart Everyday products, which are
now offered exclusively in the U.S. by Kmart and in Canada by Sears
Canada. About Kmart Holding Corporation Kmart Holding Corporation
and its subsidiaries (together, "Kmart") is a mass merchandising
company that offers customers quality products through a portfolio
of exclusive brands that include Thalia Sodi, Jaclyn Smith, Joe
Boxer, Martha Stewart Everyday and Route 66. For more information
visit Kmart's website at http://www.kmart.com/ . About Sears,
Roebuck and Co. Sears, Roebuck and Co. ("Sears") is a leading
broadline retailer providing merchandise and related services. With
revenues in 2003 of $41.1 billion, Sears offers its wide range of
home merchandise, apparel and automotive products and services
through more than 2,300 Sears-branded and affiliated stores in the
U.S. and Canada, which includes approximately 870 full-line and
1,100 specialty stores in the U.S. Sears also offers a variety of
merchandise and services through sears.com, landsend.com, and
specialty catalogs. Sears is the only retailer where consumers can
find each of the Kenmore, Craftsman, DieHard and Lands' End brands
together -- among the most trusted and preferred brands in the U.S.
The company is the largest provider of product repair services with
more than 14 million service calls made annually. For more
information, visit Sears' website at http://www.sears.com/ . Sears
Holdings Corporation has filed a Registration Statement on Form S-4
with the SEC (Registration No. 333-120954) containing a preliminary
joint proxy statement-prospectus regarding the proposed transaction
involving Kmart Holding Corporation and Sears, Roebuck and Co.
Investors are urged to read the definitive joint proxy
statement-prospectus regarding the proposed transaction when it
becomes available, because it will contain important information.
Stockholders will be able to obtain a free copy of the definitive
joint proxy statement-prospectus, as well as other filings
containing information about Sears Holdings Corporation, Kmart
Holding Corporation and Sears, Roebuck and Co., without charge, at
the SEC's Internet site (http://www.sec.gov/ ). Copies of the
definitive joint proxy statement- prospectus and the SEC filings
that will be incorporated by reference in the definitive joint
proxy statement-prospectus can also be obtained, without charge, by
directing a request to Kmart Holding Corporation, 3100 West Big
Beaver Road, Troy, Michigan, 48084, Attention: Office of the
Secretary, or to Sears, Roebuck and Co., 3333 Beverly Road, Hoffman
Estates, Illinois, 60179, Attention: Office of the Secretary.
Information regarding Sears Holdings' proposed directors and
executive officers, Kmart's and Sears, Roebuck's directors and
executive officers and other participants in the proxy solicitation
and a description of their direct and indirect interests, by
security holdings or otherwise, is available in the preliminary
joint proxy statement-prospectus contained in the above-referenced
Registration Statement on Form S-4. This document contains
forward-looking statements that are subject to risks and
uncertainties that may cause actual results to differ materially
from expected results. Risks and uncertainties include the business
combination involving Sears Holdings, Kmart and Sears, Roebuck not
closing; failure to quickly realize cost-savings from the
transaction as a result of technical, logistical, competitive and
other factors; competitive conditions in retail and related
services industries; changes in consumer confidence, tastes,
preferences and spending; the availability of consumer debt;
anticipated cash flow and the ability of Sears Holdings to maintain
sufficient operating cash flow and liquidity; the successful
execution of, and customer response to, our strategic initiatives,
including the full-line store strategy and the conversion and
integration of the Kmart stores and other new store locations; the
pace of growth in our store locations, which may be higher or lower
than anticipated; the possibility that new business and strategic
options for one or more business segments will be identified,
potentially including selective acquisitions, dispositions,
restructurings, joint ventures and partnerships; trade
restrictions, tariffs, and other factors potentially affecting the
ability to do business with qualified vendors and access products
in an efficient manner; the ability to successfully implement
initiatives to improve inventory management capabilities; changes
in interest rates; the outcome of pending legal proceedings and
bankruptcy claims; social and political conditions such as war,
political unrest and terrorism or natural disasters; the
possibility of negative investment returns in pension plans;
volatility in financial markets; changes in debt ratings, credit
spreads and cost of funds; the possibility of interruptions in
systematically accessing the public debt markets; the impact of
seasonal buying patterns which are difficult to forecast with
certainty; and general economic conditions and normal business
uncertainty. We intend the forward-looking statements to speak only
as of the time first made and we do not undertake to update or
revise them as more information becomes available. DATASOURCE:
Kmart Holding Corporation; Sears, Roebuck and Co. CONTACT: For
Kmart Holding Corporation: Kmart Media Relations, +1-248-463-1021;
for Sears, Roebuck and Co.: News Media Contact: Edgar P. McDougal,
+1-847-286-9669; or for JPMorgan: Adam Castellani, +1-212-270-7441
Web site: http://www.kmart.com/ http://www.sears.com/
Copyright