Sears jumps 10% after getting short term credit loans from Lampert's ESL
On July 13, the ESL Lenders entered into short-term line of credit loans with the Second-Lien Borrowers pursuant to the terms of those certain Line of Credit Loan Proposals, dated as of July 13. The July Line of Credit Loans are in an aggregate principal amount of $200M, have a maturity of 151 days and have a fixed interest rate of 9.75% per annum. In connection with the July Line of Credit Loans, the ESL Lenders executed that certain Line of Credit Lender Joinder Also, the ESL Lenders may enter into other Line of Credit Loans made to refinance all or a part of the July Line of Credit Loans. Each subsequent Line of Credit Loan that the ESL Lenders elect to provide under the Amended Second Lien Credit Agreement will have a maturity date between 7 and 179 days,) have an aggregate principal amount outstanding at any time of no more than $100M have a fixed interest rate of not less than 8.25% per annum. ESL holds an approximately 60% stake in Sears. Shares of Sears are up 10% in morning trading to $8.84 per share.