Sears Holdings – Seeks Expeditious Sale of up to $900 million of Medium Term Notes

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November 9, 2018 – Sears Holdings requested Court approval for the sale of Medium Term Notes [Docket No. 642]. The motion explains, “By this Motion, the Debtors request, authority to sell certain SRAC Medium Term Notes Series B (the “MTNs”) issued by Debtor Sears Roebuck Acceptance Corp. (‘SRAC’) and currently owned by various other Debtors. The Debtors have a unique opportunity to sell the MTNs and maximize their value for the benefit of all creditors, but only if a sale can be accomplished expeditiously….As of the Commencement Date, the outstanding principal amount of the MTNs was approximately $2.3 billion, plus unliquidated amounts including interest thereon and fees, expenses, charges, and other obligations incurred in connection therewith as provided under the 2002 SRAC Indenture. Approximately $1.4 billion of the MTNs are held by Sears Reinsurance Company, a non-Debtor affiliate of the Company….The Auction currently is scheduled for November 14, 2018. Thus, to be able to take advantage of favorable market forces and maximize the value of the MTNs, the Debtors must be able to effect a transfer of the MTNs prior to November 14, 2018….Given the extremely compressed time frame with which they are working, the Debtors determined that the quickest and most efficient way to sell the MTNs would be to retain a nationally recognized broker/dealer which will contact all potentially interested parties and run a sale process.  The Debtors’ financial advisor contacted Barclays Bank PLC, Credit Suisse Securities (USA) LLC, Jefferies, Morgan Stanley & Co., LLC, and Goldman Sachs, all of which are eminently qualified to manage the sale process, and requested that they provide proposals to act as broker/principal in connection with the sale of the MTNs.” The Court scheduled a November 13, 2018 hearing to consider the motion with objections due on the same date.

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