NEW YORK (AP) - Sears Holdings Corp., which operates Kmart and Sears stores,
said in a filing with the Securities and Exchange Commission on Friday that Bank
of America will not renew its $1 billion long-term credit amendment under its
existing terms.
The agreement is scheduled to end in July 2008. As of Friday, only $1.6
million in letters of credit were outstanding under that agreement, Sears said.
Sears, whose chairman in hedge fund investor Eddie Lampert, said most of its
outstanding credit is issued under its $4 billion, five-year revolving credit
facility which expires in March 2010, which has a $1.5 billion letter of credit
sublimit.
The Hoffman Estates, Ill., company said it is now using its second letter of
credit so the termination will not have any effect on its liquidity.
Banks are tightening credit lines to retailers amid a weakening economy. On
Tuesday, HSBC and Bank of America said they will either cancel or not renew
lines of credit to women's apparel retailer Talbots Inc.
Sears shares fell $3.95, or 3.8 percent, to $100.77 during electronic
aftermarket trading, after closing up 96 cents at $104.72.
Copyright 2008 Associated Press. All rights reserved. This material may not be
published, broadcast, rewritten, or redistributed.
|