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BRIEF-Sears to cut debt, pension obligations by atleast $1.5 bln this year
February 10, 2017 / 1:42 PM / 8 months ago

BRIEF-Sears to cut debt, pension obligations by atleast $1.5 bln this year

Feb 10 (Reuters) - Sears Holdings Corp

* Sears Holdings outlines next phase of its strategic transformation

* Sears Holdings Corp - launches comprehensive restructuring to streamline operations, targeting at least $1.0 billion in annualized cost savings in 2017

* Sears Holdings Corp - right-sizes asset-based credit facility, creating an incremental $140 million in liquidity

* Sears Holdings Corp - plans to reduce outstanding debt and pension obligations by at least $1.5 billion

* Sears Holdings Corp says company entered into an agreement to amend our existing asset-based credit facility

* Sears Holdings Corp - intends to optimize product assortment at sears and kmart stores

* Sears Holdings Corp - continue to evaluate strategic options for Kenmore and Diehard brands

* Sears Holdings Corp - obtaining additional $179 million of loan proceeds, which fully utilizes $500 million senior secured loan facility entered into on jan 4

* Sears Holdings - initiating closing process of 150 stores announced during q4 with expectation to complete closures of all 150 stores during q1 2017

* Says expect total revenues of $6.1 billion and $22.1 billion for q4 and full-year of 2016

* Sears Holdings Corp - on february 10, 2017, company entered into an agreement to amend our existing asset-based credit facility

* Sears Holdings - continue to evaluate strategic options for sears home services, sears auto centers business through partnerships, jv or other means

* “we continue to assess our overall operating model and capital structure”

* Sears Holdings Corp says expect that our q4 2016 net loss attributable to sears holdings’ shareholders will range between $635 million and $535 million

* Sears Holdings - total comparable store sales for q4 have declined 10.3%, comprised of decrease of 8.0% at kmart and a decrease of 12.3% at sears domestic

* Sears Holdings Corp - amendment will reduce aggregate revolver commitments from $1.971 billion to $1.5 billion

* Total comparable store sales for q4 have declined 10.3%

* Sears Holdings - amendment to credit facility provides $140 million increase to available borrowing capacity under revolver

* Sears Holdings Corp - amendment also provides additional flexibility in form of a $250 million increase in general debt basket from $750 million to $1.0 billion

* Sears Holdings - plan to reduce corporate overhead, more closely integrate sears and kmart operations and improve our merchandising, supply chain and inventory management

* Sears Holdings Corp - expect that q4 2016 net loss attributable to sears holdings’ shareholders will range between $635 million and $535 million

* Expect total revenues of $6.1 billion and $22.1 billion for q4 and full-year of 2016, respectively

* Q1 earnings per share view $-3.04, revenue view $4.52 billion -- Thomson Reuters I/B/E/S

* Sears Holdings Corp - intend to implement an integrated model to “drive efficiencies in pricing, sourcing, supply chain and inventory management”

* Q4 earnings per share view $-3.20, revenue view $5.68 billion -- Thomson Reuters I/B/E/S

* Sears Holdings Corp - targeting a reduction in outstanding debt and pension obligations of $1.5 billion for fiscal 2017

* Sears holdings - intend to capitalize on “valuable” real estate through potential in-store partnerships, reformatting to support integrated retail model

* Fy revenue view $21.77 billion -- Thomson Reuters I/B/E/S Source text for Eikon: Further company coverage:

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