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SHLDQ - Sears Holdings Corp


alertmeipp

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  • 2 weeks later...

Looks like they withdrew that consent solicitation:

"Subsequent to the end of our third quarter, we commenced a consent solicitation to amend the borrowing base definition in the indenture. We subsequently terminated the consent solicitation prior to its scheduled expiration. "

 

They also said their debt exceeded the borrowing base at quarter end:

"As of October 28, 2017, our borrowing base was below the above threshold, and if our borrowing base is below the above threshold at the end of our fiscal year, it will trigger an obligation to repurchase or repay second lien debt, in an amount equal to the excess of our funded debt secured by liens on our inventory as of year-end over the borrowing base. If we fail to make such repurchase or repayment, we would be in violation of our covenants under our Second Lien Credit Agreement. "

 

 

 

 

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Anybody buying the 2018 6 5/8 debt here?

 

Looks they are trying to extend the maturity of the 2018 term loan that matures in June.  I think all of the other debt that matures in front of the 6 5/8 notes is basically the loans controlled by Lampert and backed by real estate.  Why wouldn't those loans get refinanced/maturities extended/paid off with real estate sales and clear pathway for the $300M of notes to get paid in October?

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Few 18 and lot of 19's..

 

Anybody buying the 2018 6 5/8 debt here?

 

Looks they are trying to extend the maturity of the 2018 term loan that matures in June.  I think all of the other debt that matures in front of the 6 5/8 notes is basically the loans controlled by Lampert and backed by real estate.  Why wouldn't those loans get refinanced/maturities extended/paid off with real estate sales and clear pathway for the $300M of notes to get paid in October?

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  • 4 weeks later...

"Vornado, meanwhile, recently paid roughly $46 million to Kmart – whose department store occupies about 30,000 square feet on the ground, mezzanine and lower-level of the building"

 

 

https://therealdeal.com/2018/01/04/vornado-has-plans-to-clear-out-more-space-for-facebook-in-midtown-south-sources/

 

That's $1500 PSF to buy out a lease

 

Well, the location of that store is absolutely incredible...

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"Vornado, meanwhile, recently paid roughly $46 million to Kmart – whose department store occupies about 30,000 square feet on the ground, mezzanine and lower-level of the building"

 

 

https://therealdeal.com/2018/01/04/vornado-has-plans-to-clear-out-more-space-for-facebook-in-midtown-south-sources/

 

That's $1500 PSF to buy out a lease

 

Well, the location of that store is absolutely incredible...

 

The Kmart store occupies 150,000 sq ft. according to the Astor Place website

 

http://astorplace.nyc/directory/kmart

 

 

 

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As it relates to the 2018 senior secured notes maturing in October, the 3Q 10-q states "Subsequent to the end of our third quarter, we commenced a consent solicitation to amend the borrowing base definition in the indenture. We subsequently terminated the consent solicitation prior to its scheduled expiration. "

 

The implication is that they did not get consent for the amendment?

 

So, anyone know how these notes were amended as stated in the release today?

 

https://finance.yahoo.com/news/sears-holdings-announces-plan-enhance-120000554.html

 

Can they just amend unilaterally? How does this work?

 

 

 

 

 

 

 

 

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As it relates to the 2018 senior secured notes maturing in October, the 3Q 10-q states "Subsequent to the end of our third quarter, we commenced a consent solicitation to amend the borrowing base definition in the indenture. We subsequently terminated the consent solicitation prior to its scheduled expiration. "

 

The implication is that they did not get consent for the amendment?

 

So, anyone know how these notes were amended as stated in the release today?

 

https://finance.yahoo.com/news/sears-holdings-announces-plan-enhance-120000554.html

 

Can they just amend unilaterally? How does this work?

 

It would depend on the terms of the Bond Indenture I would think.

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As it relates to the 2018 senior secured notes maturing in October, the 3Q 10-q states "Subsequent to the end of our third quarter, we commenced a consent solicitation to amend the borrowing base definition in the indenture. We subsequently terminated the consent solicitation prior to its scheduled expiration. "

 

The implication is that they did not get consent for the amendment?

 

So, anyone know how these notes were amended as stated in the release today?

 

https://finance.yahoo.com/news/sears-holdings-announces-plan-enhance-120000554.html

 

Can they just amend unilaterally? How does this work?

 

There was a second solicitation process to extend the maturity which was over subscribed

 

please can you provide more details. I have few 18 notes but didn't receive any consent proposals. Thanks

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The recent filing says they did receive the required majority consent to amend the notes.  They were already at 48% when the first solicitation went out, which must have come from institutional investors. I'm guessing they privately received 50% consent from institutions without needing to send a second solicitation to retail investors. 

 

Does anyone know who owns this debt? Berkowitz and Lampert don't own much, and their consent wouldn't count anyway since they are affiliated with the company.

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