Sears Holdings Corp., Hoffman Estates, Ill., plans to offer $165 million of notes to its domestic pension plan as part of the retailer’s plan to issue $500 million of senior secured notes maturing in 2018 in its first debt sale since June 2003.
Proceeds may be used to repay borrowings under the company’s senior secured revolving credit facility, to fund working capital requirements of its retail businesses, and for general corporate purposes, according to the statement.
Sears sold $11.6 million of notes in a three-part offering on June 30, 2003, according to data compiled by Bloomberg. Sears is rated Ba2 by Moody’s Investors Service and BB- by Standard & Poor’s.
Sears had $3.63 billion in defined benefit assets as of Jan. 30, according to Sears’ 10-K.