Sears Offers $665mln Senior Secured Notes, CDS Tightens By 32% (SHLD)

Sears (SHLD) is offering $665 million in Senior Secured Notes (due 2018) to "repay borrowings under our senior secured revolving credit facility, to fund working capital requirements of our retail businesses, capital expenditures and for general corporate purposes, including common share repurchases and pension funding obligations" [full release].

Get the money while it's cheap. Remember Tom Lee of JP Morgan said there would be a giant refi-boom in corporate debt? These unregistered notes are being offered privately to "qualified buyers" and $165 million to the Sears Pension Fund. I was browsing CMA Datavision's CDS market movers and saw that Sears Holdings was the top tightener. Sears 5Y CDS (tightened by 32% in basis points, credit quality improved) to 256bps. Look at all the Sears Roebuck Acceptance Corp bonds outstanding.

Courtesy of CMA Datavision

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