Sears Holdings secures $500m loan

11 April 2016 (Last Updated April 11th, 2016 18:30)

Department store operator Sears Holdings has secured a $500m loan, which will mature next July.

Department store operator Sears Holdings has secured a $500m loan, which will mature next July.

The short-term loan was partially financed by $125m in funding from US-based Cascade Investment, reported Detroitnews.com.

To secure $500m, Sears used 20 of its mortgaged properties as collateral.

"To secure $500m, Sears used 20 of its mortgaged properties as collateral."

Maturing next year, an additional $125m loan has been funded by ESL Investments, which is controlled by Sears Holdings hedge fund manager Edward Lampert.

This is the second loan raised by the company this year.

In March, it closed a $750m first-lien loan that was due in July 2020, as per a data of Bloomberg.

Sears has been facing losses as consumers have been preferring online shopping over malls. Reuters reported that it has lost more than $8bn over the last five years.