General Electric's finance arm, GE Capital, said Tuesday it is lending $400 million of a previously announced $4 billion credit line to retailer Sears Holdings Corp. to provide working capital.
As part of the amended credit facility announced last month, Bank of America Securities contributed $375 million, and Wells Fargo Retail Finance contributed $400 million to Sears as part of the $4 billion credit facility. Both companies, along with GE Capital Markets, led the credit line, which replaced an old credit line, as joint lead arrangers and bookrunners.
The rest of the funds were provided by a larger group of banks and investors, GE said.
GE Capital Markets served as joint lead arranger for the loan.
Sears Holdings is led by financier Edward Lampert. Sears Holdings owns Sears and Kmart stores and sells home appliances, tools, home electronics and other merchandise. It is based in Hoffman Estates, Ill.
"We're pleased to be able to provide $400 million to Sears in this transaction, making the largest contribution of new capital to the company and demonstrating how retailers benefit from working with a retail-focused lending team," said Jim Hogan, managing director of GE Capital, Corporate Retail Finance.
Shares of GE declined 9 cents to $13.77 in trading. Sears Holdings gained $5.32, or 8.8 percent, to $67.25.
