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Sears Holding Distressed Debt Exchange

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On March 21, 2018, Fitch Ratings downgraded the Long-Term Issuer Default Ratings on Sears Holdings Corporation, Sears Roebuck Acceptance Corp. and Kmart Corporation to RD from C following the closing of its distressed debt exchange announced January 23, 2018. The Company exchanged $170 million of its $303 million of 6.625% senior second-lien notes due 2018 to $170 million senior secured convertible PIK toggle notes due 2019, $214 million of its $625 million 8.000% senior subordinated notes due 2019 into senior unsecured PIK toggle notes due 2019 and $100 million of unsecured SRAC notes into like principal PIK notes due March 2028. Fitch views these exchanges as a DDE, given extension of maturity date and the change in interest from cash-pay basis to PIK.

On March 22, 2018, S&P Global Ratings lowered its corporate credit rating on Sears Holdings Corporation to SD from CC due to the Company’s completion of its previously announced debt exchange offers. At the same time, S&P lowered the issue level ratings on the debt issues that were the subject of the completed exchange offer to D. Read more on distressed companies.

The post Sears Holding Distressed Debt Exchange appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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