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Billionaire Edward Lampert Lends Another $300 Million to Sears Holdings Corp (SHLD)

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A newly-amended 13D filing with the SEC showed that Sears Holdings Corp (NASDAQ:SHLD) signed a Second Lien Credit Agreement with billionaire Edward Lampert‘s ESL Partners, L.P. on September 1, under which the company has borrowed $300 million of term loans as the Second-Lien Term Loan. This agreement also grants Sears Holdings (NASDAQ:SHLD) the right to acquire up to $200 million of additional loans from third parties. The Second-Lien Term Loan is set to mature on July 20, 2020, and will not amortize.

ESL Partners holds 64.63 million shares of Sears Holdings (NASDAQ:SHLD), which amass 57.8% of the company’s outstanding stock, while Edward Lampert, who is also the CEO of the company, owns the same amount of shares, which correspond to 54.7% of the shares outstanding. Mr. Lampert’s percentage is slightly lower, as more of his beneficial ownership amount is in exercisable warrants. According to this latest filing, there has been a slight increase to both the fund’s and Mr. Lampert’s stakes, as each held 64.61 million shares as reported in its previous 13D filing, released on August 26.

Sears Holdings is a holding company that owns retail store brands Sears, Roebuck and Co., and Kmart Holding Corporation. Since the beginning of the year, the company’s stock has lost 35.17%. For the second quarter of 2016, Sears Holdings reported a diluted loss per share of $3.70 and revenue of $5.7 billion, compared to earnings per share of $1.84, and revenue of $6.2 billion for the corresponding quarter a year earlier. Recently, Evercore ISI reiterated its ‘Sell’ rating on Sears Holdings’ stock.

 

ESL INVESTMENTS

Of the 749 hedge funds that we track which filed 13F’s for the June quarter, 16 were long Sears Holdings (NASDAQ:SHLD) at the end of June, down from 19 at the end of March. Some of the bullish investors included Debra Fine’s Fine Capital Partners, with a position valued at $34.87 million, Michael Blitzer’s Kingstown Capital Management, which held $34.03 million in Sears shares, Francis Chou’s Chou Associates Management, Gordy Holterman and Derek Dunn’s Overland Advisors, and Ken Griffin’s Citadel Investment Group.

Among the investors who lost interest in Sears Holdings (NASDAQ:SHLD) and sold out of their positions during the second quarter were Jim Simons’ Renaissance Technologies, which said goodbye to a position valued at $931,000 on March 31, Mark Broach’s Manatuck Hill Partners, which dumped a $230,000 position, Alec Litowitz and Ross Laser’s Magnetar Capital, and David Charney snd Sky Wilber’s Foundation Asset Management.

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You can access the original SEC filing by clicking here.

Ownership Summary Table

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
ESL Partners 26,801,105 0 26,801,105 37,484,424 64,285,529 57.5%
SPE I Partners 150,124 0 150,124 011 150,124 0.1%
SPE Master I 193,341 0 193,341 011 193,341 0.2%
RBS Partners 27,144,570 0 27,144,570 37,484,424 64,628,994 57.8%
ESL Investments, Inc 27,144,570 0 27,144,570 37,484,424 64,628,994 57.8%
Edward S. Lampert 64,628,994 0 27,144,570 37,484,424 64,628,994 54.7%
Edward Lampert
Edward Lampert
ESL Investments

Page 1 of 17 – SEC Filing

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 47) *

 

 

Sears
Holdings Corporation

(Name of Issuer)

Common Shares

(Title of
Class of Securities)

812350106

(CUSIP Number)

Janice V.
Sharry, Esq.

Haynes and Boone, LLP

2323 Victory Avenue, Suite 700

Dallas, Texas 75219

(214) 651-5000

(Name,
Address and Telephone Number of Person Authorized to Receive Notices and Communications)

September 1, 2016

(Date of Event which Requires Filing of this Statement)

 

 

If the filing person has
previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.  ¨

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for
other parties to whom copies are to be sent.

* The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information
which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be
deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of
the Act (however, see the Notes).

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