Refinancing

Struggle to understand the private refinancing operation announced yesterday. Why are not all ESL loans getting PIK interest, while would SHLD give the option of an 30% Equity stake to the 6.5/8 bond holders to extend 300 Mio for a year? Does SHLD believe that equity is worth less than 1 bn bn? Is it a mean for ESL to get the interest in most of its loan (only interest on 300 Mio of those will be PIK)? If E. Lampert truly believe the quity is worse a multiple of current price and his not intending to screw shareholders in a chapter 11, why isn’t he personally lending money to SHLD with a new 500 or more mios convertible with a maturity of 5 + years convertible at 5-10?if NAV is truly 50+ and the transformation works it would be a fantastic opportunity for him he would dilute others but not him contrary to what was presented yesterday. Maybe it is the a machiavelic plan... proposing what he did yesterday, hoping/knowing that it will be refused and once again come as the savior and fund a new convertible all by himself!

SHLD saga will be great material for future books! Is E.Lampert a vilain or truly trying to save SHLD and treat minority holders fairly!

Comment! It's anonymous!

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Again...No one is going to buy any stores as a going concern. They aren't just going to change the sign and keep everyone on. If a location is is decent enough shape and a competitor wanted it Sears would close the location and sell the real estate or lease in a heartbeat. The competitor would then do a major remodel and several months later open a new store.

People keep looking for a miracle. It ain't happening.

If anyone thinks that Eddie has all of a sudden become altruistic they are crazy. Whatever the plan it will benefit Eddie in some way and scr*w everyone else. He is a disciple or Ayn Rand whose philosophy is to only look out for yourself.

SHLD stock was down 8% today and could drop below $3 as soon as tomorrow. I won't be shocked to hear of Eddie pulling the plug in the near future. Are any Sears/Kmart stores doing well enough to be sold to a competitor as is?

1.3B of debt is due in Oct of this this year. So... Sears / ESL is boxed in.

Bond holders won't extend the debt without an incentive. IMO the offered conversion rate for the debt exchange is TOO LOW. I expect no holders to accept the offer without it being sweetened. The conversion rate is based on a 9$ stock price; but SHLD stock isn't trading at 9$. As well conversion is seldom used until a default occurs; and when a default occurs (or inversely when there ihas been a large increase in the equity price). If a default occurs there may be little or no return of principal to the debt holders.

As well the offered conversion ratio is not accounting for dilution on conversion; which would raise the OS from 107 million shares to almost 300 million shares.

That's getting the best deal for himself. Does not care about Sears and KMart associates. Any Rand, his hero, believed in free will. Man's choice. It's our choice and own fault to stay at Sears according to this type of thinking. There is no sentimentality or emotion involved.

He's a PE asset stripper like the rest .

Time will tell. Personally I believe he is trying to get the best deal for himself financially.

Thread regarding Sears layoffs

Refinancing

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