the original lampert/esl bid was described as follows:
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ESL Investments Inc., a hedge fund founded by Eddie Lampert, has placed a bid of $4.6 billion to purchase what remains of Sears Holdings Corp. The acquisition would be through a newly-formed company, Newco, and would be comprised of up to $950 million in cash, a credit bid of about $1.8 billion, $500 million in Newco notes, cash, and/or waiver or assignment of deficiency claims, rollover of about $271 million in cash collateral from the LC Facility, and about $1.1 billion in assumed liabilities like gift cards and Sears' Shop Your Way loyalty program. The bid assumes that about 50,000 employees would continue working for the company and a reinstatement of the severance program.
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the bid put in yesterday was described as follows:
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Lampert’s bid is backed in part by $1.3 billion in financing from three different financial institutions, the spokesman for his hedge fund, ESL Investments Inc, said. It would preserve about 425 stores that Sears has yet to close, and secure the jobs of up to 50,000 workers out of the 68,000 employed by the retailer. An affiliate of ESL, Transform Holdco LLC, submitted the bid, the spokesman said.
People familiar with the matter said the financing comes from Sears’ existing lenders Bank of America Corp and Citigroup Inc, as well Royal Bank of Canada, which was not previously a lender, which together agreed to provide a $950 million asset-based loan and a $350 million revolving credit line.
Some of Lampert’s bid relies on $1.8 billion of Sears debt that ESL already holds and plans to forgive to back the offer, the sources said. The bid also includes about $400 million in financing from non-bank lenders, the sources said.
The bid contemplates assuming protection agreements Sears has previously sold to reassure customers who have bought appliances, televisions, lawn tractors and other big-ticket items, the ESL spokesman said.
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certainly seems there are some differences. for one, there are three different financial institutions providing financing. the lack of "proven" financing was one reason esl's prior bid was not qualified.
