Sears Holdings Corp (NASDAQ:SHLD) announced Monday it plans to raise at least $1 billion in debts to replace its existing credit line, reports Associated Press. The Hoffman Estates, Illinois-based struggling retailer said the senior secured term loan will replace a part of its existing $3.275 billion revolving credit line.

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Sears’ revolving credit line to mature in 2016

Sears Holdings Corp (NASDAQ:SHLD) said the loan will mature in June 2018, and will be secured by the same collateral as its existing credit facility. Revolving credit facility is a type of loan where the amount repaid can be borrowed again in the future. The existing revolving credit line of $3.275 billion will mature in April 2016. According to Bloomberg, Sears Holdings Corp (NASDAQ:SHLD) has used $2.2 billion from the credit facility. Sears Holdings Corp (NASDAQ:SHLD) said that the incremental term loan will be used to lower the debts under its revolving credit facility.

Sears Holdings’ attempt at restructuring

Billionaire hedge fund manager Edward Lampert controls the company. Lampert and his hedge fund ESL Investments own about 55% of the company. Last month, Sears Holdings Corp (NASDAQ:SHLD) announced the second quarter loss of $194 million as sales continued to plummet. Sales for the quarter plunged 6% to $8.8 billion. It was the 26th consecutive decline in the company’s quarterly sales. However, Sears Holdings Corp (NASDAQ:SHLD)’s online sales surged 20% during the quarter. The company has been trying to revamp its image by allowing third-party vendors to sell upscale offerings.

Though investors consider it an integrated retailer, Credit Suisse believes that it is nothing more than an accumulation of pieces. The company has about 2,500 retail stores in the U.S. and Canada, including 851 Sears stores and 1,211 Kmart stores. Some of its most popular brands are DieHard, Kenmore and Craftsman. Last year, the company spun off its Outlet and Sears Hometown stores

Sears Holdings Corp (NASDAQ:SHLD) shares jumped 1.46% to $61.30 at 11:09 AM EDT. The stock has gained 54.3% this year so far, but is still trading well below its April 23, 2010 peak of $122.01.