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Sears borrows $1 billion under new loan

HOFFMAN ESTATES, Ill. (AP) -- Sears Holdings Corp. said Wednesday that has borrowed $1 billion under a new senior secured loan to help it pay other debts.

The retailer had said last month that it planned to get the loan to help lower borrowings under its revolving credit facility. The new loan comes due in June of 2018.

Sears, based in Hoffman Estates, Ill., runs nearly 2,500 Sears and Kmart retail stores in North America. In the May-July quarter, the retailer's loss widened as it struggled with weak sales and the impact of deep discounts. The company has been working for some time to cut costs and lower its debt.

Shares of the company rose 80 cents, or 1.3 percent, to close at $64.56.