In an effort to pay down its existing revolving credit facility, Sears Holdings (NASDAQ:SHLD) has contacted its lender to inquire about issuing a senior, secured loan of as much as $1 billion, the company announced today. Sears currently has a $3.275 billion revolving credit line with the same lender, it said in its statement.

The new senior secured term loan, if agreed upon, would utilize the same collateral as the existing revolving credit facility, Sears said, and would come due in June of 2018.

Proceeds from the incremental loan would be used to "reduce borrowings under the revolving credit facility," according to Sears' statement. The new loan is subject to gaining lender commitment, market conditions, and customary closing provisions.

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