Brean Capital Closes $75.0 Million Senior Secured Notes Offering for Transform Lease Opco
January 22, 2022
NEW YORK, NY – Brean Capital, LLC, a full-service investment banking firm specializing in institutional capital raising and advisory services, announced the closing of a $75,000,000 offering of Senior Secured Notes by Transform Lease Opco LLC (the “Company”), a newly formed operating subsidiary of Transform Holdco LLC, the parent entity and owner of the former assets of Sears and Kmart. The Notes were rated investment grade by a nationally recognized statistical ratings organization. Proceeds from the transaction will be utilized to provide growth capital for the repositioning and releasing of the Company’s portfolio of leased real estate assets.
“This unique transaction is another example of our progress in successfully monetizing the value of our real estate portfolio,” said Scott Carr, President of Real Estate at Transformco. Brean Capital, LLC served as the Company’s Exclusive Financial Advisor and Placement Agent in connection with the transaction.
Transformco is a privately held company with five core businesses: A real estate portfolio of 51.4 million square feet; Sears Home Services, the nation’s largest appliance repair provider; the Shop Your Way® loyalty and credit card program; Transform Brands, home of Kenmore and a licensee of DieHard; and Sears and Kmart full-line stores, specialty stores and online operations.
Brean Capital’s Investment Banking Group is dedicated to helping its clients achieve their strategic and financial goals. For more than 40 years, the Firm has specialized in providing capital raising, and financial advisory services to middle market businesses. Throughout its history, Brean Capital has established a track record of providing its clients with deep market knowledge, commitment and experience to ensure a successful transaction. For more information, please visit: www.breancapital.com/InvestmentBanking.
Transformco Completes Sale of Five Kmart Store Leases
HOFFMAN ESTATES, Ill. (Jan. 15, 2021) Transformco Properties has completed the sale/assignment of five Kmart store leases to Target Corporation. The proceeds from these sales will enable Transformco to invest in its go-forward businesses. Terms of the deal were not disclosed.
“Transformco continues to pursue opportunities to create value from its real estate portfolio and to partner with retailers, property owners and communities as part of the ongoing reinvention of retail real estate,” said Scott Carr, President of Transformco Properties.
The leases are for the following Kmart store locations:
- Kill Devil Hills, N.C. – 1091 North Croatan Highway
- Jackson, Wyo. – 510 South Highway 89
- Scotts Valley, Calif. – 270 Mt. Hermon Road
- Wall, N.J. – 1825 Highway 35
- Auburn, Maine – 603 Center Street
Transformco is a privately held company with five core businesses: A real estate portfolio of 51.4 million square feet; Sears Home Services, the nation’s largest product repair provider; the Shop Your Way® loyalty and credit program; Transform Brands, home of Kenmore and DieHard; and Sears and Kmart full-line stores, specialty stores and online operations.