Sears Holdings borrows $400m from Lampert

The embattled Sears Holdings is taking all the help it can get, even if that means reaching into the pockets of its CEO, Edward Lampert.

According to an SEC filing submitted on Monday, the retailer is securing a $400 million loan from ESL Investments, Lampert's hedge fund, which will be used for as-of-yet unspecified purposes.

Lampert -- and by extension, ESL Investments -- currently stands as Sears Holdings' biggest shareholder. However, ESL lowered its stake in Sears less than a year ago due to pressure from wary investors.

The short-term loan, which will mature on Dec. 31, has an interest rate of 5% and an upfront fee of about $7 million. The loan is also being disbursed in two installments -- with half funded at the close of business Sept. 15, and the other half due on Sept. 30.

The company will have the option to extend the loan through Feb. 28, 2015, if necessary, provided it doesn't default on the terms.

In its most recently completed quarter, the company reported a net loss of $573 million, compared with a loss of $194 million in the prior-year quarter.

Shares of Sears Holdings were down more than 9% at press time Tuesday afternoon.