Sears Completes Offering for Spin-Off

Sears Holdings Corp. (NASDAQ: SHLD) announced this morning that it has completed the subscription period for its rights offering that will spin off the company's Sears Hometown and Outlet stores. The rights offering was fully subscribed by the announced expiration date of October 8.

Sears will distribute 23.1 million shares of common stock in Sears Hometown and Outlet Stores Inc. to rights holders and estimates gross proceeds of about $346.5 million. Sears Hometown will also secure a new "asset-based senior secured revolving credit facility ... for aggregate maximum borrowings of up to $250 million." The new company will draw $100 million from the new facility "to pay a cash dividend to Sears Holdings prior to its separation from Sears Holdings." Thus, the gross proceeds coming to Sears Holdings will be $446.5 million.

Shares of common stock in Sears Hometown are expected to begin trading this Friday on the Nasdaq Capital Market under the ticker symbol SHOS.

Shares of Sears Holdings closed up 3.2% last night at $58.58 in a 52-week range of $28.89 to $85.90.

Paul Ausick


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