Sears expects $446.5 million from offering tied to Hometown, Outlet spinoff
HOFFMAN ESTATES, Ill. — Sears Holdings Corp., which in February announced it would spin off its Hometown and Outlet businesses as a separate publicly traded entity, said Tuesday it expects to receive about $446.5 million in gross proceeds from an offering tied to the spinoffs.
The offering of rights to purchase shares of the spinoff debuted on the Nasdaq under the "SHOSR" ticker symbol in September. According to Sears, the rights offering expired on Monday; preliminary results show that more than 95% of the options were exercised.
Sears said it anticipates distributing 23.1 million shares to rights holders.
Sears Hometown is expected to take out a $250 million credit line. The company then plans to draw $100 million under the credit line to pay a cash dividend to Sears Holdings before it separates from the company. That will make up part of the part of the proceeds that Sears Holdings receives.
Sears Hometown is expected to start trading on the Nasdaq under the "SHOS" ticker symbol on Friday.