Market Overview

Sears To Generate At Least $1.5 Billion In Liquidity In Fiscal 2014

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Cash-strapped and struggling retailer Sears Holdings Corp (NASDAQ: SHLD) announced a series of plans and action that it expects will generate $1.5 billion to $2.07 billion in liquidity in fiscal 2014.

Sears announced on Monday a rights offering for up to $625 million of 8 percent senior notes. The company said that its largest holder ESL Fund (operated by Sears CEO Edward Lampert) will participate in the rights offering for $303 million.

Sears also entered in to an agreement on Monday with U.K. based Primark to lease 400,000 square feet in seven of its stores in the Northeastern United States. The move marks Primark's expansion to the Unite States after successfully operating across several European countries.

Monday's move comes a week after the company announced a rights offering for up to 40 million common shares of Sears Canada for up to $380 million. Under the terms, existing stockholders can purchase 0.375643 of a common share of Sears Canada for each share of Sears Holdings common stock owned at a purchase price of $9.50 per share.

Sears said that it is still evaluating a capital structure that will give the company long-term flexibility.

Shares of Sears were trading higher by 22 percent Monday afternoon.

Posted-In: Edward Lampert Primark Sears Canada Sears HoldingsNews

 

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