Tuesday April 8th, 2014 - 9:29AM
Sears Holdings has completed its spin off of Lands End. The company will now trade separately on the Nasdaq Capital Market under the symbol "LE". The move gives Sears Holdings gross proceeds from the spin-off of $500 million, consisting of a cash dividend paid by Lands' End prior to the spin-off to a subsidiary of Sears Holdings.
In the spin-off, Sears Holdings distributed a total of approximately 32 million shares of Lands' End common stock to the holders of Sears Holdings common stock. In addition, Lands' End entered into an asset-based senior secured revolving credit facility, which provides for maximum borrowings of approximately $175 million with a letter of credit sub-limit, and a senior secured term loan facility of approximately $515 million. The proceeds of the term loan facility were used to pay the $500 million dividend to the Sears Holdings subsidiary and to pay fees and expenses associated with the spin-off.
In an unrelated move Sears announced that William Hutchinson will join the company as svp and president/Supply Chain. Hutchinson most recently served as vp/global fulfillment and logistics for Dell, Inc. He succeeds Raj Penkar who has led the company's Supply Chain business unit since 2011. Penkar will retire from Sears Holdings on May 31.
In his new role Hutchinson will be accountable for all aspects of the company's supply chain, including distribution, transportation, customs compliance and global sourcing, according to the company.
"Bill possesses the right combination of leadership, operational proficiency and technical acumen to lead our Supply Chain business unit," said Edward Lampert, Sears Holdings chairman and CEO. "His significant background working within retail environments will support a seamless transition and Bill's proven ability to achieve results is critical to improving our members' experience."