Sears on Thursday announced that the company expects to generate up to $380 million (U.S) in proceeds from selling its interest in Sears Canada by early November 2014.
According to the company, it expects to receive at least $168 million in mid-to-late October from the exercise of the rights distributed to them by ESL Partners, L.P. and Edward S. Lampert, Chairman and Chief Executive Officer of Holdings and Chairman and Chief Executive Officer of ESL Investments, Inc., which collectively with their affiliates own 48.5% of Holdings’ outstanding common stock.
“Proceeds from the rights offering will provide additional liquidity to (Sears) Holdings as it enters into the holiday period and will be used for general corporate purposes,” said Rob Schriesheim, Sears Holdings’ Chief Financial Officer. “
He said that with the $500 million dividend Sears Holdings received in connection with the Lands’ End spinoff, the $165 million in proceeds from certain real estate transactions and the $400 million short-term loan the company recently completed, the company will have generated up to $1.445 billion in liquidity in fiscal 2014.
“This further demonstrates the company’s financial flexibility and providing it the means to fund its transformation and meet all of its obligations,” Schriesheim said.
After the completion of the rights offering, Sears Holdings will continue to work with Sears Canada’s board and management to maximize long-term shareholder value and to support Sears Canada’s strategy.