Sears receives $500M in Land’s End spin-off
April 7, 2014-- Home Textiles Today,
Hoffman Estates, Ill. - Sears Holdings Corporation completed its spin-off of Lands' End from Sears Holdings, and Lands' End stock is expected to begin regular-way trading on the Nasdaq under the symbol "LE" today.
Sears Holdings will continue to be listed on the Nasdaq under the symbol "SHLD."
Sears Holdings received $500 million in gross proceeds from the spin-off from a cash dividend paid by Lands' End.
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, as part of the spin-off, 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 foregoing facilities of approximately $10 million, with the remaining proceeds to be used by Lands' End for general corporate purposes.