by Burke Speaker | March 17, 2014 10:26 pm
Sears (SHLD) is pushing Land’s End out on its own to be an independent company beginning in April, which will trade under NASDAQ with the symbol LE.
SHLD stockholders as of March 24 will receive a 0.3 share of Land’s End for each share of SHLD stock they own.
Reuters is reporting that prior to the spin-off, Lands’ End will pay a $500 million dividend to Sears which is funded by a new senior secured term loan.
Sears has been struggling financially and it’s been speculated for some time that it would shed Land’s End.
Lands’ End is the latest asset that Sears has shed as it struggles with mounting operating losses and declining sales.
Sears spun off its Orchard Supply Hardware Stores unit in 2011 and its Sears Hometown and Outlet business in 2012. The company continues to operate its Sears department stores and the Kmart discount chain.
Lands’ End is expected to borrow perhaps some $175 million for capital via an asset-based senior secured revolving credit facility, Sears said in its announcement.
Sears is down in the last full year by 13%, but went up about 1% on the news.
SHLD stock is down 8% year to date.
Source URL: http://investorplace.com/2014/03/shld-sears-lands-end-le-stock/
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