Sears to hold rights offering

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Sears Holdings Corp. released a statement offering shareholders to buy $625 million worth of notes due 2019 as well as warrants as a rights offering. Fairholme Capital Management, which is in acquisition of 23.2 per cent of the company, announced in the statement that certain clients will participate. The company shared that all the proceeds from this will go towards general corporate purposes. According to a Sears blog post, the retailer is expecting to raise $2.07 billion by the end of this year. This month alone, the company has offered 40 million shares to shareholders for the Canadian unit.

“This deal bolsters the balance sheet by alleviating the immediate liquidity issues,” Steven Azarbad, co-founder and chief investment officer of Maglan Capital, told Bloomberg. “It doesn’t solve all the liquidity problems, but it buys the company six to nine months.” CJ

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