Sears Spin-Off Begins Trading Today

Sears Hometown and Outlet Stores Inc. (NASDAQ: SHOS) began trading today following the close earlier this week of the rights offering from Sears Holdings Corp. (NASDAQ: SHLD). Shares were initially valued at $31 and have slipped a little in the first half-hour of trading.

Sears Holdings received a total of $446.5 million from the spin-off, $346.5 million from the rights offering and $100 million as a dividend payment from Sears Hometown prior to the separation. The payment from Sears Hometown was made from an "asset-backed senior secured revolving credit facility" with a total borrowing capacity of $250 million.

Next up for Sears Holding is likely to be a transaction involving a partial spin-off of the company's Sears Canada division.

Shares of Sears Holding are trading down about 1.2% at $60.21 this morning in a 52-week range of $28.89 to $85.90.

Sears Hometown shares are trading down about 1.6% at $30.50 on light volume of just 55,000 shares.

Paul Ausick