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Sears Holdings Corp. (SHLD) Message Board

  • dvdbckagn dvdbckagn Aug 14, 2012 9:27 AM Flag

    Eddie and the boards spinoff

    how does it breakdown for the shareholder in regards to the spinoff per share?

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    • As I see it, Sears Holdings (SHLD) is raising a total of $446.5M in the Sears Hometown (SHOS)rights offering. $346.5M is in the form of equity and $100M is in the form of debt. If SHLD shareholders exercise their rights they must pay $3.25 per share ($346.5 / 107m shares) to maintain their ownership in SHOS.

      In the S-1 filed with the SEC, SHOS has projected "Adjusted EBITDA" of $100m for the fiscal period ended Jan 31, 2015. So it is being valued at 4.5 times EBITDA two years out. I am thinking that since Eddie & Bruce are putting up 77% of the money the projections are quite conservative. Housing is bottoming out.

      As Eddie said in his letter and at this years annual meeting as a shareholder can own shares in both companies or one or the other.

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