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Sears Holdings Corporation Message Board

  • drewdalton35 drewdalton35 Sep 6, 2012 8:08 PM Flag

    Details of Sears Hometown Rights

    SHLD has just filed its Form 3 with the SEC for the Sears Hometown rights offerring. SHOS will have 23.1m shares outstanding.

    If my math is correct (please check) there are 106.4M shares of SHLD outstanding, which means there will be 106.4M rights (SHOSR).

    23.1 x $15 / share = $346.5M raised from equity.

    106.4 / 23.1 = 4.606 rights to buy one share at $15 / share.

    For 100 shares----

    100 / 4.606 = 21.71

    21.71 x $15 = $325 per 100 shares

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    • If you want 100 shares of SHOS, it is $1500 and about 460 of SHOSR

    • Wasn't distribution date today (11 September)? I have no rights. SHLD was bought through online broker, so I'm assuming they will be "delivered" that way, but not sure as I've never been part of a rights offering. Rights are supposed to start trading on the open market on the 12th. Feels weird that people will be selling them before I've even seen mine.

      Math appears fine by the way.

      • 3 Replies to A Yahoo! User
      • Unbelievably I still do not have might rights yet. Tradeking said the clearing firm hasn't received them from SHLD yet and "sorry for the confusion". Anyone else in this boat? I'm beginning to think something is wrong. Hope I get them before they expire.

      • My rights will finally post tomorrow (17 September) I'm told. The online broker is tradeking for anyone who cares.

        I do plan to exercise my rights and the over-subscription option. Anyone know if this is two separate transactions? Do I exercise my rights at $15*.218..../ right, then separately apply for over-subscription or do I just throw all the money at it all at once? I'm sure I'll find out soon enough through the broker, just curious if any already knew.

        Since over-subscription can't engage until after the drop-dead date for exercising rights.....when is that exercise-by date? I've been reading up on all of this, but haven't come across this date yet. I found the SHLD/SHOS prospectus submission marked as draft. Dates were left blank as was the conversion ratio but there was mention of expiration date being 20 business days after the distribution date at 5:00PM NY time, so I'm wondering if it's 1 October? There was also mention they could extended it if they wanted to.

      • I also have an acct at IBK and haven't been credited the rights yet. I bought on 9/4 and sold on 9/5, so I'm legal owner on the record date...but SHLD said at some point that "Nasdaq has not yet established an ex-date" which was a little misleading. Still waiting to hear from my acct rep as to whether the shares have been distributed. SHOS looks crazy cheap...they earned nearly $2 in the first half, and the subscription price is $15...so potentially under 4x earnings. Implied price based on the current right price of $2.10 is nearly $25..

    • If you are short the shares, I wonder how the mechanics will work if someone excercises their rights on you. Does the long pay the short, who flows it through to the company and then inherits a short on SHOS and SHLD? Do they get smoked on Taxes ie is Shos a dividend?

 
SHLD
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