Sears Says Board OK's $625 Million Debt-and-warrant Offering

Sears Holdings Corp. said its board has approved a rights offering that will allows shareholders to buy up to $625 million in 8% senior unsecured notes due 2019 and warrants to buy shares of its common stock. In an announcement Monday, the retailer said the rights offering will raise an additional $625 million in proceeds if it's fully subscribed and closes as planned. Sears also said Edward S. Lampert, chairman and chief executive officer, and certain investment funds have told the company they will exercise their pro rata portion of the subscription rights in full. Sears also announced seven lease holdings with European fashion retailer Primark.