SEARS FILES OFFERING WITH SEC
SEARS FILES OFFERING WITH SEC CHICAGO, Feb. 4 /PRNewswire/ -- Sears, Roebuck and Co. (NYSE: S)
announced today that it filed a registration statement with the Securities and Exchange Commission (SEC) for a preferred stock offering in the form of 25 million depositary shares, each representing one-fourth of a share of mandatorily exchangeable preferred shares, also known as PERCS. PERCS is a trademark of Morgan Stanley & Co. Incorporated.
Sears estimates that, based on yesterday's closing market price of its common stock, the aggregate amount raised in the offering will be approximately $1.0 billion. Sears PERCS will automatically be exchanged for common stock in 1995, and will be exchangeable for common stock at Sears election or in specific circumstances prior to that time. The PERCS structure limits the investor's equity appreciation, but provides a dividend yield higher than on the issuer's common shares. Edward M. Liddy, Sears senior vice president and chief financial officer, said, "We are pursuing this financing option to reduce our debt and further strengthen our balance sheet. The capital markets are currently very attractive." Sears said Goldman Sachs & Co. will serve as lead manager and Morgan Stanley & Co. Incorporated and Dean Witter Reynolds Inc. will serve as co-managers for a syndicate of underwriters in connection with the offering. The underwriters will be granted an option to purchase up to 3.75 million additional depositary shares to cover over-allotments. A registration statement for these securities has been filed with the SEC, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. A copy of the prospectus, when available, may be obtained from Goldman Sachs & Co., Prospectus Department, 85 Broad Street, New York, N.Y. 10004; Morgan Stanley & Co. Incorporated, 1251 Avenue of the Americas, New York, N.Y. 10020; or Dean Witter Reynolds Inc., Two World Trade Center, New York, N.Y. 10048. -0- 2/4/92 /CONTACT: Gerald E. Buldak of Sears, 312-875-8371/ (S) CO: Sears, Roebuck & Co. ST: Illinois IN: REA SU: OFR SM -- NY030 -- 6583 02/04/92 10:12 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Feb 4, 1992|
|Previous Article:||NEW NAME REFLECTS WORLDWIDE BUSINESS STRATEGY FOR PARAMAX SYSTEMS CORPORATION, A UNISYS SUBSIDIARY|
|Next Article:||NRC STAFF PROPOSES $125,000 FINE AGAINST DUKE POWER FOR ALLEGED VIOLATION OF NRC REQUIREMENTS AT OCONEE|