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April 5, 2014
19:03 EDTLE, SHLDSears completes Land's End spin-off, receives $500M in gross proceeds
Sears Holdings (SHLD) announced that its pro-rata spin-off of Lands' End (LE) from Sears Holdings closed on April 4. Lands' End has now been separated from Sears Holdings and its common stock is expected to begin regular-way trading on the Nasdaq Capital Market under the symbol LE on April 7. Sears Holdings will continue to be listed on the Nasdaq Global Select Market under the symbol SHLD. Sears Holdings received aggregate gross proceeds from the spin-off of $500M, consisting of a cash dividend paid by Lands' End prior to the spin-off to a subsidiary of Sears Holdings. In the spin-off, Sears Holdings distributed a total of approximately 32M shares of Lands' End common stock to the holders of Sears Holdings common stock as of 5:30 p.m. Eastern time on March 24, the record date. Each share of Sears Holdings common stock outstanding as of the record date entitles the holder thereof to receive 0.300795 shares of Lands' End common stock, except that holders of Sears Holdings' restricted stock that was unvested as of the record date will receive cash awards in lieu of shares. In addition, as part of the spin-off, Lands' End entered into an asset-based senior secured revolving credit facility, which provides for maximum borrowings of approximately $175M with a letter of credit sub-limit, and a senior secured term loan facility of approximately $515M. The proceeds of the term loan facility were used to pay the $500M dividend to the Sears Holdings subsidiary and to pay fees and expenses associated with the foregoing facilities of approximately $10M, with the remaining proceeds to be used by Lands' End for general corporate purposes.
News For SHLD;LE From The Last 14 Days
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January 28, 2016
07:16 EDTLELand's End appoints James Gooch as COO and CFO
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06:53 EDTLELand's End reports preliminary Q4 revenue $464M, one estimate $444.38M
Including the impairment, Net loss is expected to be between $35 million and $50 million, and diluted loss per share is expected to be $1.08 to $1.55 in the fourth quarter of fiscal 2015 compared with Net income of $33 million and diluted earnings per share of $1.03 in the fourth quarter of fiscal 2014. The impairment is expected to negatively impact diluted earnings per share by $1.86 to $2.24. Net revenue in the Direct segment is expected to be between $401 million and $410 million for the fourth quarter of fiscal 2015 compared to $432 million for the fourth quarter of fiscal 2014. Net revenue in the Retail segment is expected to be between $63 million and $64 million in the fourth quarter of fiscal 2015, compared to $73 million in the fourth quarter of fiscal 2014. Gross margin is expected to be between 42.0% and 42.2% in the fourth quarter of fiscal 2015 compared to 44.0% in the fourth quarter of fiscal 2014. The Company is performing its annual testing of goodwill and indefinite-lived intangible assets. As a result, the Company has determined a write-down of the Lands' End trade name is required. The estimated impairment of $90 million to $110 million will reduce the value of the asset from $528 million to between $418 million and $438 million. This non-cash accounting charge will not impact the Company's liquidity, cash flows, compliance with debt covenants or any future operations.

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