(Reuters) - Sears Holdings Corp's (SHLD.O) planned real estate investment trust, Seritage Growth Properties, filed for a $1.57 billion subscription rights offering that allows Sears shareholders to buy up to 53.3 million common shares of the REIT.
Seritage, which has been set up by Sears to shore up finances, said it would offer existing shareholders subscription rights to buy its shares for $29.58 per share. (1.usa.gov/1IqL4Av)
The REIT will buy and lease back about 254 Sears and Kmart stores, Sears said previously.
The REIT also said it would offer 9.5 million class C non-voting shares in lieu of certain of its common shares at the same price to Sears' No. 2 shareholder Fairholme Capital Management LLC.
If the offering is fully exercised, Fairholme will hold more than 11.7 percent of the REIT's shares.
The subscription rights offering will expire on July 2, Seritage said.
Seritage also intends to apply to list its shares for trading on the New York Stock Exchange under the symbol SRG.
The REIT is the latest in a series of steps Chief Executive Eddie Lampert has taken to raise cash for the retailer, which has posted losses for nearly three years.
Sears on Monday reported its 12th straight quarterly loss as revenue slumped 25 percent, hurt in part by the sale of most of its stake in its Canadian operations, the spinoff of the Lands' End clothing chain and the closure of stores.
Lampert controls more than half of Sears and Fairholme holds about a quarter of the shares.
Reporting by Ramkumar Iyer in Bengaluru; Editing by Cynthia Osterman