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Sears to offer $1.25 billion in notes privately

10/1/2010

Hoffman Estates, Ill. Sears Holdings Corp. said Thursday that it will sell $1.25 billion of its senior secured notes with an interest rate of 6%, due in 2018, in a private offering.

The operator of Sears, Lands End and Kmart and their websites also plans to sell $250 million in notes secured by subsidiaries to the company's domestic pension plan in a private placement.

The offerings are expected to close Oct. 12.

Sears said it plans to use the net proceeds of the offerings to repay debt and fund working capital expenditures and for general corporate purposes, including share buybacks and pension fund obligations.

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