Sears planning rights offering that may raise up to $625M; announces Primark lease deal

Sears is looking to raise more cash, announcing that it is planning a rights offering that may raise up to $625 million.

The company, which runs Kmart and its namesake stores, also said Monday that it struck a leasing deal with European fashion retailer Primark.

Sears Holdings Corp. said the rights offering will allow its stockholders to buy up to $625 million senior unsecured notes due 2019 and warrants to buy shares of its common stock. It anticipates up to $625 million in proceeds if the offering is fully subscribed and closes as planned. The proceeds will be used for general corporate purposes.

Earlier this month Sears said it would sell most of its stake in its Canadian unit to raise as much as $380 million.