Orchard Supply preferreds to go to holders in spin-off from Sears

By Jennifer Chiou

New York, June 23 - Orchard Supply Hardware LLC registered up to $82 million of class A common stock and series A preferred stock in an S-1 filed with the Securities and Exchange Commission in connection with its spin-off from Sears Holdings Corp.

The spin-off will result in Sears Holdings shareholders owning all of the capital stock of Orchard currently owned by Sears, consisting of common stock that will represent about 80% of the voting power of Orchard's stock and preferred stock that will represent all of Orchard's nonvoting capital stock.

The pro rata distribution will be made in book-entry form.

The company said that it anticipates that the spin-off will be free of tax to shareholders.

Sears is a Hoffman Estates, Ill.-based broadline retailer. Orchard Supply operates 89 full-service hardware stores in California.

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