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ALL CLEARING MEMBERS
DATE:
OCTOBER 26, 2012
SUBJECT:
ADJUSTED SEARS HOLDINGS CORPORATION – FURTHER
ADJUSTMENT
OPTION SYMBOL: SHLD1
DATE:
10/30/12
Adjusted Sears Holdings Corporation (SHLD1) options were adjusted on September 13, 2012 and further
adjusted on October 10, 2012. The new deliverable is now 1) 100 Sears Holdings Corporation (SHLD)
Common Shares, 2) 4 Orchard Supply Hardware Stores Corp. (OSH) Common Shares, 3) 4 Orchard
Supply Hardware Stores Corp. Series A (OSHSP) Preferred Shares, and 4) $14.73 Cash (See OCC
Information Memos #31322 and #31352).
Sears Holdings Corporation (SHLD) has announced a distribution of Sears Canada Inc. (TSX: SCC)
Common Shares. The distribution ratio is 0.428302714508407 of a share of SCC for each SHLD Common
Share held. The record date is November 1, 2012; the pay date is November 13, 2012. The Nasdaq Stock
Exchange (NASDAQ) has set October 30, 2012, as the ex-distribution date for this distribution.
Adjusted SHLD1 options will be further adjusted to reflect the distribution as described below.
NOTE: Sears Canada Inc. (SCC) is not listed for trading on a U.S exchange. The Securities
Committee has determined that a U.S. Dollar cash value equivalent for the distributed SCC shares
will be determined and the U.S. Dollar value (x 100) will be added to the cash deliverable of SHLD1
options. The cash value will be based on the SCC price from the Toronto Stock Exchange on the
close before the ex-date, converted into U.S. Dollars.
EXERCISE CONSIDERATIONS: ANY SHLD1 CALL OPTION HOLDERS WHO WISH TO ENSURE
ENTITLEMENT TO SCC SHARES, RATHER THAN THE CASH VALUE EQUIVALENT, MUST
EXERCISE THEIR OPTIONS IN ADVANCE OF THE EX-DISTRIBUTION DATE.
CONTRACT ADJUSTMENT - OPTIONS
EFFECTIVE DATE:
October 30, 2012
OPTION SYMBOL:
SHLD1 remains SHLD1
STRIKE PRICES:
No Change
NUMBER OF
CONTRACTS:
No Change
MULTIPLIER:
100 (e.g., a premium of 1.50 yields $150; a strike of 65 yields $6,500)
NEW DELIVERABLE
PER CONTRACT
SETTLEMENT
ALLOCATION:
CUSIPS:
SHLD1
1) 100 Sears Holdings Corporation (SHLD) Common Shares
2) 4 Orchard Supply Hardware Stores Corp. (OSH) Common Shares
3) 4 Orchard Supply Hardware Stores Corp. Series A (OSHSP)
Preferred Shares
4) $14.73 Cash
5) USD equivalent of 42.9032714508407 SCC Shares
SHLD:
90%
OSH:
5%
OSHSP: 5%
SHLD:
812350106
OSH:
685691404
OSHSP: 685691503
DISCLAIMER
This Information Memo provides an unofficial summary of the terms of corporate events affecting listed
options or futures prepared for the convenience of market participants. OCC accepts no responsibility for
the accuracy or completeness of the summary, particularly for information which may be relevant to
investment decisions. Option or futures investors should independently ascertain and evaluate all
information concerning this corporate event(s).
The determination to adjust options and the nature of any adjustment is made by a panel of The OCC
Securities Committee pursuant to OCC By-Laws, Article VI, Sections 11 and 11A. The adjustment panel is
comprised of representatives from OCC and each exchange which trades the affected option. The
determination to adjust futures and the nature of any adjustment is made by OCC pursuant to OCC ByLaws, Article XII, Sections 3, 4, or 4A, as applicable. For both options and futures, each adjustment
decision is made on a case by case basis. Adjustment decisions are based on information available at the
time and are subject to change as additional information becomes available or if there are material
changes to the terms of the corporate event(s) occasioning the adjustment.
ALL CLEARING MEMBERS
CATEGORY:
CONTRACT
ARE REQUESTED
ADJUSTMENT
TO IMMEDIATELY ADVISE ALL BRANCH OFFICES
AND CORRESPONDENTS ON THE ABOVE.
For questions regarding this memo, call 1-888-OPTIONS or email options@theocc.com.
Questions regarding this memo can be addressed to Member Services at (800) 544-6091. Within Canada
call (800) 424-7320.
CATEGORY:
CONTRACT ADJUSTMENT