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Sears Bonds Drop Below Par After $279 Million Quarterly Loss

Bonds of Sears Holdings Corp. (SHLD) plunged to less than par after the retailer controlled by hedge-fund manager Edward Lampert reported a $279 million first-quarter loss.

The company’s $987.4 million of 6.625 percent second-lien debt dropped 2.75 cents to 98 cents on the dollar to yield 7.08 percent as of 10:24 a.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The notes had reached 101.25 two weeks ago from as low as 76 cents on the dollar in December 2011.

To contact the reporter on this story: Charles Mead in New York at cmead11@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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