Fitness financials: NYSE warns Nautilus about possible de-listing, plus Sears

Nautilus said it received a warning that its shares could be de-listed from the New York Stock Exchange if it cannot increase its market capitalization or shareholder equity. Plus, Sears to offer $1.25 billion in notes privately.
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NYSE warns Nautilus about possible de-listing

Nautilus (NYSE: NLS) said it received a warning that its shares could be de-listed from the New York Stock Exchange if it cannot increase its market capitalization or shareholder equity.

Stocks on the NYSE are required to maintain an average market capitalization of at least $50 million over any 30-day period, or they must have at least $50 million in total shareholder equity. Nautilus received a notification from the NYSE that it is not in compliance with those rules.

The company's market capitalization was $39.7 million as of the end of trading on Sept. 28, when its shares closed at $1.29. Nautilus had about 30.7 million shares outstanding during the second quarter.

Nautilus said it has 45 days to send the NYSE a plan demonstrating that it will be able to regain compliance within 18 months. The exchange will take up to 45 days to review the plan and decide if Nautilus has shown it will be able to comply with the rules.

If the NYSE approves the plan, it will monitor Nautilus, and its shares would continue to be listed on the NYSE during that 18-month period. If it rejects the plan, the company will transition to another stock exchange.

The plan includes progress updates with its new third-party consumer credit finance provider, GE Money Bank. Since starting the new program with GE Money Bank, Nautilus said it has already seen incremental improvement in credit approval rates and that it expects this trend to continue and to contribute to improved operating results.

Sears to offer $1.25 billion in notes privately

Sears Holdings (Nasdaq: SHLD) said it will sell $1 billion of its senior secured notes with an interest rate of 6 percent, due in 2018, in a private offering.

It 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.

--Compiled by Wendy Geister

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