Sears Roebuck Acceptance Corp.
List of Deals
- 1957 $50,000,000 4 5/8% debentures due 1972
- 1957 $25,000,000 4 5/8% subordinated debentures due May 1, 1977
- 1957 $50,000,000 5% debentures due July 15, 1982
The Sears Roebuck Acceptance Corporation was incorporated in Delaware in November 1956. It was formed by Sears Roebuck as a wholly owned subsidiary to engage in the financing of consumer receivables. The new corporation was intended to provide an auxiliary source of funds to meet the increase in Sears deferred payment sales. Sears Roebuck Acceptance initially confined its activities to the purchase of consumer installment receivables from Sears. Sears, however, also chose to continue its practice of selling installment receivables to banks as it had done since 1938.
In December 1956 Sears began selling debentures to raise funds in order to purchase the receivables from its parent company. By July 1957 it raised $125 million in three separate offerings.
By January 31, 1958, Sears Roebuck Acceptance held customer installment contracts from Sears Roebuck totaling $289.4 million, up 80 percent from the year before.