September 10, 2010 / 9:58 PM / 8 years ago

UPDATE 1-Sears Canada sets special dividend, loan to parent

* Board also approves C$400 million loan to Sears Holdings

* Issues special dividend of C$3.50 per share

TORONTO, Sept 10 (Reuters) - Retailer Sears Canada SCC.TO announced on Friday a special dividend of C$3.50 a share to be paid Sept. 24 on all common shares.

The company, which is 90.4 percent owned by parent Sears Holdings Corp (SHLD.O), also said its board of directors approved an C$800 million ($769 million) senior secured credit facility, available for five years to help fund capital expenditures, acquisitions and other general corporate needs.

In addition, a C$400 million loan will also be made to the parent company.

Sears Canada stock closed down 8 Canadian cents at C$21.42 on Friday on the Toronto Stock Exchange.

$1=$1.03 Canadian Reporting by Solarina Ho; editing by Peter Galloway

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