Bloomin' Brands Inc., which operates five casual dining chains, including Outback and Carrabba's Italian Grill, set a price range for its initial public offering of 21 million shares at $13 to $15, and is scheduled to trade on the Nasdaq Aug. 8 under the symbol BLMN. BofA Merrill Lynch, Morgan Stanley, J.P. Morgan, Deutsche Bank Securities and Goldman Sachs are the joint bookrunners on the deal.
The company also operates the Bonefish Grill, Fleming's Prime Steakhouse, and a joint venture in Roy's, which features Pacific rim cuisine. All together, Bloomin' Brands owns 1,247 restaurants and has 195 more operating under franchise or joint ventures.
Outback holds the No. 1 U.S. market position in the steak category, while Carrabba's and Bonefish Grill each holds the No. 2 spot in their respective categories--Italian and seafood--based on 2011 calendar year sales, according to Technomic Inc.
Bloomin' Brands offering will be the third restaurant IPO in as many weeks. On Tuesday, budget Tex-Mex chain Chuy's Holdings Inc. (CHUY) rose 15.8% during its debut; a second offering from high-end steakhouse Del Frisco's Restaurant Group is expected to trade Friday.
In the first quarter, restaurant sales at Bloomin' Brands rose 5.3% to $1.05 billion on higher customer traffic and menu prices, and it reported net income of $50 million, down from $55 million in the same period a year earlier. Comparable restaurant sales at its four core domestic restaurants--excluding its joint venture in Roy's--rose 5.2%.
In 2011, the company's sales rose 0.6% to $3.8 billion as its four core brands reported 4.9% same-restaurant sales growth in the U.S., and net income nearly doubled to $100 million compared to 2010.
The company plans to use proceeds from the offering to retire outstanding debt due 2015, as well as for other corporate purposes. The company had about $248.1 million of principal from senior notes outstanding at the end of last year. Its total indebtedness stood at about $2.1 billion.
The casual-dining company has carried a heavy debt load since its predecessor accepted a roughly $3 billion bid from private-equity firms Bain Capital LLC and Catterton Management Co. in 2007.
Bain Capital currently holds a roughly 66% stake in the company, while funds affiliated with Catterton hold about 14%.
The company plans to sell 10.7 million shares in the IPO, while selling stockholders are looking to sell 10.7 million shares. The largest seller is Bain, which will continue to hold a 54% stake post-IPO.
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