July 14, 2024

DealBook: Dunkin’ Brands Looks to Raise as Much as $460 Million

Glazed donuts for sale at a Dunkin' Donuts store in West Orange, N.J.Emile Wamsteker/Bloomberg NewsGlazed donuts for sale at a Dunkin’ Donuts store in West Orange, N.J.

The owner of Dunkin’ Donuts is looking to raise as much as $460.6 million in a stock offering, the latest privately held company looking to go public.

Dunkin’ Brands, which also owns the Baskin Robbins ice cream chain, disclosed in a regulatory filing on Monday that is planned to sell 22.25 million shares in an initial public offering. Underwriters have the option to sell an additional 3.34 million shares if demand warrants.

The estimated price range is $16 to $18 a share. At the top end of the offering range, Dunkin’ Brands could raise as much as $460.6 million if underwriters sell the additional shares.

The company plans to use the proceeds to reduce debt.

Like many companies owned by private equity, Dunkin’ Brands has a sizable debt load, which has weighed on earnings. In March 2006, Bain Capital Partners, the Carlyle Group and Thomas H. Lee Partners acquired the company from Pernod Ricard.

After posting a loss of $269.9 million in 2008, Dunkin’ Brands returned to profitability, earning $35 million in 2009 and $26.9 million in 2010. This year has been rocky. The company reported a $1.7 million loss in the first quarter, compared with a $5.9 million profit in the period a year earlier.

JPMorgan, Barclays Capital, Morgan Stanley, Bank of America Merrill Lynch and Goldman Sachs are the lead underwriters on the deal.

Article source: http://feeds.nytimes.com/click.phdo?i=035a0fb71e077de5c6d8744dcd0f3db6

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