Noodles & Company set the terms for its previously announced initial public offering on Monday, saying it hoped to raise up to $77.5 million.

In a filing with the U.S. Securities and Exchange Commission, the Broomfield, Colo.-based chain said it is offering 5.4 million shares of Class A common stock, which will be priced between $13 and $15 per share. The company has applied to have its stock listed on the NASDAQ Global Select Market under the symbol NDLS.

At an IPO price of $14 per share, the company would raise an estimated $67.1 million. If the underwriters’ option to purchase additional shares is exercised, net proceeds would be about $77.5 million, the company said.


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Most of the proceeds will be used to repay debt. The company’s credit facility has a maturity date of Aug. 1, 2017 and the outstanding balance was about $100.3 million as of April 2. A senior term loan has a balance of about $73.5 million, and a revolving line of credit is at $26.8 million, according to the filing.

The company said its revenue for the fiscal year ended Jan. 1, 2013 was $300 million, increasing from $256 million the prior year. Net income for the most recent year was $5.2 million, compared with $3.8 million the previous year.

Company-owned restaurants averaged about $1.2 million in sales last year, and systemwide same-store sales rose 5.4 percent.

Founded in 1995, Noodles & Company has grown to 343 restaurants, including 291 that are company owned and 52 franchise locations across 26 states and the District of Columbia.

The fast-casual concept is known for its pastas, sandwiches, salads and soups from around the world, from truffle macaroni and cheese to pad Thai, with an average check of about $8.

Noodles & Company is owned by private-equity group Catterton Partners along with Canadian pension investment board Argentia Private Investments Inc.

Morgan Stanley and UBS Investment Bank are the lead underwriters.

Contact Lisa Jennings at lisa.jennings@penton.com.
Follow her on Twitter: @livetodineout