Dunkin’ Brands Group Inc., parent company of Dunkin’ Donuts and Baskin-Robbins, filed Monday its pricing for the company’s initial public offering, which it said may raise as much as $461.3 million, above earlier estimates.
The Canton, Mass.-based company plans to sell 22.3 million shares for $16 to $18 per share, according to documents filed with the Securities & Exchange Commission. It also will give its underwriters 30 days to buy an additional 3.3 million shares, meaning if all shares are purchased, the IPO could fetch between $409.4 million and $460.6 million.
The company has not yet set a date for the offering. Dunkin’ plans to trade on the NASDAQ Global Stock Market under the ticker symbol DNKN.
Dunkin’ first announced its IPO plans in May, and estimated a $400 million offering.
The company is currently owned by private-equity groups Bain Capital, The Carlyle Group and Thomas H. Lee Partners, who bought the company for about $2.4 billion in 2006.
After the IPO, there will be 126.4 million shares of common stock in Dunkin’ Brands, the majority — 76.2 percent — owned by existing shareholders, the company said.
In its SEC filing, Dunkin’ Brands said that, based on an offering price at $17 per share, it expected to raise a net $348.4 million after underwriting discounts, commissions and expenses. It plans to use the funds to pay high interest senior notes due in 2018. Remaining proceeds would be used for working capital and “general corporate purposes.”
Dunkin’ Brands said it owes $475 million in senior notes.
The parent company of 9,760 Dunkin’ Donuts and 6,433 Baskin-Robbins, almost all franchised, reported revenue of $139.2 million in the quarter ended March 26, up 9.3 percent from the same quarter a year earlier. It booked a net loss of $1.7 million, compared to a $5.9 million profit a year earlier, due to one-time debt restructuring, the company reported.
At the time it announced those results Dunkin’ Brands credited new menu items for the rise in sales.
Contact Bret Thorn at [email protected].
Follow him on Twitter: @foodwriterdiary
