LRI Holdings Inc., parent company to the 211-unit Logan's Roadhouse casual-dining chain, filed for a $200 million initial public offering with securities regulators on Monday.
LRI Holdings is an affiliate of private-equity firms Bruckmann, Rosser, Sherrill & Co., Black Canyon Capital LLC and Canyon Capital Advisors LLC, which together acquired the chain in 2006 for $486 million from the parent company of Cracker Barrel Old Country Store, which was then called CBRL Group Inc.
Following the pending IPO, Bruckmann, Rosser, Sherrill, Black Canyon Capital and Canyon Capital Advisors will retain a controlling interest in LRI, the company said.
In a prospectus filed with the Securities and Exchange Commission Monday, LRI did not disclose how many common shares would be offered or provide a per-share price range. It also has not set a time frame for the offering. The company said it will trade on the NASDAQ exchange under the LGNS ticker.
LRI said in its filing that it would use proceeds from the IPO to pay down debt associated with its 2006 acquisition; redeem $64.5 million in preferred stock; pay fees to Bruckmann, Rosser, Sherrill & Co. and Black Canyon "in connection with a termination of the management and consulting services agreement"; and pay expenses associated with the public offering.
If completed, Logan's IPO would mark the first time in years that a major restaurant company went public, following an IPO in 2007 by Einstein Noah Restaurant Group Inc.
LRI said Logan's Roadhouse had outperformed many of its peers in the casual-dining segment and noted that the "moderately priced roadhouse concepts remain underpenetrated" in the restaurant industry.
The company said it plans to open 15 corporate Logan's Roadhouse locations in fiscal 2011 and expects to continue growing at an annual rate of 10 percent.
For the 39 weeks ended May 2, LRI booked net income of $6.2 million, or $6.39 per share, compared with a year-ago loss of $10.7 million, or $11.06 a share. Revenue rose 3 percent to $416 million for the 39 weeks.
In its most recent quarter, same-store sales at Logan's rose 1.3 percent, LRI said.
Based in Nashville, Tenn., LRI is led by president and chief executive G. Thomas Vogel. As of May, the company had 185 company-operated restaurants and 26 franchised locations, mostly in the Southeast and Southwestern parts of the country.
Elissa Elan contributed to this report.
Contact Molly Gise at [email protected].
