Late yesterday, Dunkin’ Brands raised nearly $424 million after selling 22.3 million shares at $19 each. This was up from the $16 to $18 price range originally planned.
JP Morgan, Barclays Capital and Morgan Stanley are joint bookrunners on the deal. Eleven more underwriters are on the deal, including BofA Merrill Lynch and Goldman Sachs. The underwriters have the option to buy another 3.3 million shares.
Dunkin’ is expected to trade Wednesday under the Nasdaq ticker “DNKN.”
In 2005, three PE firms — Bain Capital, Carlyle Group and Thomas H. Lee Partners–acquired Dunkin’ Brands in a $2.4 billion deal. The PE firms put in equal amounts but it’s unclear how much equity was invested. However, the shareholders have received about $590 million in dividends since then. In November 2007, the sponsors received $90 million in a payout; another $500 million came in December 2010, according to SEC filings.
Dunkin’ is highly leveraged and has about $1.9 billion in long-term debt. The company, which is offering all the shares, plans to use proceeds from the IPO to pay off debt, as well as for working capital and for general corporate purposes.
Here’s a list of Dunkin’s top shareholders:
Bain Capital is an old hand in “dining/lodging” deals. Bain, in the past, has owned Domino’s Pizza (which went public in 2004; Bain has since cashed out) and was a partial investor of Burger King (BK was sold last year to 3G Capital for $3.26 billion).
The Boston PE firm is an investor of OSI Restaurant Partners, parent of Outback Steakhouse and Fleming’s Prime Steakhouse. They also own Higa Industries, which is the master franchisee of Domino’s Pizza in Japan.
Before the IPO, Bain had about 32.9 million shares, or 31.6%, of Dunkin.’ They are not selling stock but are offering shares to underwriters via the overallotment option (the Greenshoe). Bain’s shares will fall to 31.8 million shares, or 25.2%, after the IPO (and if the Greenshoe is exercised).
At $19 a share, Bain’s 31.8 million shares are worth $604.2 million.