It’s time to make some profit.
On Wednesday, shares of Dunkin’ Brands opened at $25. The stock closed at $27.99 on the Nasdaq, an increase of $8.99, or 47.32% above its offer price. Volume was roughly 45.4 million.
Late yesterday, Dunkin’ Brands raised nearly $424 million after selling 22.3 million shares at $19 each (this was up by $1 from the original guidance of $16 to $18 a share). JP Morgan, Barclays Capital and Morgan Stanley are joint book-runners on the deal.
Dunkin’ Brands, which is owned by Bain Capital, the Carlyle Group and Thomas H. Lee, is highly leveraged, with about $1.9 billion in long-term debt. In 2005, the three PE firms acquired the company in a $2.4 billion deal. It’s unclear how much equity the PE firms invested but the buyout shops put in equal amounts. Since 2005, the PE firms have received two dividends, according to SEC filings. In November 2007, the sponsors received $90 million in a payout; another $500 million came in December 2010, according to the filings.