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Bain-backed Outback Steakhouse operator scales back IPO

8 Aug 2012

Bain Capital-controlled restaurant operator Bloomin’ Brands has reduced the number of shares for sale in its IPO after raising just half of an anticipated $345m, it is understood.

The company collected $176m by selling 16 million shares at $11 each, an underwriter told Reuters, despite hopes to sell 21.4 million at between $13 and $15 a share.

That offering valued equity in Bloomin’ Brands at $1.29bn, it said.

The underwriters for the deal are Bank of America Merrill Lynch, Morgan Stanley, JP Morgan, Deutsche Bank Securities and Goldman Sachs.

Bloomin’ Brands runs more than 1,200 restaurants across the US including Outback Steakhouses, Carrabba’s Italian Grill and Fleming’s Prime Steakhouse.

A preliminary filing with the US Securities and Exchange Commission in April showed the company planned to raise $300m, a figure it upped to $345m several weeks later.

A separate filing showed the company is leveraged to the tune of $1.8bn, which it describes as a “significant” amount of debt and lists among the risks to its strategic plan.

Bain incorporated Bloomin’ Brands alongside Catterton Management Company in October 2006, and bought Outback Steakhouse parent company OSI Restaurant Partners for about $3bn a year later.

The private equity firm owns about 66 per cent of the company, and will continue to hold a controlling interest in the company following the share sale.

Company accounts show Bloomin’ Brands had earnings before interest, taxes, depreciation and amortisation of about $359m last year, compared to $321m in 2010 and $235m in 2009.

The company’s shares are due to begin trading on Nasdaq today under the BLMN ticker.

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