This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

The Deal: Neiman Marcus Puts IPO Wheels in Motion

NEW YORK (The Deal) - Dallas-based luxury department store chain Neiman Marcus Inc. put the wheels in motion on Monday, June 24, for a planned initial public offering, filing an S-1 with the Securities and Exchange Commission.

The IPO follows speculation that Kohlberg Kravis Roberts & Co. LP had proposed merging portfolio company Saks Inc. (SKS) with Neiman Marcus, an idea that was reportedly rejected by Neiman Marcus' owners.

Neiman Marcus is owned by private equity firms TPG Capital LP and Warburg Pincus LLC, which acquired the retailer in 2005 for about $5.1 billion.

Neiman Marcus filed to raise $100 million in the IPO, though the number is considered a placeholder until the company provides an actual price range. The S-1 provided few details, omitting how many shares the company plans to sell.

All proceeds will go to selling shareholders, not to the company, according to the S-1. After the offering, the principal shareholders will still control a majority of the voting power of Neiman Marcus' outstanding common stock, indicating that only a minority of shares will be sold in the IPO.

The underwriter for the offering is Credit Suisse AG (CS), according to the S-1 filing.

It is not clear if Neiman Marcus will pursue a dual-track process and seek a sale as it plans to go public.

The department store retailer paid its owners a dividend of nearly $443 million last year on March 30, 2012. That dividend was largely funded with $150 million drawn on a revolving credit facility as well as $433 million on Neiman Marcus' balance sheet at the time.

Neiman Marcus was able to recover from the financial crisis more rapidly than other retailers by catering to the super rich, who were quicker than middle-class consumers to spend money on luxury goods following the recession.

The company said its sales have increased from $3.9 billion to $4.5 billion over the last three years, while operating earnings have jumped from $317 million to $428 million and adjusted EBITDA has bumped up from $527 million to $623 million over the same period. Quarterly comparable revenue growth, in addition, has increased 7% on average during the same time period.

Stock quotes in this article: SKS, CS 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,501.65 -12.72 -0.08%
S&P 500 1,875.39 -4.16 -0.22%
NASDAQ 4,126.9670 -34.4910 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs