NEW YORK (The Deal) -- There's a bright spot in the recent tales of department store woes, and that's the turnaround of a retailer all but written off during the recession: Burlington Stores.
The discount store chain, which is based in the New Jersey town that gave the company its name, set the terms for its initial public offering Sept. 19, saying in a regulatory filing that it plans to offer about 13.3 million shares of its common stock at a price range of $14 to $16 per share.
At the midpoint of that range, the company would raise nearly $200 million, bringing the retailer's market cap to nearly $1.1 billion. That's doesn't include the underwriter's option to buy another two million shares.
Burlington expects to use proceeds of nearly $182 million toward paying off about $171 million in debt. As of Aug. 3, the company had nearly $1.7 billion in long-term debt and about $33 million in cash and cash equivalents, giving the retailer an enterprise value of about $2.8 billion.
A successful IPO could eventually mean a hefty payout to private equity backer Bain Capital, which acquired the company in 2006 for $2.06 billion, including a small amount of debt.
The firm has already made back its investments after it sunk $470 million into the leveraged buyout and was paid $600 million in dividends.
If the underwriters' exercise their option in full, the private equity firm's 93.3% stake for about 54.4 million shares will become 73.7%. At the midpoint of the price range, that would give Bain an additional unrealized gain of $816 million.