The restaurant operator announced that it will price its 18 million share secondary offering at $24.50 a share. The offering is expected to close on March 10, 2014. Bloomin' Brandssaid the underwriters will have a 30-day option to purchase up to 2.7 million additional shares of common stock from certain selling stockholders.
The underwriting group for the offering is led by Bank of America-Merrill Lynch, Morgan Stanley, JP Morgan, Deutsche Bank, and Goldman Sachs.
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TheStreet Ratings team rates BLOOMIN' BRANDS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLOOMIN' BRANDS INC (BLMN) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: