NEW YORK (TheStreet) -- Bloomin' Brands (BLMN) shares are down 1.4% to $21.05 in early market trading on Tuesday after the Outback Steakhouse restaurant parent company announced that Bain Capital would be selling 18.3 million shares of the company in a public offering.
Bain Capital along with Catterton Partners purchased Bloomin' Brands for $3.2 billion in 2006 before taking it public at $11 per share six years later in 2012.
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Bain Capital owned 36.6 million shares for a 29.2% stake in the company as of June 30, according to a Wall Street Journal analysis.
Goldman Sachs will act as the underwriter for the public offering to which all proceeds will go to the selling stockholders with none being sold by the company itself.
TheStreet Ratings team rates BLOOMIN' BRANDS INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLOOMIN' BRANDS INC (BLMN) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, poor profit margins, disappointing return on equity and generally disappointing historical performance in the stock itself."