Dunkin' Donuts parent Dunkin' Brands Inc., which also operates Baskin-Robbins, said last week some of its shareholders will sell 21 million shares of its common stock following the company's shelf registration statement filed with the Securities and Exchange Commission.
The company itself won't sell any shares or get any proceeds. Citigroup is underwriter for the offering.
Dunkin' Brands also agreed to buy back 15 million shares from the selling shareholders after the stock offer closes in a private transaction, contingent on the closing of the secondary offering.
The company also announced that it has entered in a share repurchase agreement with certain of the selling stockholders pursuant to which it intends to repurchase 15 million shares of its common stock from such selling stockholders concurrently with the closing of the offering.
The share repurchase will be effected in a private, non-underwritten transaction at a price per share equal to the price per share being paid by the underwriter to the selling stockholders. Dunkin' Brands Inc. anticipates funding the repurchase with borrowings under its recently upsized term loan facility and cash on hand. The closing of the share repurchase is contingent on the closing of the offering. The closing of the offering is not contingent on the closing of the share repurchase.
