Post by back to *pea*ality on Jun 27, 2014 12:52:23 GMT
The Michaels Companies, the arts and crafts retailer that has spent nearly eight years in private ownership, is ready to make its public markets debut.
Shares of Michaels were priced on Thursday evening at $17 each, the bottom of an expected range, according to two people briefed on the matter.
At that price, the company has a market value of $3.45 billion. It raised about $472 million in the offering, and the shares are set to begin trading on Friday on the Nasdaq stock market, under the symbol MIK.
The offering is the culmination of the company’s long journey to Wall Street. Taken over in 2006 by two private equity firms, Michaels sought to go public in 2012. But those plans were put on hold when the chief executive, John B. Menzer, suffered a stroke and subsequently stepped down.
Michaels plans to use the money raised in the I.P.O. to help it pay down its considerable debt, which stood at $3.7 billion as of May 3. Its private equity owners, however, have already been paid.
Bain Capital and the Blackstone Group, which principally own the company, collected a $714 million dividend last year, financed by debt that Michaels issued after a corporate reorganization. The two firms did not sell shares in the I.P.O. and together will own about 80 percent of the public coLink to full article
Shares of Michaels were priced on Thursday evening at $17 each, the bottom of an expected range, according to two people briefed on the matter.
At that price, the company has a market value of $3.45 billion. It raised about $472 million in the offering, and the shares are set to begin trading on Friday on the Nasdaq stock market, under the symbol MIK.
The offering is the culmination of the company’s long journey to Wall Street. Taken over in 2006 by two private equity firms, Michaels sought to go public in 2012. But those plans were put on hold when the chief executive, John B. Menzer, suffered a stroke and subsequently stepped down.
Michaels plans to use the money raised in the I.P.O. to help it pay down its considerable debt, which stood at $3.7 billion as of May 3. Its private equity owners, however, have already been paid.
Bain Capital and the Blackstone Group, which principally own the company, collected a $714 million dividend last year, financed by debt that Michaels issued after a corporate reorganization. The two firms did not sell shares in the I.P.O. and together will own about 80 percent of the public coLink to full article
