Dave & Buster's Entertainment, an Oak Hill-backed operator of 70 casual dining restaurants with large arcades, announced terms for its IPO on Monday. The Dallas, TX-based company plans to raise $100 million by offering 5.9 million shares at a price range of $16 to $18. At the midpoint of the proposed range, it would command a fully diluted market value of $711 million.
Oak Hill acquired Dave & Buster's for $570 million in May 2010, and will own an 81% post-IPO stake. The company originally set terms to raise $100 million in October 2012. It divides its revenue between amusement (51% of FY 2013 sales), food (34%) and beverage (15%) segments.
Total successor revenue increased 17% to $376 million for the twenty-six weeks ended August 3, 2014. Adjusted EBITDA rose 19% to $89 million (23.7% margin). Comparable store sales increased 5.2%, compared to 0.5% during the prior year period. After adjusting for its use IPO proceeds to pay down debt, the company had $438 million of total debt at quarter-end (2.9x LTM EBITDA).
Dave & Buster's Entertainment, which was founded in 1982 and booked $690 million in predecessor sales for the 12 months ended July 31, 2014, plans to list on the NASDAQ under the symbol PLAY. Jefferies, Piper Jaffray, William Blair, Raymond James and Stifel are the joint bookrunners on the deal. It is expected to price during the week of October 6, 2014.
