May 21 Casual dining chain Cheddar's Casual Cafe
has filed confidentially for an initial public offering and has
selected Morgan Stanley and Piper Jaffray to lead its IPO,
according to three sources familiar with the situation.
Texas-based Cheddar's, owned by private equity firms
Catterton Partners and Oak Investment Partners, could see an IPO
come late in the second quarter, according to one of the
sources. It would raise around $100 million for the company, a
second source said.
A Cheddar's IPO comes amid a flurry of offerings from other
private equity-backed restaurant chains.
Last week, Apollo Management -owned CKE Restaurants
filed for a $100 million IPO. Bloomin' Brands -- the parent
company of Outback Steakhouse, which is backed by Bain Capital
and Catterton Partners -- also filed for a $345 million IPO in
Other restaurants in the IPO pipeline include Del Frisco's
Restaurant Group LLC and Tex-Mex chain Chuy's Holdings
Cheddar's, Catterton Partners and Morgan Stanley declined to
comment. Oak Investment Partners and Piper Jaffray could not be
reached for comment.
The confidential filing is a new provision under the JOBS
Act, which allows companies with less than $1 billion in revenue
to file their registration statement with the Securities and
Exchange Commission out of the public eye.