Burlington Pulls $1.5 Bln Loan Deal So Bain Dividend Is Off
Last week, I was in Dallas for the Buyouts conference and there was much talk about all the dividend recaps companies are taking. Some think all the recaps means there's a bubble in the high yield market while others believe PE firms are being smart about the payouts they're getting. There have been several dividend recaps recently, including HCA's plans to pay a $2 billion dividend to its shareholders (KKR and Bain Capital). Dunkin' Brands is also raising $2 billion to fund a $500 million dividend to its PE backers (Bain, Carlyle and Thomas H. Lee). Still, not all deals gets done. Consider Burlington Coat Factory, which is owned by Bain Capital. Burlington was planning to raise $1.5 billion in new debt, which included $500 million in notes and a $1 billion term loan. About $300 million was expected to go to Bain via dividend.
