Burlington Raising $1.5 Billion New Debt But Only 1/3 Goes to Bain Dividend

Earlier this week, I reported on Burlington Coat Factory’s plan to pay a dividend to its PE shareholders, namely Bain Capital. Burlington Coat Factory is raising $1.5 billion in new debt. The company is selling $500 million in unsecured notes and is in the market for a $1 billion term loan. Of the $1.5 billion, I’m hearing from a source that about $300 million will go to pay a dividend to Bain. The rest is expected to be used to repay debt. Bain acquired Burlington Coat Factory, which sells coats and women’s sportswear, in 2006 for $2.06 billion.

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