Dunkin' Brands (Dividend Recap)

exited

Restaurant — Bain Capital / Carlyle / Thomas H. Lee

Deal Terms

Entry Year2006

Entry EV$2.425B

Entry Multiple7x

Leverage5x

Debt Amount$2B

Outcome

Exit Year2012

Risk Metrics

LTV (est.)82%

Debt / EV0.82x

Notes

Bain/Carlyle/THL consortium bought from Pernod Ricard for $2.425B (2006). $500M dividend recap: raised $2B via $1.35B loan + $625M notes to pay PE owners. IPO'd July 2011. Full exit by Aug 2012. Each firm earned ~$600M profit — 3x initial investment. $1.8B total PE profit. Dunkin' absorbed the recap debt and had to deleverage using IPO proceeds. Franchisees bore the operational burden.

Sponsor

Carlyle Group$435B AUM