Chuy’s Holdings Inc., the parent company of Tex-Mex chain Chuy’s, filed with securities regulators a pending initial public offering of stock to raise up to $75 million.
According to documents filed with the U.S. Securities and Exchange Commission on Friday, Austin, Tex.-based Chuy’s, which operates 27 restaurants, intends to use the net proceeds to pay a mandatory loan and other costs associated with its new $64 million senior credit facility, which the company closed in May.
Chuy’s also said it would pay a $2 million fee to terminate the advisory agreement it holds with its majority investor, private equity firm Goode Partners LLC. Remaining net proceeds will be used for working capital and general corporate purposes, as well as the operation and growth of the business, the company said.
In its filing, Chuy’s did not disclose the pricing or quantity of shares the company expects to sell.
For the year ended December 2010, Chuy’s booked revenue of $94.9 million and net income of $3.3 million. A year earlier, the company tallied revenue of $69.4 million, and net income of $2.7 million. Chuy’s corporate debt, as of March 27, totaled $30.8 million.
Chuy’s was founded in Austin in1982 by Michael Young and John Zapp and currently operates in Texas, Alabama, Tennessee, Kentucky and Indiana. It plans to open four additional locations by the end of this year.
Contact Charlie Duerr at [email protected].