Cara Restaurants Raises C$200 Million in IPO

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Cara Operations Ltd., a Canadian restaurant company with brands including Swiss Chalet and Harvey’s, raised C$200.1 million ($158.2 million) in its initial public offering, according to sale documents.

Cara sold 8.7 million subordinate voting shares for C$23 each, within its marketed range of C$22 to C$24 a share, according to the documents. The price gives Cara a market value of about C$1.1 billion based on 47.6 million shares outstanding.

The Vaughan, Ontario-based company, which will trade on the Toronto Stock Exchange under the symbol CAO, will use the proceeds to pay down debt, according to filings.

Cara, owned by members of Canada’s Phelan family and Toronto-based Fairfax Financial Holdings Ltd., has 837 restaurants across Canada and 10 brands including Milestones, Kelsey’s, Bier Markt and East Side Mario’s, according to filings. Fairfax will hold about 42 percent of the outstanding shares and the Phelan family will have 37 percent after the deal closes, the filing said.

Bank of Nova Scotia, Bank of Montreal and Royal Bank of Canada led a group of banks on the sale, which is expected to close around April 10. The banks have the option to sell an additional 15 percent of the offering after the close, which would raise the total sale to C$230.1 million.

A message left with Cara’s public affairs office wasn’t immediately returned.

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