Jersey Mike’s Sells Debt It Can Pay Down With IPO Proceeds

Sandwich chain Jersey Mike’s Subs sold about $760 million of bonds Friday and retained the right to repay about half of the principal early with proceeds from a future initial public offering, an unusual feature for the debt.

An IPO may be coming relatively soon for the company: Jersey Mike’s is working with a trio of banks to complete an offering as soon as the third quarter, Bloomberg reported on Wednesday. The company, owned by private equity firm Blackstone, is looking to raise as much as $1 billion in the equity sale.