Another Secondary Offering For Del Frisco's


Lone Star Fund keeps cashing out on its Del Frisco’s investment. The private equity firm is selling 5 million more shares at of the steak chain at $21.84 a share, according to a registration statement filed with the Securities and Exchange Commission this morning. Its Del Frisco’s second such offering this year.

The Dallas-based chain went public at a tough time last year—its stock price actually fell on the day of its IPO—but it has since recovered nicely as investors have taken a liking to restaurants, and as Del Frisco’s numbers have caught their eye. The company’s revenues grew 17 percent last year, for instance, while net income grew 53 percent.

AT $21.84, Lone Star would raise $109.2 million, but it could raise as much as $125.6 million if underwriters exercise their option to purchase additional shares. The offering will reduce Lone Star’s ownership in Del Frisco’s from 55 percent to 34 percent. It will own just less than 8.1 million shares of the upscale steak chain.

Lone Star had owned 75.6 percent of Del Frisco’s stock before the previous offering in March.

Deutsche Bank Securities, Piper Jaffray and Wells Fargo are the lead underwriters for the offering. Del Frisco’s stock this morning is up less than 2 percent, at $22.58 a share.

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