From Home Furnishing Business
IMC Files IPO
International Market Centers filed Monday with the Securities & Exchange Commission for an initial public offering to raise as much as $200 million.
IMC is a real estate investment trust, backed by Bain Capital and Oaktree Capital. It is the largest owner of permanent home furnishings showroom space in North America with showrooms in High Point and Las Vegas.
The company's holding include World Market Center in Las Vegas; the International Home Furnishings Center, Showplace, Market Square, Hamilton Market, Furniture Plaza, National Furniture Mart and 300 S. Main in High Point and according to the company’s filing the buildings have 9.8 million square feet of leasable showroom space.
Since Bain’s investment in the company in 2011, Las Vegas Market has been repositioned as a regional and complement to High Point Market, according to the filing.
The Las Vegas Market January and July markets attract about 85 percent of their domestic buyers from states west of the Mississippi River. In addition, about 87 percent of the home furniture and home décor buyers that attend the Las Vegas Markets are unique relative to the High Point Markets. The company said its occupancy for home furniture permanent space has increased about 34 percent from about 1.5 million square feet from Jan. 1, 2012 to about 2 million square feet through Sept. 30.
The company said it will contribute proceeds from the offering to its operating partnership in exchange for partnership units. The operation partnership will then use the money to prepay and undetermined amount of loans under a new first lien loan; prepay in full and terminate an undetermined amount under a second term loan facility; pay an undetermined amount in principle under a revolving credit line and pay and undetermined amount in connection with prepayment in full and termination of a second lien term loan. Additional funds will be distributed to IMC to pay fees to Bain Capital and Oaktree in connection with the termination of the advisory agreement.
The filing lists the company’s total revenues for the nine-month period ended Sept. 30 as $118.8 million, and net loss of $28.3 million for the same period.
The complete filing can be found online.