| Brylane, Inc. | |||
| Ticker: | BYL | 463 Seventh Avenue, 21st Floor | |
| Exchange: | New York Stock Exchange | New York, NY 10018 | |
| Industry: | Retail (SIC Code 5961) | (212) 613-9500 | |
| Type of Shares: | Common Shares | Filing Date: | 12/23/96 | |
| U.S. Shares: | 4,000,000 | Offer Date: | 2/20/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $24.00 - $26.00 | |
| Primary Shares: | 4,000,000 | Offer Price: | $24.00 | |
| Secondary Shares: | 0 | Gross Spread: | $1.68 | |
| Offering Amount: | $100,000,000 | Selling: | $1.00 | |
| Expenses: | $1,250,000 | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Merrill Lynch & Co. | Lead Manager | (212) 449-4600 |
| J.P. Morgan Securities Inc. | Co-manager | (212) 648-0517 |
| Lazard Freres & Co. | Co-manager | (212) 632-6717 |
| Issuer's Law Firm: | Riordan & McKinzie |
| Bank's Law Firm: | Skadden, Arps, Slate, Meagher & Flom |
| Auditor: | Coopers & Lybrand |
| Registrar/Transfer Agent: | ChaseMellon Shareholder Services, L.L.C. |
Dollar amounts in U.S. millions except for per share data | |||||
| 8 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 2/3/96 | 11/2/96 | 10/28/95 | 11/2/96 | ||
| Revenue: | $601.05 | $467.01 | $435.20 | Assets: | $348.34 |
| Net Income: | $17.60 | $14.76 | $11.79 | Curr Assets: | |
| EPS: | Liabilities: | $304.13 | |||
| Prior EPS: | $24.36 | $25.20 | Curr Liabilities: | ||
| Cash Flow/Oper: | $33.56 | Equity: | $44.21 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is the nation's leading specialty catalog retailer of value priced apparel. The company has established a focused portfolio of profitable catalogs that target consumers of both special and regular size apparel. Through its nationally recognized Lane Bryant and Roaman's catalogs, Brylane is the leading catalog retailer of women's special size apparel and, through its KingSize catalog, is a leading catalog retailer of men's special size apparel. Chadwick's of Boston, which the company acquired in December 1996, is the nation's largest off-price women's apparel catalog retailer, and offers a broad selection of high quality apparel at prices typically 25% to 50% below the regular prices of department and specialty retail stores. Brylane's Lerner catalog has a strong and growing presence in the regular size apparel market. In addition, the company is currently developing several new catalog concepts. For example, Brylane launched the Sue Brett catalog to serve the regular size mature women's apparel market, and Chadwick's successfully tested its Bridgewater catalog, which offers a broad assortment of regular size women's and men's classic apparel. Additionally, Brylane has expanded its customer base by marketing certain of its catalogs under the "Sears" name to customers of Sears, Roebuck and Co. under an exclusive licensing arrangement with Sears Shop at Home Services, Inc. |
| Competition |
| The retail apparel business is highly competitive. Lane Bryant, Roaman's and Woman's View compete in the sale of special size women's apparel primarily with other mail order companies, department stores and specialty retailers, including the Lane Bryant retail stores operated by The limited, Catherines Stores and United Retail Group. Brylane's principal competitors in the mail order retailing of special size women's apparel include J.C. Penney, Arizona Mail Order, Hanover Direct and Spiegel. |
| Business Plan |
| The company has successfully developed and executed its business strategy, which has placed the company in a favorable position for future growth. The fundamentals of this strategy include the following: 1) operate a portfolio of market leading catalogs; 2) offer an extensive selection of quality, value-priced apparel; 3) maintain strong sourcing capabilities and disciplined inventory control; 4) maintain highly efficient telemarketing, fulfillment and distribution operations; 5) emphasize superior customer service. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to prepay borrowings and accrued interest outstanding under the Term Loans of the Bank Credit Facility, to prepay indebtedness outstanding under the Terms Loans. |