Where Will the Burger King IPO Proceeds Go? (BKC)

In December 2002, Burger King Corporation (BKC) was acquired by private equity funds controlled by Texas Pacific Group, Bain Capital Partners and the Goldman Sachs Funds. Now the company is doing an IPO. But the cash from the IPO won't go to the company. Here's the key data point from the Burger King IPO prospectus:

We will receive net proceeds from this offering of approximately $374 million assuming an initial public offering price of $16.00 per share, the midpoint of the range set forth on the cover page of this prospectus, and after deducting underwriting discounts and commissions and estimated offering expenses. A $1.00 increase (decrease) in the assumed initial public offering price of $16.00 per share would increase (decrease) the net proceeds to us from this offering by $24 million, assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. We expect to use almost all of the net proceeds to repay $350 million in outstanding amounts under the term loan A and the term loan B-1 of our senior secured credit facility that were incurred to finance, in large part, the February 2006 dividend of $367 million, which was paid principally to the private equity funds controlled by the sponsors and members of senior management with the balance used for general corporate purposes. As a result, almost all of the proceeds of this offering will not be invested in our business.

Preliminary prospectus here.