Retailer rue21 Sets IPO Terms

Rue21, a Warrendale, Penn. based youth clothing retailer, has set its IPO terms to around 6.77 million common shares being offered at between $16 and $18 per share. It would have an initial market cap of approximately $435 million, were it to price at the high end of its range.

The company plans to trade on the Nasdaq under ticker symbol RUE, with BoA Merrill Lynch, Goldman Sachs and JPMorgan are serving as co-lead underwriters.

Rue21 says that it plans to use some of the proceeds to pay down debt, which totaled $29.2 million as of August 1. Apax Partners holds a 62.2% ownership stake, while BNP Paribas holds a 23.2% stake. www.rue21.com