Jersey Mike's Subs is raising approximately $760 million through a bond offering. The sandwich chain, owned by Blackstone, has a unique provision allowing repayment of about half the principal using proceeds from a future initial public offering. This move comes as the company prepares for an IPO, potentially as early as the third quarter of this year.

The bond offering utilizes securitized "whole business" securities, where Jersey Mike's pledges its revenue-generating assets as collateral. This is a common structure for restaurant chains. The bond sale proceeds will refinance existing whole business bonds from 2019 and 2021. This bond issuance follows a previous debt offering.

The upcoming IPO is expected to raise up to $1 billion in equity. The private equity firm Blackstone is likely aiming to capitalize on the current market appetite for quick-service restaurant brands. Investors will be watching the IPO closely for a gauge of market sentiment regarding the fast-casual dining sector.