Domino's Pizza Inc. today announced that some of its subsidiaries intend to refinance their outstanding securitization debt. In April 2007, certain Domino's subsidiaries entered into a $1.85 billion securitized financing facility consisting of $1.7 billion of fixed rate notes and $150 million of variable funding notes.
According to a company press release, as of June 19, 2011, the outstanding securitized debt balance was $1.45 billion. Domino's intends to replace this with a new securitized financing facility, expected to consist of $1.525 billion of fixed rate notes and $100 million of variable funding notes.
The new fixed rate notes are expected to require repayment near the seventh anniversary of the closing date, and the new variable funding notes are expected to require repayment on or before the fifth anniversary of the closing date, with an option for one to two 1-year renewals subject to certain conditions.
The net proceeds of the new facility will be used to repay the 2007 notes in full and for general corporate purposes. The consummation of the notes offering is subject to market and other conditions and is anticipated to close in the third quarter of 2011.