Domino's Pizza announces recapitalization plan

May 30, 2017

Domino's Pizza, Inc. announced certain of its subsidiaries plan a recapitalization, including the refinancing of a portion of its outstanding securitization debt with a new series of securitized debt. The brand's last recapitalization took place two years ago in October 2015 with the issuance of a $1.425 billion securitized financing facility consisting of $1.3 billion of fixed rate notes and $125 million of variable funding notes.

Three years before that, the company announced the issuance of a $1.675 billion securitized financing facility with $1.575 billion of fixed rate notes and $100 million of variable funding notes. At the end of the first fiscal quarter of 2017, there was approximately $910 million in outstanding principal of the 2012 notes.
    
The company's subsidiaries want to issue approximately $1.8 billion of new securitized notes and use the proceeds to prepay and retire the outstanding 2012 notes at par, as well as pay transaction fees and for general corporate purposes. The company also expects to enter into a new $175 million variable funding note facility to replace the 2015 variable funding notes facility.

The consummation of the offering is expected to close in the third quarter of 2017. However, there can be no assurance the company will complete the refinancing transaction.


Topics: Financial Management, Financial News


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