Domino's Pizza Announces Refinancing Transaction

Domino's Pizza recently announced that certain of its subsidiaries intend to complete a recapitalization transaction, which will include the refinancing of a portion of their outstanding securitization debt with a new series of securitized debt.

• The Company's last recapitalization occurred in October 2015 (the "2015 Recapitalization"), 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 (the "2015 VFN Notes") that replaced the 2012 VFN Notes (defined below).
• The Company's prior recapitalization before the 2015 Recapitalization occurred in March 2012 with the issuance of a $1.675 billion securitized financing facility consisting of $1.575 billion of fixed rate notes (the "2012 Notes") and $100 million of variable funding notes (the "2012 VFN Notes").  At the end of the first fiscal quarter of 2017, there was approximately $910 million in outstanding principal amount of the 2012 Notes.
• The Company's subsidiaries intend to issue approximately $1.8 billion of new securitized notes (the "2017 Notes") and to use the proceeds to prepay and retire the outstanding 2012 Notes at par, to pay transaction fees and for general corporate purposes.
• The Company also expects to enter into a new $175 million variable funding note facility, which will replace the 2015 VFN Notes facility.

The consummation of the offering is subject to market and other conditions and is anticipated to close in the third quarter of 2017. However, there can be no assurance that we will be able to successfully complete the refinancing transaction on the terms described or at all.

(Source: Domino's Pizza, Inc.)