Domino's Pizza Inc., the largest pizza company in the world based on retail sales, announced that certain of its subsidiaries intend to complete a recapitalization transaction, which will include the issuance of a new series of securitized debt under their existing securitized financing facility. The company also expects these subsidiaries to enter into a new variable funding note facility.
The Ann Arbor-based company's subsidiaries intend to issue $600 million of new securitized notes and to use the proceeds to pay transaction fees and for general corporate purposes, including distributions to holders of the company's common stock, other equivalent payments and/or stock repurchases. Domino’s expects that these subsidiaries also will enter into a new $200 million variable funding note facility, which will replace the existing $175 million variable funding note facility.
As of Sept. 8, 2019, there was approximately $48.1 million of outstanding letters of credit and no outstanding borrowings under the existing variable note funding facility.
The consummation of the note offering is subject to market and other conditions and is anticipated to close in the fourth quarter of 2019. However, there can be no assurance that the company will be able to successfully complete the recapitalization transaction on the terms described, or at all.
Founded in 1960, Domino's Pizza ranks among the world's top public restaurant brands with a global enterprise of more than 16,500 stores in over 85 markets. Domino's had global retail sales of over $13.5 billion in 2018, with nearly $6.6 billion in the U.S. and more than $6.9 billion internationally.
