Ann Arbor / MG. (dp) Domino’s Pizza Inc., the largest pizza company in the world based on global retail sales, 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 July 2017, with the issuance of a USD 1.9 billion securitized financing facility consisting of USD 300 million of floating rate notes and USD 1.6 billion of fixed rate notes and the entry into a new USD 175 million variable funding note facility (the «2017 VFN Note Facility») that replaced the 2015 VFN Notes (defined below). As of December 31, 2017, there was approximately USD 46.7 million of outstanding letters of credit and USD 128.3 million of available borrowing capacity under the 2017 VFN Note Facility.
- The Company’s prior recapitalization before the 2017 Recapitalization occurred in October 2015, with the issuance of a USD 1.425 billion securitized financing facility consisting of USD 1.3 billion of fixed rate notes and USD 125 million of variable funding notes (the «2015 VFN Notes»).
- The Company’s subsidiaries intend to issue approximately USD 825 million of new securitized notes (the «2018 Notes») and to use the proceeds to prepay and retire approximately USD 491.3 million of the outstanding 2015 Notes at par, to pay transaction fees and for general corporate purposes.
The consummation of the offering is subject to market and other conditions and is anticipated to close in the second quarter of 2018. However, there can be no assurance that we will be able to successfully complete the refinancing transaction on the terms described or at all.
