Domino's Pizza Intends To Issue $1.5 Bln Of New Securitized Notes

(RTTNews) - Domino's Pizza Inc. (DPZ) said that its subsidiaries intend to issue $1.5 billion of new securitized notes.

The company plans to use the proceeds to prepay and retire in full approximately $291 million in aggregate principal amount of the Company's 2017-1 Floating Rate Senior Secured Notes, Class A-2-I at par, prepay and retire in full approximately $582 million in aggregate principal amount of the Company's Series 2017-1 3.082% Fixed Rate Senior Secured Notes, Class A-2-II at par, 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.

The company expects that the subsidiaries will also enter into a new $200 million variable funding note facility, which will replace the existing $200 million variable funding note facility. As of January 3, 2021, there was approximately $42.5 million of outstanding letters of credit and no outstanding borrowings under the existing variable note funding facility.

The consummation of the note offering is anticipated to close in the second quarter of 2021.