Domino's Pizza Inc. said some of its subsidiaries will complete a recapitalization transaction to refinance a portion of their outstanding securitization debt through a series of securitized debt, while the Ann Arbor, Michigan-based company also expects the same subsidiaries will enter into a new variable funding note facility, a news release said.

The subsidiaries expect to issue $1.5 billion of securitized notes, with the proceeds being used to:

  • Prepay and fully retire approximately $291 million in aggregate principal of Domino's 2017-1 floating rate senior secured notes, Class A-2-I at par.
  • Prepay and fully retire approximately $582 million in aggregate principal amount of Domino's Series 2017-1 3.082% fixed rate senior secured notes, Class A-2-II at par.
  • Pay transaction fees and general corporate purposes, including distributions to stockholders, other equivalent payments and/or stock repurchases. T

Domino's expects these 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.

Subject to conditions, the note offering should close in the second quarter of 2021. Domino's ranks among the world's top public restaurant brands with a global enterprise of more than 17,600 stores in over 90 markets.

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