(Bloomberg) -- Domino's Pizza Inc. sold $1.32 billion of bonds backed by most of its assets to refinance its debt.
The pizza chain offered a two-part fixed-rate bond, with each tranche about $500 million. One of the portions, with a weighted average life of 6.7 years, sold at a yield of 5.251% or 1.25 percentage point more than benchmark rates.
Domino's also raised $320 million through a variable funding note facility, not offered to investors. Barclays Plc is leading the transaction, joined by Guggenheim Securities LLC.
In a whole-business securitization such as this one, a company often borrows against substantially all of its revenue-generating assets. Asset-backed securities are a popular funding source for businesses that tend to heavily franchise their operations. Other companies that have borrowed in this market recently include sandwich shops Jersey Mike's and Subway.
Domino's intends to use the proceeds to refinance $742 million of debt it priced in 2015 and $402.7 million of notes it issued in 2018, according to a statement.
There have been six whole-business bond offerings so far this year totaling over $3.1 billion before Domino's, according to data compiled by Bloomberg News. That's compared with 19 such issuances totaling $13 billion in the whole of 2024.
--With assistance from Charles Williams.
(Updates throughout to reflect that the deal has priced.)
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