Domino's Pizza said today it plans to issue a new securitization deal that will refinance outstanding debt tied to a $1.85 billion 2007 securitization deal.

The existing securitized financing facility consisting of $1.7 billion of fixed-rate notes and $150 million of variable funding notes. As of Jan. 1, the outstanding securitized debt balance was $1.45 billion.

Domino's intends to replace this with a new securitized financing facility, expected to consist of $1.475 billion of fixed-rate notes and $200 million of variable funding notes of which it is expected that $100 million of the variable funding notes will be funded on the closing date.

According to a Bloomberg report, Barclays Capital and JPMorgan Securities have been named joint book runners on the deal.

The new fixed-rate notes are expected to require repayment near the seventh anniversary of the closing date. Meanwhile, the new variable funding notes are expected to require repayment on or before the fifth anniversary of the closing date, with an option for up to two one-year renewals subject to certain minimum financial conditions.

The net proceeds of the new facility will be used to repay the 2007 notes in full and for general corporate purposes, which may include a special dividend to holders of common stock, other equivalent payments and stock repurchases.  

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.