ANN ARBOR, Mich., Sept. 28, 2015 /PRNewswire/ -- Domino's Pizza,
Inc. (NYSE: DPZ), the recognized world leader in pizza
delivery, today 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 last recapitalization occurred in April 2012, with the issuance of a $1.675 billion securitized financing facility
consisting of $1.575 billion of fixed
rate notes (the "2012 Notes") and $100
million of variable funding notes.
- At the end of the third fiscal quarter of 2015, there was
approximately $1.52 billion in
outstanding principal amount of 2012 Notes.
- The Company's subsidiaries intend to issue approximately
$1.5 billion of new fixed rate notes
and use the proceeds to prepay and retire 35% of the 2012 Notes at
par, for approximately $551 million,
to pay transaction fees and for general corporate purposes.
- The Company also expects to enter into a new $125 million variable funding note facility,
which will replace its existing $100
million variable funding note facility.
The consummation of the offering is subject to market and other
conditions and is anticipated to close in the fourth quarter of
2015. However, there can be no assurance that we will be able to
successfully complete the refinancing transaction, on the terms
described or at all.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the new fixed rate notes or any
other security. The notes to be offered have not been, and will not
be, registered under the Securities Act of 1933 and may not be
offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements of the Securities Act of 1933.
About Domino's Pizza®
Founded in 1960,
Domino's Pizza is the recognized world leader in pizza delivery,
with a significant business in carryout pizza. It ranks among the
world's top public restaurant brands with a global enterprise of
more than 12,100 stores in over 80 international markets. Domino's
had global retail sales of over $8.9
billion in 2014, comprised of more than $4.1 billion in the U.S. and nearly $4.8 billion internationally. In the third
quarter of 2015, Domino's had global retail sales of over
$2.1 billion, comprised of over
$1.0 billion in the U.S. and over
$1.1 billion internationally. Its
system is comprised of independent franchise owners who accounted
for nearly 97% of Domino's stores as of the third quarter of 2015.
Emphasis on technology innovation helped Domino's generate
approximately 50% of U.S. sales from digital channels at the end of
2014, and reach an estimated run rate of $4.0 billion annually in global digital sales.
Domino's features an ordering app lineup that covers nearly 95% of
the U.S. smartphone market and has recently introduced several
innovative ordering platforms, including Ford SYNC®,
Samsung Smart TV® and Pebble Watch, as well as Twitter
and text message using a pizza emoji. In June 2014, Domino's debuted voice ordering for
its iPhone® and Android™ apps, a true
technology first within traditional and e-commerce retail.
Order – www.dominos.com
Mobile – http://mobile.dominos.com
Digital Info – anyware.dominos.com
Company Info – biz.dominos.com
Twitter – http://twitter.com/dominos
Facebook – http://www.facebook.com/dominos
YouTube – http://www.youtube.com/dominos
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995:
This press release contains
forward-looking statements. You can identify forward-looking
statements because they contain words such as "believes,"
"expects," "may," "will," "should," "seeks," "approximately,"
"intends," "plans," "estimates," or "anticipates" or similar
expressions that concern our strategy, plans or intentions. These
forward-looking statements relating to our anticipated
profitability, estimates in same store sales growth, the growth of
our international business, ability to service our indebtedness,
our future cash flows, our operating performance, trends in our
business and other descriptions of future events reflect the
Company's expectations based upon currently available information
and data. However, actual results are subject to future risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by such forward-looking statements.
The risks and uncertainties that could cause actual results to
differ materially include: the level of our long-term and other
indebtedness as well as our ability to complete the proposed
refinancing on the terms described or at all; uncertainties
relating to litigation; consumer preferences, spending patterns and
demographic trends; the effectiveness of our advertising,
operations and promotional initiatives; the strength of our brand
in the markets in which we compete; our ability to retain key
personnel; new product, digital ordering and concept developments
by us, and other food-industry competitors; the ongoing level of
profitability of our franchisees; and our ability and that of our
franchisees to open new restaurants and keep existing restaurants
in operation; changes in operating expenses resulting from changes
in prices of food (particularly cheese), labor, utilities,
insurance, employee benefits and other operating costs; the impact
that widespread illness or general health concerns may have on our
business and the economy of the countries where we operate; severe
weather conditions and natural disasters; changes in our effective
tax rate; changes in foreign currency exchange rates; changes in
government legislation and regulations; adequacy of our insurance
coverage; costs related to future financings; our ability and that
of our franchisees to successfully operate in the current credit
environment; changes in the level of consumer spending given the
general economic conditions including interest rates, energy prices
and weak consumer confidence; availability of borrowings under our
variable funding notes and our letters of credit; and changes in
accounting policies. Important factors that could cause actual
results to differ materially from our expectations are more fully
described in our other filings with the Securities and Exchange
Commission, including under the section headed "Risk Factors" in
our annual report on Form 10-K. These forward-looking statements
speak only as of the date of this press release, and you should not
rely on such statements as representing the views of the Company as
of any subsequent date. Except as required by applicable securities
laws, we do not undertake to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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SOURCE Domino's Pizza, Inc.