ANN ARBOR, Mich., May 31,
2017 /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 Company's last recapitalization occurred in October 2015 (the "2015 Recapitalization"), with
the issuance of a $1.425 billion
securitized financing facility consisting of $1.3 billion of fixed rate notes and $125 million of variable funding notes (the "2015
VFN Notes") that replaced the 2012 VFN Notes (defined below).
- The Company's prior recapitalization before the 2015
Recapitalization occurred in March
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 (the "2012 VFN Notes"). At the end
of the first fiscal quarter of 2017, there was approximately
$910 million in outstanding principal
amount of the 2012 Notes.
- The Company's subsidiaries intend to issue approximately
$1.8 billion of new securitized notes
(the "2017 Notes") and to use the proceeds to prepay and retire the
outstanding 2012 Notes at par, to pay transaction fees and for
general corporate purposes.
- The Company also expects to enter into a new $175 million variable funding note facility,
which will replace the 2015 VFN Notes facility.
The consummation of the offering is subject to market and other
conditions and is anticipated to close in the third quarter of
2017. 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 2017 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 14,000 stores in over 85 international
markets. Domino's had global retail sales of nearly $10.9 billion in 2016, with more than
$5.3 billion in the U.S. and more
than $5.5 billion internationally. In
the first quarter of 2017, Domino's had global retail sales of
nearly $2.7 billion, with over
$1.3 billion in the U.S. and nearly
$1.4 billion internationally. Its
system is comprised of independent franchise owners who accounted
for over 97% of Domino's stores as of the first quarter of 2017.
Emphasis on technology innovation helped Domino's reach an
estimated $5.6 billion in global
digital sales in 2016, and has produced several innovative ordering
platforms, including Google Home, Facebook Messenger, Apple Watch,
Amazon Echo, Twitter and text message using a pizza emoji. In late
2015, Domino's announced the design and launch of the
DXP®, a purpose-built pizza delivery vehicle, as well as
Piece of the Pie Rewards™, its first digital customer loyalty
program.
Order – dominos.com
AnyWare Ordering – anyware.dominos.com
Company Info – biz.dominos.com
Twitter – twitter.com/dominos
Facebook – facebook.com/dominos
Instagram – instagram.com/dominos
YouTube – youtube.com/dominos
Please visit our Investor Relations website at biz.dominos.com
to view a schedule of upcoming earnings releases, significant
announcements and conference webcasts.
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, including the uncertainty of completing the current
proposed refinancing; 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;
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
the current proposed refinancing and 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 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dominos-pizza-announces-refinancing-transaction-300466269.html
SOURCE Domino's Pizza, Inc.