ANN ARBOR, Mich., Oct. 30,
2019 /PRNewswire/ -- Domino's Pizza, Inc. (NYSE:
DPZ), the largest pizza company in the world based on retail
sales, today announced that certain of its subsidiaries intend to
complete a recapitalization transaction, which will include the
issuance of a new series of securitized debt under their existing
securitized financing facility. The Company also expects these
subsidiaries to enter into a new variable funding note
facility.
The Company's subsidiaries intend to issue $600 million of
new securitized notes (the "2019 Notes") and to use the proceeds to
pay transaction fees and for general corporate purposes, including
distributions to holders of the Company's common stock, other
equivalent payments and/or stock repurchases. The Company expects
that these subsidiaries also will enter into a new $200 million variable funding note facility,
which will replace the existing $175
million variable funding note facility. As of September 8, 2019, there was approximately
$48.1 million of outstanding letters
of credit and no outstanding borrowings under the existing variable
note funding facility.
The consummation of the note offering is subject to market and
other conditions and is anticipated to close in the fourth quarter
of 2019. However, there can be no assurance that the Company will
be able to successfully complete the recapitalization 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 2019 Notes, the variable
funding 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 largest pizza company in the world
based on retail sales, with a significant business in both delivery
and carryout pizza. It ranks among the world's top public
restaurant brands with a global enterprise of more than 16,500
stores in over 85 markets. Domino's had global retail sales of over
$13.5 billion in 2018, with
nearly $6.6 billion in the U.S.
and more than $6.9 billion
internationally. In the third quarter of 2019, Domino's had global
retail sales of over $3.2 billion, with over $1.6 billion in the U.S. and over
$1.6 billion internationally.
Its system is comprised of independent franchise owners who
accounted for 98% of Domino's stores as of the third quarter of
2019. Emphasis on technology innovation helped Domino's achieve
more than half of all global retail sales in 2018 from digital
channels. In the U.S., Domino's generates over 65% of sales via
digital channels and has developed several innovative ordering
platforms, including those developed for Google Home, Facebook
Messenger, Apple Watch, Amazon Echo and Twitter – as well as
Domino's HotSpots®, an ordering platform featuring over
200,000 unique, non-traditional delivery locations. In
late 2017, Domino's began an industry-first test of self-driving
vehicle delivery, and in June 2019
announced a partnership with Nuro, furthering its exploration and
testing of autonomous pizza delivery.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995:
This press release contains various forward-looking statements
about the Company within the meaning of the Private Securities
Litigation Reform Act of 1995 (the "Act") that are based on current
management expectations that involve substantial risks and
uncertainties which could cause actual results to differ materially
from the results expressed in, or implied by, these forward-looking
statements. The following cautionary statements are being made
pursuant to the provisions of the Act and with the intention of
obtaining the benefits of the "safe harbor" provisions of the Act.
You can identify forward-looking statements by the use of words
such as "anticipates," "believes," "could," "should," "estimates,"
"expects," "intends," "may," "will," "plans," "predicts,"
"projects," "seeks," "approximately," "potential," "outlook" and
similar terms and phrases that concern our strategy, plans or
intentions, including references to assumptions. These
forward-looking statements address various matters including the
Company's planned recapitalization transactions. While we believe
these expectations and projections are based on reasonable
assumptions, such forward-looking statements are inherently subject
to risks, uncertainties and assumptions. Important factors that
could cause actual results to differ materially from our
expectations are more fully described in our filings with the
Securities and Exchange Commission, including under the section
headed "Risk Factors" in our Annual Report on
Form 10-K. Actual results may differ materially from
those expressed or implied in the forward-looking statements as a
result of various factors, including but not limited to our
substantial increased indebtedness as a result of our
recapitalization transactions and our ability to incur additional
indebtedness or refinance or renegotiate key terms of that
indebtedness in the future, our future financial performance and
our ability to pay principal and interest on our indebtedness. In
light of these risks, uncertainties and assumptions, the
forward-looking events discussed in this press release might not
occur. All forward-looking statements speak only as of the
date of this press release and should be evaluated with an
understanding of their inherent uncertainty. Except as required
under federal securities laws and the rules and regulations of the
Securities and Exchange Commission, or other applicable law, we do
not undertake, and specifically disclaim, any obligation to
publicly update or revise any forward-looking statements to reflect
events or circumstances arising after the date of this press
release, whether as a result of new information, future events or
otherwise. You are cautioned not to place considerable reliance on
the forward-looking statements included in this press release or
that may be made elsewhere from time to time by, or on behalf of,
us. All forward-looking statements attributable to us are expressly
qualified by these cautionary statements.
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SOURCE Domino's Pizza, Inc.