Domino's Pizza postpones proposed early refinancing of its existing securitized debt due to volatility in financial markets
ANN ARBOR, Michigan
August 11, 2011
– Domino's Pizza, Inc.(NYSE: DPZ), the recognized world leader in pizza delivery, today announced that it is postponing the proposed early refinancing of its existing securitized debt due to the volatility in the financial markets. Domino's existing securitized debt requires interest-only payments until April 2012 and can be extended on an interest-only basis until April 2014 through two one-year extensions if Domino's meets certain requirements, which it currently meets. The Company expects to maintain the flexibility to take advantage of these interest-only periods. The existing securitized debt includes a prepayment penalty if refinanced prior to January 2012. In the meantime, Domino's will continue to monitor the financial markets.
In April 2007, Domino's entered into a $1.85 billion securitized financing facility consisting of $1.7 billion of fixed rate notes and $150 million of variable funding notes. As of June 19, 2011, its current outstanding securitized debt was $1.45 billion, as the Company utilized its free cash flow to repurchase debt in the open market.
About Domino's Pizza®
Founded in 1960, Domino's Pizza is the recognized world leader in pizza delivery. Domino's Pizza is listed on the NYSE under the symbol "DPZ." As of the end of the second quarter of 2011, through its primarily locally-owned and operated franchised system, Domino's Pizza operated a network of 9,436 franchised and company-owned stores in the United States and more than 70 international markets.