Domino's Pizza Postpones Proposed Refinancing of Existing Securitized Debt
ANN ARBOR, Mich., Aug. 11, 2011 /PRNewswire via COMTEX/ --
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.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify forward-looking statements because they contain words such as "believes," "expects," "may," "will," "approximately," "intends," or "anticipates" or similar expressions that concern our strategy, plans or intentions. These forward-looking statements relating to the proposed refinancing of our subsidiaries' securitization indebtedness, our ability to service our indebtedness, our intentions with respect to the extensions of the interest-only period on the existing fixed rate notes, our operating performance, trends in our business and other descriptions of future events reflect management'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 ability of our subsidiaries to consummate the refinancing of their securitization indebtedness, the level of our long-term and other indebtedness; 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 and concept developments by us, such as our reformulated pizza, and other food-industry competitors; the ongoing level of profitability of our franchisees; and our franchisees' ability to open new restaurants and keep existing restaurants in operation; changes in food prices, 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 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 filings with the Securities and Exchange Commission, including under the section headed "Risk Factors" in our annual report on Form 10-K. 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.
SOURCE Domino's Pizza, Inc.