Domino’s Pizza, Inc. (NASDAQ: DPZ) has announced its intention to undergo a refinancing transaction, which involves issuing $1.0 billion of new securitized notes (the "2025 notes") and entering into a new $320 million variable funding note facility. The company plans to use the proceeds, together with approximately $150 million of cash on hand, to prepay and retire a significant portion of its existing debt.
Specifically, the company aims to retire $742.0 million of its 2015-1 fixed rate senior secured notes, class A-2-II, $402.7 million of its 2018-1 fixed rate senior secured notes, class A-2-I, as well as any outstanding principal amount of its 2021-1 and 2022-1 variable funding notes. Additionally, the company expects to pay transaction fees and expenses from the proceeds of the new securitized notes.
As of June 15, 2025, there were approximately $56.4 million of outstanding letters of credit and no outstanding borrowings under the existing variable funding note facilities. The company anticipates that the refinancing transaction will close in the third quarter of 2025, subject to market and other conditions.
Domino’s Pizza, Inc., founded in 1960, is the largest pizza company globally, with over 21,500 stores in more than 90 markets and global retail sales of over $19.4 billion in the trailing four quarters ended June 15, 2025. The company's system is comprised of independent franchise owners, accounting for 99% of Domino’s stores as of the end of the second quarter of 2025. In the U.S., Domino’s generated more than 85% of U.S. retail sales in 2024 through digital channels.
The press release emphasizes that the consummation of the note offering is subject to market and other conditions, and there is no assurance that the company will successfully complete the refinancing transaction on the terms described, or at all.
This announcement follows Domino’s ongoing efforts to manage its capital structure and optimize its debt, potentially reflecting the company's confidence in its ability to access favorable financing terms in the current market environment. As a result of these announcements, the company's shares have moved -0.68% on the market, and are now trading at a price of $444.105. Check out the company's full 8-K submission here.
