Domino's Pizza Announces Refinancing Transaction of $742 Million in Securitized Debt

Strategic Insights -

Domino's Pizza, Inc., the largest pizza company in the world, has announced its intention to complete a refinancing transaction of a portion of its outstanding securitization debt with a new series of securitized debt. The company's subsidiaries intend to issue $1.0 billion of new securitized notes and use the proceeds to prepay and retire in full approximately $1.1 billion in aggregate principal amount of existing debt.

The refinancing transaction will include the issuance of a new series of securitized notes under the company's existing securitized financing facility. The company's subsidiaries also expect to enter into a new variable funding note facility, which will replace the existing $200 million 2021-1 Variable Funding Notes, Class A-1 and $120 million 2022-1 Variable Funding Notes, Class A-1. As of June 15, 2025, there was approximately $56.4 million of outstanding letters of credit and no outstanding borrowings under the existing variable funding note facilities.

The consummation of the note offering is subject to market and other conditions and is anticipated to close in the third quarter of 2025. However, there can be no assurance that the company will be able to successfully complete the refinancing transaction on the terms described, or at all.

Key Takeaways:

  • Domino's Pizza, Inc. is seeking to refinance $742 million in securitized debt through the issuance of $1.0 billion in new securitized notes.
  • The refinancing transaction will be used to prepay and retire in full approximately $1.1 billion in aggregate principal amount of existing debt.
  • The company's subsidiaries expect to enter into a new $320 million variable funding note facility, which will replace the existing $200 million 2021-1 Variable Funding Notes, Class A-1 and $120 million 2022-1 Variable Funding Notes, Class A-1.
  • As of June 15, 2025, there was approximately $56.4 million of outstanding letters of credit and no outstanding borrowings under the existing variable funding note facilities.
  • The refinancing transaction is subject to market and other conditions and is anticipated to close in the third quarter of 2025.
  • The company has a global retail sales of over $19.4 billion in the trailing four quarters ended June 15, 2025.
  • Domino's generated more than 85% of U.S. retail sales in 2024 via digital channels.
  • The company's system is comprised of independent franchise owners who accounted for 99% of Domino's stores as of the end of the second quarter of 2025.

Statistics:

  • $1.0 billion: The amount of new securitized notes to be issued by the company's subsidiaries.
  • $742 million: The amount of securitized debt to be refinanced through the issuance of new securitized notes.
  • $1.1 billion: The aggregate principal amount of existing debt to be prepaid and retired in full through the refinancing transaction.
  • $320 million: The amount of the new variable funding note facility to be entered into by the company's subsidiaries.
  • $56.4 million: The amount of outstanding letters of credit as of June 15, 2025.
  • $19.4 billion: The global retail sales of Domino's in the trailing four quarters ended June 15, 2025.
  • 85%: The percentage of U.S. retail sales generated by Domino's via digital channels in 2024.
  • 99%: The percentage of Domino's stores accounted for by independent franchise owners as of the end of the second quarter of 2025.

Sources:

  • Domino's Pizza, Inc. press release, August 6, 2025.
  • Domino's Pizza, Inc. Form 8-K filing, August 6, 2025.