Wednesday, March 21, 2012

DPZ (Domino's Pizza) To Pay $3 per share special dividend

ANN ARBOR, Mich. (AP) -- Domino's Pizza Inc.'s shares jumped in after-hours trading Friday after it announced that it completed its recapitalization plan and is issuing a $3-per-share special dividend.
Domino's recapitalization plan included the placement of a $1.675 billion securitized debt facility, which replaces an earlier higher-interest debt facility. That lowered its interest payments and gave it a fixed interest rate for the next seven years. It also includes an available revolver, which gives the company more financial flexibility.
The private placement deal includes $1.575 billion of senior fixed notes and $100 million of variable funding senior notes. The company will use the proceeds to repay outstanding notes and accrued interest. The remainder will be used for the dividend.
The special dividend will be paid April 2 to shareholders of record as of March 26.
Domino's also said that it may buy back more of its shares. It has $82.3 million remaining under an existing $200 million repurchase program.
Shares of Domino's, which operates nearly 10,000 stores around the globe, rose $1.45, or 3.6 percent, to $41.41 in after-hours trading.

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