Shares of Domino's Pizza(DPZ Quote) were among the NYSE's winners Wednesday, rising 9% after the pizza delivery company announced a plan to recapitalize. As part of the plan, the company will repurchase about 13.9 million shares of stock at prices ranging from $27.50 to $30 a share in a Dutch auction.
The company will also buy all of its remaining 8.25% senior subordinated notes due 2011, amounting to roughly $274 million. Domino's also plans to repay all debt under its senior credit facility. After it repays that debt, it will terminate the facility. Ultimately, Domino's will tap an asset-backed securitized facility to run its business.
"Based on the strong cash flow characteristics of our business, the appropriate corporate finance decision for our company is one that includes significant leverage," the company said. "The most efficient and flexible debt we can negotiate is asset-backed securitization, which provides the lowest cost of financing available to us." Shares were trading up $2.56 to $31.26. ...
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