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Domino's Buys Back Shares From Bain

It borrows $100 million for the transaction.

In an effort to unload some of its fast food portfolio, Bain Capital sold 5.6 million shares of

Domino's Pizza

(DPZ) - Get Domino's Pizza, Inc. Report

back to the company in a leveraged share buyback.

Bain reduced its stake in Domino's to 28% from 34%, collecting $145 million for the stock, or $25.78 a share. The price is slightly below Domino's Friday close of $26.22. To effect the repurchase, Domino's had to add $100 million to its $702.6 million of outstanding debt, bringing the total to $802.6 million. The company had to amend its credit facility in order to lever up for the deal, but said that its interest rate wouldn't change.

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Shares in Domino's Pizza were up 61 cents, or 2.33%, to $26.71 in early trading Monday.

Bain Capital has an affinity for the America's fast food craze. In 1998, it bought Domino's from founder Tom Monaghan when he retired. At the time, Bain bought 6,100 stores for a $1.1 billion, funding it 65% with debt, reports said.

In July 2004, Bain Capital sold 22% of its shares in an initial public offering. The stock came public at $14 and, after a bumpy first few months, the shares have almost doubled.

Bain's fast food binge goes beyond pizza chains. In July 2002 the company paid $2.1 billion with partners Texas Pacific and Goldman Sachs to acquire Burger King. Recently, Burger King said it would go public in the largest restaurant IPO ever, hoping to raise $400 million. Bain still has Dunkin' Donuts in its portfolio, which it purchased earlier this month with partners Thomas H. Lee Partners and the Carlyle Group for $2.43 billion.

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