Domino’s To Go Public

Apr 14, 2004

By George Anderson

When the private equity firm Bain Capital LLC bought the Domino’s Pizza chain in 1998 it was considered just a matter of time before the company took the business public.

The time has finally come as the nation’s second largest pizza chain announced it has applied to the Securities and Exchange Commission to offer its shares for public sale.

Domino’s is hoping to raise $300 million through the offering.

According to a report in the Detroit Free Press, the chain plans to use the money “to pay off up to $161 million — about 40 percent — of its debt on which it pays 8.25
percent interest rate. The company had borrowed $403 million in 2003, which is due on July 1, 2011.”

Moderator’s Comment: What do you see as the net affect of Domino’s going public?

The timing appears right for Domino’s as more investment dollars are moving back into the stock market. The money raised will also help Domino’s get better
terms on its debt, which currently comes with an interest rate of 8.25 percent.

The downside will be the inevitable loss of freedom management has to deal with as it acquires more stakeholders (shareholders and analysts) with agendas
focused on short-term results.
Anderson – Moderator

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