Domino's amends credit facility ahead of IPO

New York, May 7 - Domino's, Inc. amended its credit facility in connection with its planned initial public offering of common stock, including cutting the interest rate.

Under the amendment, proceeds of up to $150 million from the IPO will not have to be used to repay credit facility borrowings - but the company will still be able to exercise the equity clawback provision on its senior subordinated notes.

The interest rate on the facility is amended to Libor plus 225 basis points for term loans and from Libor plus 225 basis points to Libor plus 300 basis points for revolving loans, depending on the company's leverage. Below 3.25x, the rate is Libor plus 225 basis points, rising to 250 basis points up to 3.75x, then 275 basis points up to 4.25x and 300 basis points at 4.25x or higher.

Previously the loan was at Libor plus 325 basis points for both tranches.

The amendment was effective May 6, according to an 8-K filing with the Securities and Exchange Commission by the Ann Arbor, Mich. pizza company.

The term loan B commitment is currently $538 million while the revolver is $125 million. JPMorgan is the lead bank on the loan.

Domino's last month filed with the Securities and Exchange Commission for an IPO of up to $300 million of common stock.

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