Moody's may upgrade Domino's

Moody's Investors Service said it placed all ratings of Domino's Inc under review for upgrade.

Moody's said the review is prompted by the company's announcement that it intends to undertake an initial public offering for at least $300 million and Moody's expectation that proceeds from the primary offering will be used to pay down debt.

Moody's said it understands that the initial public offering will be comprised of a primary offering and a secondary sale from existing shareholders. According to the optional redemption provision of the senior subordinated note of 2011 indenture, the company has the right, but not the obligation, to call up to 40% of the issue at 108.25% of par with proceeds from primary equity offerings.

Ratings placed under review for upgrade include the company's $663 million secured bank facility at B1 and $403 million 8¼% senior subordinated notes due 2011 at B3, the B1 senior implied rating, and the B2 issuer rating.

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