Domino's draws $35.1 million under variable funding note facility

By Sara Rosenberg

New York, Oct. 13 - Domino's Pizza Inc. borrowed an additional $35.1 million under its variable funding note facility and entered into a $50 million letter-of-credit agreement during the third quarter, according to a 10-Q filed with the Securities and Exchange Commission on Tuesday.

In addition, after the third quarter was over, the company drew another $1.2 million on the variable funding notes and currently has no borrowing capacity available under the $60 million facility.

Proceeds from the draws were used to help fund the repurchase and retirement of some class A-2 notes.

As a result of the letter-of-credit agreement, the company terminated substantially all of its pre-existing letters of credit.

Under the new agreement, the company will maintain a cash collateral account holding an amount equal to 105% of any outstanding letters of credit and pay to the counterparty quarterly commitment fees of 37.5 basis points and quarterly letter-of-credit fees of 75 bps.

Domino's is an Ann Arbor, Mich., pizza delivery company.

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