J.P. Morgan held a bank meeting last Wednesday for existing lenders and some prospective new lenders to shop a lower-priced refinancing for Domino's. The pizza delivery company is looking to take advantage of a recent upgrade by Moody's Investors Service, which was prompted by improved performance, and more favorable market conditions, said a banker familiar with the deal. The $474 million bank facility was upgraded from B1 to Ba3, while $256 million of 103/ 8% senior sub notes jumped to B2 from B3. Company officials and a spokesman for J.P Morgan declined to comment.
Bankers said the new $465 million credit consists of a $100 million revolver and a $365 million "B" loan. Pricing is LIBOR plus 21/ 4% and LIBOR plus 21/ 2%, respectively. This represents a fairly drastic price cut as spreads on the existing line, which was arranged in 1998, are 3% over LIBOR on the revolver and 31/ 2% over LIBOR on the term loans.