How Domino’s Persuaded Wall Street to Lend to It For Less

Restaurant chains are turning to complex debt deals that lower their borrowing costs, but at the price of control over their most valuable assets.

This summer, Domino’s Pizza Inc. sold $1.9 billion of bonds backed by essentially all of its revenue streams, including payments from franchisees, intellectual property and license and distribution agreements. The deal, which allowed it to borrow at well below the going rates on junk bonds, was the latest example of firms putting all their cash-generating assets into separate entities...

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