ANN ARBOR Mich. The final result of Domino's Pizza Inc.'s Dutch auction tender offer was undersubscribed, clearing the way for a possible special dividend to investors as early as next month or further share repurchases as the company is still cash-heavy, analysts said.
The company reported Monday that it would accept for purchase 2,242 shares of its common stock at a purchase price of $30 per share, for a total of $67,260. The original terms of the offering called for Domino's to purchase up to 13.85 million shares, or about 22 percent of shares outstanding, in the range of $27.50 per share to $30.00 per share, for a maximum value of $415.5 million.
As previously reported, Domino's directors, executive officers and 27-percent stakeholder Bain Capital LLC did not take part in the tender offer. Analysts said the result was not a surprise, as Domino's stock price had not dipped below the $30 price since the tender was announced in February.
Domino's said in a statement it is "pleased" with the tender offer's results and would continue with its recapitalization plan, which includes a tender offer for all its senior subordinated notes and the eventual closing of an asset-backed securitized facility worth $1.85 billion.
Domino's operates and franchises a system of 8,366 pizza delivery units.