NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) announces the preliminary ratings to two note classes of TGIF Funding, LLC, a whole business securitization.
TGI Friday’s, Inc. (“TGIF”, or “the Company”) will contribute many of its revenue-generating assets to TGIF Funding, LLC as collateral for the offered notes. The collateral consists of certain of its existing and future franchise agreements, existing and future Company-operated restaurant royalties, license agreements, existing and future intellectual property, and related revenues. The proceeds from the offered notes will be used to refinance the Company’s existing debt, while also providing a distribution to shareholders.
As of September 26, 2016, the TGIF restaurant network included 903 locations with annual system-wide sales of approximately $2.5 billion. The transaction relates to royalties from 849 franchise locations and 54 company-operated restaurants, representing approximately 94.0% and 6.0% of total system-wide locations, respectively. Approximately 52.4% of the restaurant locations are within the United States, while the remainder are from locations outside of the United States, across 56 foreign countries.
KBRA analyzed the transaction using the General Rating Methodology for Asset-Backed Securities published on July 30, 2012. KBRA will review the final operative agreements and legal opinions for the transaction prior to closing.
For complete details on the analysis, please see KBRA’s Pre-Sale Report, TGIF Funding, LLC – Series 2017-1 Senior Secured Notes, which was published today at www.kbra.com.
The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.
Preliminary Ratings Assigned: TGIF Funding, LLC – Series 2017-1 Senior Secured Notes
|Series 2017-1||Rating||Initial Principal Balance|
|Class A-1||BBB (sf)||$50,000,000|
|Class A-2||BBB (sf)||$400,000,000|
Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled Disclosure is available at the following link: TGIF Funding, LLC Representations and Warranties Disclosure.
Related Publications: (available at www.kbra.com)
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