Kroll Bond Rating Agency Assigns Preliminary Ratings to Cajun Global LLC, Cajun Funding Corp., Cajun Restaurants LLC, and Cajun Realty LLC – Series 2017-1 Senior Secured Notes

NEW YORK--()--Kroll Bond Rating Agency (KBRA) announces the preliminary ratings to two note classes of Cajun Global LLC, Cajun Funding Corp., Cajun Restaurants LLC, and Cajun Realty LLC, a whole business securitization.

In connection with its first securitization transaction in 2011, Cajun Operating Company (“Cajun”, “Church’s” or “the Company”) contributed most of its revenue-generating to the Master Issuer and the Co-Issuers as collateral for the then offered notes. Cajun Global LLC is the franchisor and operator of restaurants under the Church’s/Texas Chicken brand. The collateral includes existing and future domestic and international franchise agreements, existing and future company-operated restaurant royalties, existing and future collections from company-operated restaurants, certain franchisee leases, and intellectual property. The proceeds from the offered notes will be used to refinance its existing 2011-1 securitization transaction, pay certain transaction expenses and for general corporate purposes.

As of December 2016, the Cajun restaurant system included over 1,500 locations with annual system-wide sales of approximately $1.2 billion. The transaction relates to royalties from 1,350 franchise locations and 238 company-operated restaurants, representing approximately 85.0% and 15.0% of total system-wide locations, respectively. Approximately 67.8% of the restaurant locations are within the United States, while the remainder are from locations outside of the United States, across over 23 countries including Puerto Rico.

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, Cajun Global 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: Cajun Global LLC – Series 2017-1 Senior Secured Notes

Series 2017-1       Rating       Initial Principal Balance
Class A-1       BBB (sf)       $25,000,000
Class A-2       BBB (sf)       $185,000,000
           

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: Cajun Global LLC Representations and Warranties Disclosure.

Related Publications: (available at www.kbra.com)

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Kroll Bond Rating Agency
Analytical Contacts:
Xilun Chen, Senior Director
(646) 731-2431
xchen@kbra.com
or
Anthony Nocera, Managing Director
(646) 731-2350
anocera@kbra.com
or
Andrew Lin, Associate Director
(646) 731-2483
alin@kbra.com
or
Follow us on Twitter!
@KrollBondRating

Contacts

Kroll Bond Rating Agency
Analytical Contacts:
Xilun Chen, Senior Director
(646) 731-2431
xchen@kbra.com
or
Anthony Nocera, Managing Director
(646) 731-2350
anocera@kbra.com
or
Andrew Lin, Associate Director
(646) 731-2483
alin@kbra.com
or
Follow us on Twitter!
@KrollBondRating