NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two note classes of Bojangles Issuer LLC, (the “Issuer”) a whole business securitization.
This transaction represents the first securitization issued by Bojangles Issuer, LLC and is structured as a “whole business securitization” in which Bojangles’ Restaurants, Inc. will contribute most of its revenue-generating assets to the Issuer. The Issuer is expected to issue $40 million of Series 2020-1, Class A-1 Notes (the “Class A-1 Notes”) and $415 million Series 2020-1, Class A-2 Notes (the “Class A-2 Notes” and together with the Class A-1 Notes, the “Series 2020-1 Notes” or the “Notes”). The collateral includes existing and future franchise and development agreements, existing and future company-operated restaurant royalties and profits, and intellectual property. The proceeds from the offered notes will be used to refinance its existing credit facilities, pay certain transaction expenses and for general corporate purposes. The Company is the current franchisor and operator of restaurants under the Bojangles’ brand.
As of July 26, 2020, the Bojangles system included 748 locations in the US with system-wide sales of approximately $1.3 billion. The system was 57% franchised by restaurant count as of July 2020.
- Global General Rating Methodology for Asset Backed Securities
- Global Structured Finance Counterparty Methodology
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