KBRA Assigns Preliminary Ratings to Bojangles, LLC Series 2020-1 Senior Secured Notes

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.

Click here to view the report. To access ratings and relevant documents, click here.

Related Publications

• Global General Rating Methodology for Asset Backed Securities
• Global Structured Finance Counterparty Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the U.S. Information Disclosure Form located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the U.S. Information Disclosure Form referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA.