NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes from Zaxby’s Funding LLC, a whole business securitization.
This transaction represents Zaxby’s Operating Company L.P.’s (“Zaxby’s” or the “Company”) first securitization. The transaction is structured as a “whole business securitization” (WBS) in which Zaxby’s and certain of its affiliates are contributing substantially all of their domestic revenue-generating assets to Zaxby’s Funding LLC (the “Issuer”) and its subsidiaries. The Issuer is issuing three class of notes totaling $985 million (the “Notes”). The transaction collateral includes existing and future domestic franchise agreements and associated royalties and fees, royalties and profits from company-operated restaurants, certain vendor rebates, rental income, other fees and income and intellectual property. The proceeds from the offered Notes will be used to refinance Zaxby’s existing indebtedness, to pay certain transaction fees and expenses, and for general corporate purposes.
The Company is the franchisor and operator of restaurants under the Zaxby’s brand. The Company has a 30-year history as a founder-run restaurant brand focused primarily on chicken. Headquartered in Athens, GA, the Zaxby’s system includes 911 restaurants across 17 states in the Southern U.S. as of March 28, 2021. System-wide sales totaled approximately $2.1 billion for the twelve months ending (“LTM”) March 28, 2021 (“Q1 2021”) and the system is approximately 84% franchised.
- General Global Rating Methodology for Asset Backed Securities
- Global Structured Finance Counterparty Methodology
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