KBRA Assigns Preliminary Ratings to DB Master Finance LLC Series 2021-1 Senior Secured Notes

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes from DB Master Finance LLC Series 2021-1, a whole business securitization.

This transaction is a whole business securitization (“WBS”) whereby Dunkin’ Brands, Inc. (“DBI”, “Dunkin’ Brands” or the “Company”) and certain of its affiliates have contributed substantially all of their revenue-generating assets to DB Master Finance LLC (the “Master Issuer”) and the related securitization entities. The transaction is a master trust and the collateral includes existing and future domestic franchise and development agreements, various international franchise and development agreements, various international revenues and joint venture distributions, certain interest in real property, intellectual property (IP) and license agreements. The proceeds from the Series 2021-1 Notes will be used to repay the Master Issuer’s Series 2017-1 Class A-2-I Notes and Series 2019-1 Class A-2-I Notes, pay certain transaction-related expenses and for general corporate purposes, including a potential distribution to shareholders of Inspired Brands, Inc., the parent company of Dunkin’ Brands.

The Master Issuer’s Series 2017-1 Class A-2-II Notes, Series 2019-1 Class A-1 Notes, Series 2019-1 Class A-2-II Notes and Series 2019-1 Class A-2-III Notes will remain outstanding (“Existing Notes”) and will have an expected outstanding balance of approximately $2.0 billion at the closing date of this transaction. The Existing Notes are pari passu to the Series 2021-1 A-2 Notes. KBRA’s rating will be assigned only to the Series 2021-1 Class A-2 Notes.

The Company is the franchisor and operator of restaurants under the Dunkin’ and Baskin-Robbins brands. As of June 26, 2021 (“Q2 2021”), the Dunkin’ Brands restaurant system included 20,552 restaurants with annual system-wide sales of approximately $12.9 billion, with approximately 81% from the US and 19% from international locations.

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Related Publications

• Whole Business Securitization (WBS) ABS Global Rating Methodology
• ESG Global Rating Methodology
• 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 Information Disclosure Form(s) 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 Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. 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.