KBRA Assigns Preliminary Ratings to TLE WBS Issuer, LLC, Series 2026-1 Senior Secured Notes

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to TLE WBS Issuer, LLC (the Issuer), Series 2026-1 (TLE 2026-1), a whole business securitization (WBS). TLE 2026-1 is the inaugural securitization from The Learning Experience Corp. (TLE, the Manager or the Company), in which the Company will contribute substantially all of its revenue-generating assets to the Issuer as collateral for the offered notes. The Issuer can offer subsequent series of notes if certain requirements in the transaction documents are met. The collateral includes existing and future domestic and international franchise assets, including franchise and development agreements, franchise royalties and fees, company-owned school synthetic royalties, curriculum and other licensing fees, and securitization intellectual property, including curriculum fees. The proceeds from the offered notes will be used to refinance existing corporate debt, pay transaction expenses and for general corporate purposes.

The Learning Experience was founded in 2002 and is a franchisor and a provider of early childhood education and childcare in the United States and United Kingdom. The system was approximately 93% franchised and generated over $955 million in system-wide sales (SWS) from 540 schools across 32 US states and England, Wales and Scotland as of the last twelve months ended June 30, 2026.

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Methodologies

• ABS: Whole Business Securitization (WBS) ABS Global Rating Methodology
• Structured Finance: 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), one of the major credit rating agencies (CRA), is a full-service CRA 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. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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