Reported 4 months ago
Subway is issuing a $3.35 billion franchise-backed bond to finance its buyout, making it the largest securitization of its kind. The bond offering is oversubscribed and expected to surpass previous records, with Morgan Stanley and Barclays Plc as joint advisers. Whole business securitizations are a common source of capital for businesses with franchise networks, offering cheaper financing in exchange for asset control. This marks a trend in ABS sales, with issuance up 27% compared to last year, including deals from other restaurant chains like Zaxby’s and Nothing Bundt Cake.
Source: YAHOO