Reported 4 months ago
Subway has completed a $3.35 billion securitization, the largest of its kind in history, to help fund its buyout by Roark Capital Group. The deal involved selling asset-backed bonds, with investors showing strong demand by placing $19 billion in orders for the $3.35 billion in bonds. This securitization marks Subway's debut in this type of funding and places the company among the top 10 largest ABS transactions of the last decade. Whole business securitizations, like this one, have become a popular funding source for businesses with a large network of franchised stores, offering investors more control over assets in exchange for access to cheaper capital.
Source: YAHOO