NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to two classes of notes from FOCUS Brands Funding LLC, Series 2022-1 (Focus 2022-1), a whole business securitization (WBS).
Focus 2022-1 represents FOCUS Brands Funding LLC’s (Focus’ or the Company’s) third securitization after Series 2017-1 and Series 2018-1 from the same trust, and all three series share in the same collateral pool. In conjunction with the issuance of Series 2022-1, KBRA anticipates affirming the ratings on the Co-Issuers’ outstanding Series 2017-1 Class A-2-II Notes and Series 2018-1 Class A-2-I Notes (the Existing Notes , and, together with the Series 2022-1 Notes, the Notes) and withdrawing the ratings on Issuer’s Series 2017-1 Class A-1 and Class A-2-IB Notes. The ratings are consistent with the results of our cash flow analysis following the addition of the Series 2022-1 Notes.
The Company is the franchisor and operator of branded locations under the brands Auntie Anne’s, Carvel, Cinnabon, Jamba, McAlister’s Deli, Moe’s Southwest Grill and Schlotzsky’s. The collateral includes existing and future franchise and development agreements, existing and future company-operated location royalties, licensing fees, certain vendor payments and fees, intellectual property, and related revenues. The Co-Issuers are issuing two classes of notes totaling $610 million (the Notes). The proceeds from the offered Notes will be used to refinance the Co-Issuers’ outstanding Series 2017-1 Class A-2-IB Notes, pay certain transaction expenses, and general corporate purposes, which may include a distribution to shareholders. The Class 2017-1 Class A-1 Notes are currently undrawn and will be replaced by the Series 2022-1 Class A-1 Notes.
As of March 27, 2022, the Focus restaurant system included 6,367 total locations with system-wide sales of approximately $3.7 billion. The transactions relates to royalties from 6,292 franchise locations and 75 company-operated restaurants, representing approximately 98.8% and 1.2% of total store locations, respectively. Approximately 74.2% of the locations are in the US and the remainder are located across 59 countries.
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