Driven Brands Holdings has closed an offering by certain of its subsidiaries for $275 million in Series 2024-1 fixed-rate senior secured notes, Class A-2, maturing in October 2054 and with an anticipated repayment date in October 2031.
Proceeds from the issuance are to be used to refinance the company’s Series 2018-1 Class A-2 fixed-rate senior secured notes, to pay transaction-related fees and expenses, and for general corporate purposes.
Additionally, Driven Brands increased the total capacity under its variable funding notes through the addition of $400 million in Series 2024-1 Class A-1 notes, which refinanced undrawn $135 million Series 2019-3 Class A-1 notes.
The transaction was structured as a whole-business securitization through Driven Brands Funding and Driven Brands Canada Funding Corp. and represents Driven Brands’ 11th whole-business securitization issuance. The A-2 notes were priced at a coupon of 6.372% and have a seven-year tenor through the anticipated repayment date.
The A-1 Notes and A-2 Notes each received ratings of “BBB” from the Kroll Bond Rating Agency and “BBB-” (lowest investment-grade) from S&P Global Ratings, consistent with the Series 2022-1 fixed-rate senior secured notes, Class A-2, that closed in October 2022.
