Driven Brands Holdings Inc. announced closing a $500 million securitization issuance to refinance existing debt on Oct. 21. Driven Brands operates Charlotte, North Carolina-based Auto Glass Now.
The offering for $500 million of Series 2025-1 Fixed Rate Senior Secured Notes, Class A-2, came from unnamed Driven Brands subsidiaries. The notes mature in October 2055 and have an anticipated repayment date in October 2030. The proceeds from the issuance will be used in combination with funding from Driven Brands’ revolving credit facility to refinance its Series 2019-1 and Series 2022-1 Class A-2 Fixed Rate Senior Secured Notes to pay transaction-related fees and expenses and for general corporate purposes.
This transaction was structured as a whole business securitization through Driven Brands Funding LLC and Driven Brands Canada Funding Corporation and represents Driven Brands’ twelfth whole business securitization issuance. The A-2 Notes were priced at a coupon of 5.296% and have a five-year tenor through the anticipated repayment date.
The A-2 Notes received ratings of BBB from Kroll Bond Rating Agency and BBB- from S&P Global Ratings.
