KBRA Assigns Ratings to Driven Brands Funding, LLC – Series 2019-3 Senior Secured Notes

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) announces the ratings to a note class of Driven Brands Funding, LLC (the “Issuer”), a whole business securitization.

Driven Brands, Inc. (“Driven Brands” or the “Company”) completed its first whole business securitization in July 2015. The transaction structure is a master trust, and the Issuer is issuing $115 million of Series 2019-3 Class A-1 Notes, which are variable funding notes. The Issuer is repaying and retiring the Series 2015-1 Class A-1 Notes in connection with this transaction.

In conjunction with the issuance of the Series 2019-3 Notes, KBRA is affirming the ratings on the Issuer’s Series 2015-1 Class A-2 Notes, Series 2016-1 Class A-2 Notes, Series 2018-1 Class A-2 Notes, Series 2019-1 Class A-2 Notes and Series 2019-2 Class A-2 Notes (the “Outstanding Notes”) and is withdrawing the ratings on the Issuers’ Series 2015-1 Class A-1 Notes. The affirmation reflects both the collateral performance, which is in line with KBRA’s rating scenarios, and that the Outstanding Notes continue to pass their respective rating level stresses with the addition of the Series 2019-3 Class A-1 Notes.

Driven Brands is one of the largest franchisors in the aftermarket automobile services and parts distribution industries. The Company franchises, owns, operates and manages locations under the core brands of CARSTAR, Maaco, Meineke, 1-800-Radiator & A/C and Take 5 Oil Change. The collateral consists of all existing and future franchise agreements in the United States, royalties from existing and future company-operated locations, product sourcing agreements, existing and future collections and profits from company-operated Take 5 locations, related intellectual property and a license fee from Canadian franchises.

KBRA analyzed the transaction using the Global General Rating Methodology for Asset-Backed Securities published on November 28, 2017 and the Global Structured Finance Counterparty Methodology published on August 8, 2018. KBRA also conducted an on-site operational review of Driven Brands at its Charlotte, NC headquarters in March 2018 and has met with the Company for updates.

To access ratings, reports and disclosures, click here.

Series and Class

Rating

Initial Note Amount

Series 2019-3, Class A-1

BBB (sf)

$115,000,000

Series and Class

Rating Action

Initial Note Amount

Series 2019-2, Class A-2

Affirm

$275,000,000

Series 2019-1, Class A-2

Affirm

$300,000,000

Series 2018-1, Class A-2

Affirm

$275,000,000

Series 2016-1, Class A-2

Affirm

$45,000,000

Series 2015-1, Class A-2

Affirm

$410,000,000

Series 2015-1, Class A-1

Withdraw

$50,000,000

Related Publications: (available at www.kbra.com)

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical:
Xilun Chen, Senior Director

(646) 731-2431

xchen@kbra.com

Zara Shirazi, Director

(646) 731-3326

zshirazi@kbra.com

Michael Lepri, Associate Director

(646) 731-3389

mlepri@kbra.com

Shalin Rajpara, Senior Analyst

(646) 731-3337

srajpara@kbra.com

Business Development:
Ted Burbage, Managing Director

(646) 731-3325

tburbage@kbra.com

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