Subway’s $3.35 Billion Franchise-Backed Bond Is Largest Ever
- WBS pathway is well-known source of funding for restaurants
- Morgan Stanley, Barclays are jointly structuring the debt sale
A Subway Restaurant location in New York.
Photographer: Jeenah Moon/BloombergThis article is for subscribers only.
Sandwich chain Subway is selling $3.35 billion of asset-backed securities to help fund its buyout, marking the largest securitization of its kind on record.
The sandwich maker is selling a whole business securitization, where a company pledges most of its assets as collateral, including franchise fees, according to people with knowledge of the deal. Morgan Stanley and Barclays Plc are joint structuring advisers for the transaction, the people said.