Driven Brands Closes $275 Million Securitization Issuance to Refinance Existing Debt
July 29 2024 - 5:05PM
Business Wire
Driven Brands Holdings Inc. (“Driven Brands” or the “Company”)
(NASDAQ: DRVN) announced today that it has closed an offering by
certain of its subsidiaries for $275 million of Series 2024-1 Fixed
Rate Senior Secured Notes, Class A-2 (the “A-2 Notes”) maturing
October 2054 and with an anticipated repayment date in October
2031. The proceeds from the issuance will 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.
In addition, Driven Brands increased the total capacity under
its Variable Funding Notes through the addition of $400 million of
Series 2024-1 Class A-1 Notes (the “A-1 Notes”), which refinanced
the undrawn $135 million Series 2019-3 Class A-1 Notes. The A-1
Notes were undrawn as of closing.
This transaction was structured as a whole business
securitization through Driven Brands Funding, LLC and Driven Brands
Canada Funding Corporation and represents Driven Brands’ eleventh
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
Kroll Bond Rating Agency and BBB- from S&P Global Ratings,
consistent with the Series 2022-1 Fixed Rate Senior Secured Notes,
Class A-2, that closed in October 2022.
The A-2 Notes are not registered under the Securities Act of
1933, as amended (the “Securities Act”) or any state securities
laws, and may not be offered or sold in the United States absent
registration or an applicable exemption from, or a transaction not
subject to, the registration requirements of the Securities Act and
applicable state securities laws. The A-2 Notes were offered only
to qualified institutional buyers under Rule 144A and to persons
outside the United States pursuant to Regulation S under the
Securities Act. This press release is not an offer to sell, nor a
solicitation of an offer to buy, any securities, nor shall there be
any sale of these securities in any state or jurisdiction in which
the offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such
state or jurisdiction.
Driven Brands™, headquartered in Charlotte, NC, is the largest
automotive services company in North America, providing a range of
consumer and commercial automotive needs, including paint,
collision, glass, vehicle repair, oil change, maintenance and car
wash. Driven Brands is the parent company of some of North
America’s leading automotive service businesses including Take 5
Oil Change®, Take 5 Car Wash®, Meineke Car Care Centers®, Maaco®,
1-800-Radiator & A/C®, Auto Glass Now®, and CARSTAR®. Driven
Brands has more than 5,000 locations across 13 countries, and
services approximately 70 million vehicles annually. Driven Brands’
network generates approximately $2.3 billion in annual revenue from
approximately $6.4 billion in system-wide sales.
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version on businesswire.com: https://www.businesswire.com/news/home/20240729559397/en/
Shareholder/Analyst inquiries: Dawn Francfort ICR, Inc.
investors@drivenbrands.com (203) 682-8200 Media inquiries:
Taylor Blanchard taylor.blanchard@drivenbrands.com (704)
644-8129
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