KBRA Assigns Preliminary Ratings to TSC SPV Funding, LLC Series 2024-1
August 12 2024 - 11:22AM
Business Wire
KBRA assigns preliminary ratings to TSC SPV Funding, LLC Series
2024-1 (TROP 2024-1), a whole business securitization (WBS).
TROP 2024-1 is the inaugural securitization in which Tropical
Smoothie Café, LLC (TSC, the Manager, or the Company) will
contribute substantially all of its revenue-generating assets to
the Issuer as collateral for the offered notes. Similar to other
master trust WBS transactions, the Issuer can offer subsequent
series of notes if certain requirements in the transaction
documents are met. The collateral includes existing and future
franchise and license agreements, revenue from rebate agreements,
other fees and income, and intellectual property, and related
revenues therein. The proceeds from the offered notes will be used
to refinance existing corporate debt, pay transaction expenses, and
for general corporate purposes.
Founded in 1997, TSC is a franchisor of limited-service
restaurants in the United States focused on smoothies, wraps and
other healthy menu options. As of the trailing 53 week period ended
March 31, 2024 (LTM Q1 2024), the system generated $1.3 billion in
system sales (SWS) and has 1,411 locations as of the quarter ended
March 31, 2024 (Q1 2024) across 44 states, of which 1,410 are
franchised with the remaining location company-operated.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- ABS: Whole Business Securitization (WBS) ABS Global Rating
Methodology
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. 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.
Doc ID: 1005478
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Analytical Contacts
Matthew Gardener, Director (Lead Analyst) +1 646-731-1276
matthew.gardener@kbra.com
Thomas Berle Carman, Associate +1 646-731-1241
thomas.carman@kbra.com
Xilun Chen, Managing Director +1 646-731-2431
xilun.chen@kbra.com
Shane Olaleye, Managing Director +1 646-731-2432
shane.olaleye@kbra.com
Eric Neglia, Head of Commercial and Consumer ABS (Rating
Committee Chair) +1 646-731-2456 eric.neglia@kbra.com
Business Development Contact
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com