NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes of SEB Funding LLC, an entire corporate securitization.
This transaction represents the first securitization of Self Esteem Brands LLC (“Self Esteem Brands”, “SEB” or the “Company”). The transaction is structured as a “global securitization” (WBS) in which SEB and certain of its subsidiaries contribute substantially all of their income-generating assets to SEB Funding LLC (the “Issuer”) and its subsidiaries. The Issuer issues three classes of notes totaling $ 510.75 million (the “Notes”). The collateral for the transaction includes existing and future franchise agreements and associated royalties and fees, rebate income, margin on distribution sales, other fees and income, and intellectual property. The proceeds of the offered Notes will be used to repay existing debt, to pay certain transaction fees and expenses, and for general corporate purposes, including distribution to the parent company of the Company.
The Company is the franchisor and operator of health and wellness brands including Anytime Fitness (fitness clubs), Waxing the City (waxing studios), Basecamp Fitness (high intensity fitness studio) and The brands Method Bar (low impact fitness studio). He is best known for his chain of facilities Anytime Fitness, which was founded in 2002. The SEB system comprises 5,153 units in 50 states and 34 countries as of September 30, 2021. System-wide sales totaled approximately 1 , $ 7 billion for the twelve months ending September 30, 2021 (“LTM Q3 2021”) and the system is approximately 99% franchised.
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