Kroll Bond Rating Agency Assigns Preliminary Ratings to Driven Brands Funding, LLC, Series 2016-1 Senior Secured Notes

NEW YORK--(BUSINESS WIRE)-- Kroll Bond Rating Agency (KBRA) announces the preliminary ratings to a note class of Driven Brands Funding, LLC, a whole business securitization. The ratings for the Series 2015-1 notes are to be affirmed in conjunction with the anticipated issuance of the Series 2016-1 notes.

Driven Brands, Inc. (“Driven Brands” or the “Company”) completed its first “whole business securitization” in July 2015 (“Driven 2015-1”). As part of Driven 2015-1, Driven Brands contributed nearly all of its revenue-generating assets to several bankruptcy-remote special purpose vehicles as collateral for the Series 2015-1 notes.

The Company franchises, owns, operates and manages locations under the core brands of Maaco, CARSTAR, Meineke and 1-800-Radiator & A/C. The transaction will also include franchises that operate under the Merlin, Pro Oil Change, Econo-Lube N’ Tune, Aero Colours, Drive N Style and AutoQual brand names. The collateral consists of all existing and future franchise agreements in the United States, product sourcing entities, related intellectual property and a license fee from Canadian sub-franchises. The Company has a network of approximately 2,245 locations across all 50 states and ten Canadian provinces.

KBRA analyzed the transaction using the General Rating Methodology for Asset-Backed Securities published on July 30, 2012. KBRA also conducted an on-site operational review of Driven Brands at its Charlotte, NC headquarters in June 2015. KBRA will review the final operative agreements and legal opinions for the transaction prior to closing.

For complete details on the analysis, please see KBRA’s Pre-Sale Report, Driven Brands Funding, LLC, Series 2016-1, which was published today at www.kbra.com.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Preliminary Ratings Assigned: Driven Brands Funding, LLC – Series 2016-1 Senior Secured Notes

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

View source version on businesswire.com: http://www.businesswire.com/news/home/20160505006756/en/

Kroll Bond Rating Agency
Analytical:
Patrick McShane, 646-731-2376
[email protected]
or
Anthony Nocera, 646-731-2350
[email protected]
or
Usman Khan, 646-731-2488
[email protected]

Source: Kroll Bond Rating Agency

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