A $3bn “whole-business securitisation” is being considered as a funding option by private equity firms vying to acquire sandwich chain Subway, according to a report by Bloomberg, citing unnamed sources with knowledge of the matter.
As well as the asset-backed financing, which would see Subway effectively mortgage all of its assets, including royalties, fees and intellectual property, the firms would look to raise an additional $2bn from traditional bonds and loans, according to Bloomberg’s sources.
Subway is being advised by JPMorgan Chase & Co on the potential deal, with the bank reportedly offering interested buyers a $5bn, one-year bridge financing package.
Get the week’s top news delivered directly to your inbox – Sign up for our newsletter
According to the sources, discussions are still preliminary and there is no guarantee that a deal will be completed.
About half-a-dozen parties are thought to be interested in acquiring Subway as part of an auction that should conclude early next month and value the business at more than $9bn.
Source: Private Equity Wire
Can’t stop reading? Read more
Exclusive Interview: Torge Barkholtz on rethinking SME succession through operator-led investing
Exclusive Interview: Torge Barkholtz on rethinking SME succession through operator-led investing...
Rightsizing the right way
Rightsizing the right way Rightsizing an organization is never easy. But, it is a normal process...
Mozaik Investments acquires majority stake in Romania’s Genesis College, plans €30m expansion
Mozaik Investments acquires majority stake in Romania’s Genesis College, plans €30m expansion...