A $3 billion “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.
A $3 billion “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 $2 billion 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 $5 billion, one-year bridge financing package.
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 $9 billion.
