Subway Suitors Look to Fund Buyout with $3B Securitization
A $3 billion “whole-business securitization” is being considered as a funding option by private equity firms competing to acquire sandwich chain Subway, according to a report by Bloomberg.
As well as the asset-backed financing, which would see Subway effectively mortgage all 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 a potential deal, with the bank reportedly offering interested buyers a $5 billion, one-year bridge financing package.
Discussions are still preliminary and there is no guarantee a deal will be completed.
About six 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.