KBRA Assigns Ratings to TSC SPV Funding, LLC Series 2024-1
6 Sep 2024 | New York
KBRA assigns ratings to TSC SPV Funding, LLC Series 2024-1 (TROP 2024-1), a whole business securitization (WBS).
TROP 2024-1 is the inaugural securitization in which Tropical Smoothie Café, LLC (TSC, the Manager, or the Company) will contribute substantially all of its revenue-generating assets to the Issuer as collateral for the offered notes. Similar to other master trust WBS transactions, the Issuer can offer subsequent series of notes if certain requirements in the transaction documents are met. The collateral includes existing and future franchise and license agreements, revenue from rebate agreements, other fees and income, and intellectual property, and related revenues therein. The proceeds from the offered notes will be used to refinance existing corporate debt, pay transaction expenses, and for general corporate purposes.
Founded in 1997, TSC is a franchisor of limited-service restaurants in the United States focused on smoothies, wraps and other healthy menu options. As of the trailing 53 week period ended March 31, 2024 (LTM Q1 2024), the system generated $1.3 billion in system sales (SWS) and has 1,411 locations as of the quarter ended March 31, 2024 (Q1 2024) across 44 states, of which 1,410 are franchised with the remaining location company-operated.
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