KBRA Assigns Ratings to ME Funding, LLC, Series 2024-1 and Takes Other Rating Actions
9 Apr 2024 | New York
Massage Envy 2024-1 is the second whole business securitization (WBS) issued by ME Funding, LLC (the Issuer). In connection with its first securitization in 2019, Massage Envy Franchising, LLC (Massage Envy or the Company) contributed substantially all of its revenue-generating assets to ME SPE Franchising, LLC, a wholly-owned subsidiary of 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 Issuer is issuing three note classes totaling $381.6 million (the Series 2024-1 Notes). In conjunction with the anticipated rating assignment, KBRA is withdrawing the ratings on the Issuer’s Series 2019-1 Class A-1 and Class A-2 Notes following the full repayment of the securities. Proceeds for the former repayment are being sourced through a partial draw of the Series 2024-1 Class A-1-VFN Notes, while funds for the latter are being generated from the Series 2024-1 Class A-2 Note issuance as well as Company funds. The transaction collateral includes existing and future franchise and development agreements, regional development agreements, vendor contracts, related franchisee payments and securitization intellectual property (IP). The proceeds from the offered notes are being used to repay outstanding amounts under the Series 2019-1 Notes in full, pay certain transaction expenses, make deposits into certain transaction accounts and for general corporate purposes.
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