- Driven Brands ( NASDAQ: DRVN ) said Wednesday it closed an offering by certain subsidiaries for $365M series 2022-1 fixed rate senior secured notes, class A-2 maturing Oct. 2027, increasing the offering by over 30%.
- DRVN also increased the total capacity under variable funding notes to $250M through the addition of $135M series 2022-1 class A-1 notes.
- The notes were priced at a coupon of 7.4%, with an effective interest rate of 6.7% inclusive of a $275M interest rate hedge.
- Adjusting for this offering, DRVN's blended cost of fixed rate debt is 4.3% on a Q2 2022 proforma basis with an average tenor of ~5 years.
- On a Q2 proforma basis, DRVN's total debt portfolio is ~80% fixed rate.
- DRVN plans to use the net proceeds from the offering for general corporate purposes, including repayment of revolving credit facilities.
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Driven Brands announces $365M securitization issue