Subway’s US$3.35bil franchise-backed bond is largest ever

Bond offering: Customers queue outside a Subway store in Warsaw, Poland. The sandwich maker is selling a whole business securitisation, where a company pledges most of its assets as collateral, including franchise fees. — Bloomberg

NEW YORK: Sandwich chain Subway is selling US$3.35bil of asset-backed securities to help fund its buyout, marking the largest securitisation of its kind on record.

The sandwich maker is selling a whole business securitisation, where a company pledges most of its assets as collateral, including franchise fees, according to sources.