NEW YORK: Kroll Bond Rating Agency (KBRA) announced the preliminary ratings to two note classes of Arby’s Funding, LLC, Series 2020-1, a whole business securitization.

This transaction is the third whole business securitization (WBS) issued by Arby’s Funding, LLC (Issuer). In connection with its first securitization transaction in 2015, Arby’s Restaurant Group, Inc. contributed most of its revenue-generating assets to the Issuer as collateral for the then offered notes.

The collateral includes substantially all existing and future franchise agreements, existing and future company-operated restaurant royalties, rental income on fee-owned properties and intellectual property (IP).

As of March 29, 2020, the Arby’s restaurant system included 3,520 restaurants with annual system-wide sales of approximately $4.0 billion. The transaction includes royalty payments from 2,310 franchise locations and 1,188 company-operated restaurants, representing approximately 66% and 34% of total system-wide locations, respectively. The restaurant locations are located within the US across 48 states and in six foreign countries.