Franchise Finance Corp. of America is readying a $650 million franchise lending-backed deal, to hit the market within next few weeks, in what could be the biggest franchise loan securitization ever, according to a source close to the transaction.
Though specific structure and ratings information have yet to be released, a source said "the street likes our deal. We're pretty confident it will be received well," particularly since FFCA's last deal was five times oversubscribed.
Morgan Stanley Dean Witter will be lead managing the offering, which will not feature a financial guarantee and is described as comparable in structure to FFCA's last deal, a $402 million offering priced in April.
If September's issuance goes through as rumored, FFCA's ABS volume will increase roughly 50%, marking significant growth for the company.
FFCA recently provided financing for Swifty Serve Corp.'s storefront renovations and Yorkshire Global Restaurant's purchase of Long John Silver's Restaurants.