Revenues from franchise locations of Mathnasium, a company that provides instructor-led math education for students in grades K-12, will support $330.5 million in asset-backed securities.
This is Mathnasium Center Licensing's first securitization, and the master trust structure is slated to issue the debt through four classes of notes, most with variable interest rates.
A revolving class A-1-VFN and a growth class A-1-VFN have an anticipated repayment date of October 2031. The A2 tranche is expected to repay in October 2033, while all the notes have a slated final maturity date of October 2056, according to analysts at Kroll Bond Rating Agency.
Jefferies is the sole structuring advisor and lead active bookrunner, according to KBRA.
The collateral securing the notes includes existing and future franchise agreements and associated royalties and fees, plus development agreements under the brand, company-owned royalties, intellectual property, transaction accounts, and pledge of the equity interests in the issuer.
Relative to other whole-business securitizations that KBRA has rated, the Mathnasium system is relatively small, with system-wide sales of $461 million as of Q2 2026.
To keep cash flowing to the notes, the deal's senior notes have an interest reserve account covering three months' worth of class A note interest payments and fees, KBRA said.
The structure also includes a cash flow sweeping leverage trigger. If the deal's senior leverage ratio exceeds the scheduled 2026-1 cash flow sweep target, then up to 25% of all excess available funds will be used to pay down the class A notes, KBRA. The rating agency notes that the trigger will only end when the class A2 notes are no longer outstanding or Mathnasium's systemwide sales reach or exceed $900 million, whichever is sooner.
Mathnasium 2026-1 also has a liquidity reserve debt service coverage ratio (DSCR). Should the principal and interest DSCR fall below 1.80x on any quarterly payment date, up to 20% of all funds will be deposited into the liquidity reserve account, the rating agency said.
KBRA assigns BBB- to all notes in the issuance.
