KBRA Assigns a Preliminary Rating to Driven Brands Funding, LLC Series 2020-1 Senior Secured Notes

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary rating to a note class of Driven Brands Funding, LLC, (the “Issuer”) a whole business securitization.

Driven Brands, Inc. completed its first whole business securitization in July 2015. The transaction structure is a master trust, and the Series 2020-1, Class A-2 Notes (the “Series 2020-1 Notes”) represent the Company’s seventh securitization within the trust. Driven Brands Funding, LLC and Driven Brands Canada Funding Corporation (the “Canadian Co-Issuer”) are expected to issue $175 million of Series 2020-1 Notes, which will be pari passu with Notes from the prior six Series (the “Outstanding Notes” and together with the Series 2020-1, Class A‑2 Notes, the “Notes”). The Canadian Co-Issuer will become a co-issuer for the Outstanding Notes.

In conjunction with the issuance of the Series 2020-1 Notes, KBRA anticipates affirming the ratings on the Issuer’s outstanding Notes owing to the performance of the underlying collateral, which is consistent with our rating stresses following the addition of the Series 2020-1 Notes.

Driven Brands is the largest automotive services company in North America. The Company’s platform fulfills a large range of core consumer and commercial automotive needs, including paint, collision, glass, vehicle repair, oil change and maintenance. As of last twelve months (“LTM”) Q1 2020 fiscal period ending March 28, 2020, the portfolio included 3,245 locations, including 495 company-operated locations across 49 US states and all 10 Canadian provinces and one Canadian territory.

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Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the U.S. Information Disclosure Form located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the U.S. Information Disclosure Form referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

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Xilun Chen, Senior Director (Lead Analyst)

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Zara Shirazi, Senior Director

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Rosemary Kelley, Senior Managing Director (Rating Committee Chair)

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Shalin Rajpara, Senior Analyst

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