What was the amount of proceeds from the issuance of securitization debt for Jersey Mikes in 2024?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
On December 18, 2024, the Master Issuer issued an aggregate principal amount of $750 million Series 2024 Senior Secured Notes (collectively, the "Series 2024 Senior Notes"). The Series 2024 Senior Notes were issued in one tranche of Class A-2 Notes with an anticipated repayment date of February 2032 and a final maturity date of February 2055.
On November 8, 2024, the Master Issuer and its equity holders entered into an Equity Purchase Agreement with Submarine Buyer LLC (the "Buyer"), a Delaware limited liability company controlled by affiliates of Blackstone Inc. Pursuant to the Equity Purchase Agreement, Jersey Mike's Inc. ("Seller") formed a new Delaware limited liability company, Jersey Mike's HoldCo LLC, to indirectly hold 100% of the equity interests of the Company (the "Transaction"). On January 16, 2025, the Master Issuer was acquired for an enterprise value of $8.0 billion which includes a maximum additional $250 million in cash and is payable upon reaching certain earnout conditions or upon a change in control event. As of the date these financial statements are available to be issued, the preliminary purchase price allocation accounting for the Transaction is not yet complete. The Master Issuer expects to finalize its analysis within the measurement period (up to one year from the acquisition date) of the Transaction. As part of the Transaction, the Master Issuer issued $100 million Series 2024-1 Variable Funding Senior Secured Notes which will allow the Master Issuer to borrow amounts as needed on a revolving basis.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, on December 18, 2024, the Master Issuer issued $750 million in Series 2024 Senior Secured Notes. These notes were issued in one tranche of Class A-2 Notes with an anticipated repayment date of February 2032 and a final maturity date of February 2055.
Additionally, as part of a transaction on November 8, 2024, Jersey Mike's issued $100 million in Series 2024-1 Variable Funding Senior Secured Notes. These notes allow the Master Issuer to borrow amounts as needed on a revolving basis.
Therefore, in 2024, Jersey Mike's issued a total of $850 million in securitization debt. This information is relevant for prospective franchisees as it provides insight into the financial structure and activities of Jersey Mike's and its related entities.