Toronto, Ontario -- Driven Brands Holdings Inc. has announced a US$500 million ($685 million) deal to help pay off debts and strengthen its finances.
The company, based in Charlotte, North Carolina, said the money was raised through a process called a securitization — a type of loan backed by company earnings. Two of its subsidiaries, Driven Brands Funding LLC and Driven Brands Canada Funding Corporation, completed the transaction. This is the twelfth time the company has used this type of financing.
The new notes — a financial term for IOUs or promises to repay investors with interest — are part of the company’s Series 2025-1 Class A-2 issuance. They carry a 5.296 percent interest rate and are scheduled to mature in 2055, with an expected repayment in 2030. Driven Brands said the funds will be used to pay off older Series 2019-1 and Series 2022-1 notes, cover transaction costs and support general company needs.
Two credit rating agencies, S&P Global Ratings and Kroll Bond Rating Agency, rated the new notes. S&P gave them a BBB rating, meaning the company has a good ability to repay its debts. KBRA gave a BBB- rating, which is slightly lower but still considered investment-grade. Both ratings indicate that the company is financially stable and a relatively safe investment, though KBRA views the risk as higher than S&P does.
Driven Brands, traded on NASDAQ under “DRVN,” operates about 4,800 automotive service locations across the U.S. and 13 other countries. Its well-known brands include CARSTAR, Maaco, Meineke, Take 5 Oil Change and Auto Glass Now.
