Kirkland & Ellis announced on May 22 that it represented Apax-sponsored Authority Brands in its third whole business securitization issuance. The transaction includes $286 million of Class A-2 term notes and Class A-1 variable funding notes with commitments up to $175 million, which will be available on a revolving basis for working and growth capital.
The firm said the Class A-2 Notes received investment grade ratings of BBB from both KBRA and DBRS. The notes are secured by nearly all revenue-generating assets of twelve national service brands under Authority Brands in the United States, such as The Junkluggers, The Cleaning Authority, Benjamin Franklin Plumbing, One Hour Heating and Air Conditioning, Mosquito Squad, and Mister Sparky.
According to Kirkland & Ellis, the legal team advising on this transaction included structured finance lawyers Evan Berman, Kelly Mellecker, Brandon Karas, Brooke Brimo, Alissa Carbonara and Michael Urschel; debt finance lawyers Zachary Burgess and Katie Schneller; tax lawyers Jon Nelsen and Jon Herlin; as well as technology & IP transactions lawyers Shellie Freedman, Matthew Lovell and Camilo Mesa.
This marks another significant financing move for Authority Brands as it continues to expand its portfolio across various home services sectors. Securitization structures like this allow companies to access new sources of capital while leveraging existing brand assets.
