Kirkland & Ellis announced on May 13 that it represented Blackstone-sponsored Tropical Smoothie Cafe, LLC in the issuance of its Series 2026-1 term notes under its whole business securitization facility. The transaction included $180 million of Class A-2 notes and $90 million of subordinated Class M notes, marking the first time TSC has issued subordinated notes and placing it among the early issuers of such instruments in the WBS market.
The move is significant as it allows Tropical Smoothie Cafe to further monetize its brand and assets while maintaining flexibility for future financing. The company may issue additional series if certain requirements are met, according to the announcement.
Kirkland & Ellis said that “the notes were supported entirely by system growth, highlighting TSC’s strong performance.” The firm also highlighted that this structure provides added financial options for TSC going forward.
The legal team from Kirkland & Ellis included professionals across multiple practice areas such as structured finance, capital markets, technology and intellectual property transactions, investment funds, employment and labor law, debt finance, sustainability, tax law, banking regulation, litigation, and employee benefits.
This transaction reflects a trend toward more complex financing structures within the restaurant industry. Observers will be watching to see if other companies follow suit with similar securitization strategies.
