Subway Grows Franchise-Backed Debt Pile in $2.34 Billion Deal

Subway has sold $2.34 billion in securities, the sandwich chain’s second deal backed by assets including franchises in barely three months, as the company refinances buyout debt ahead of likely US interest-rate cuts.

The three-tranche deal, rated BBB by S&P Global Ratings, is the fourth-largest whole business securitization. The biggest was the $3.35 billion sale that Subway did in late May. The two offerings make up more than half of the market’s total volume this year.

Companies like Subway tap the WBS market to raise capital at often discounted rates compared to other sources. They’re able to get better ...