Subway’s $3.35 Billion Franchise-Backed Bond Is Largest Ever (2)

Sandwich chain Subway is selling $3.35 billion of asset-backed securities to help fund its buyout, marking the largest securitization of its kind on record.

The sandwich maker is selling a whole business securitization, where a company pledges most of its assets as collateral, including franchise fees, according to people with knowledge of the deal. Morgan Stanley and Barclays Plc are joint structuring advisers for the transaction, the people said.

The bond offering is already more than two times oversubscribed, according to people familiar. Demand for available bonds that were not already committed is around four times or more, the ...