Driven Brands Closes Significant Securitization Deal
On October 21, 2025, Driven Brands Holdings Inc. (NASDAQ: DRVN) reported the successful closure of a $500 million offering, specifically targeting Series 2025-1 Fixed Rate Senior Secured Notes, Class A-2, which are set to mature in October 2055. This strategic move is aimed at refinancing existing debt, particularly the Series 2019-1 and Series 2022-1 Class A-2 notes, thereby enhancing the company’s financial positioning. The anticipated repayment date for the new notes is projected for October 2030.
The funds raised through this issuance will be complemented by capital from the company’s revolving credit facility. This refinancing effort not only addresses previous debts but also allocates resources for transaction-related costs and general corporate needs, indicating a comprehensive approach to managing the company’s financial structure. This transaction represents Driven Brands’ twelfth whole business securitization issuance, showcasing its ongoing commitment to maintaining a robust financial framework.
Details of the A-2 Notes Issuance
The newly issued A-2 Notes feature a fixed coupon rate of 5.296% and carry a tenor of five years, aligning with the company’s strategic goals for debt management. Ratings agencies have evaluated these notes, assigning a BBB rating from Kroll Bond Rating Agency and a BBB- from S&P Global Ratings, which mirrors the ratings assigned to the previous notes issued in July 2024. It is important to note that these A-2 Notes are not registered under the Securities Act of 1933 or any state securities laws, which limits their availability to qualified institutional buyers and designated international investors.
This issuance serves not only as a financial maneuver but also reflects Driven Brands’ broader strategy to consolidate its market position within the automotive services sector. By leveraging whole business securitization, the company effectively utilizes its diverse service offerings to bolster its financial health.
About Driven Brands
Based in Charlotte, NC, Driven Brands is recognized as the largest automotive services provider in North America. The company operates a comprehensive range of automotive services, including collision repair, vehicle maintenance, and oil changes, under well-known brands such as Take 5 Oil Change®, Meineke Car Care Centers®, and Maaco®. With around 4,800 locations across the U.S. and 13 other countries, Driven Brands services millions of vehicles annually, generating approximately $2.0 billion in annual revenue from system-wide sales of about $6.2 billion.
As the company continues to refine its financial strategies and expand its operational capabilities, the recent securitization is a pivotal step in ensuring its sustained growth and adaptability in an ever-evolving market landscape. For inquiries regarding shareholder or media relations, contacts have been provided for further information.
This ongoing commitment to financial prudence and operational excellence positions Driven Brands for future opportunities and challenges within the automotive services industry.
Related
