KBRA Assigns Preliminary Ratings to Cajun Global LLC 2021-1 Senior Secured Notes

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes from Cajun Global LLC, a whole business securitization.

This transaction represents the third securitization co-issued by Cajun Global LLC (“Master Issuer”), Cajun Funding Corp., Cajun Restaurants LLC, Cajun Realty LLC and Cajun Holdco LLC (together, the “Co-Issuers”) and is structured as a “whole business securitization” (WBS). In connection with its first securitization transaction in 2011, Cajun Operating Company (“Cajun”, “Church’s” or the “Company”) contributed most of its revenue-generating assets to the Master Issuer and the Co-Issuers as collateral for the then offered notes. The Co-Issuers are issuing three class of notes totaling $252.9 million (the “Notes”). The transaction collateral includes existing and future domestic and international franchise agreements and associated royalties and fees, royalties and profits from company-operated restaurants, certain franchisee leases and intellectual property. The proceeds from the offered Notes will be used to repay an existing credit facility and to pay certain transaction fees and expenses.

The Company is the franchisor and operator of restaurants under the Church’s/Texas Chicken brand. The Cajun restaurant system included 1,566 locations with annual system-wide sales (SWS) of approximately $1.2 billion for the twelve months ending (“LTM”) July 11, 2021 (“Q2 2021”) and the system is approximately 90% franchised. Approximately 58% of restaurants are located within 28 U.S. states (including the District of Columbia) while the remainder are located internationally, across 26 countries and U.S. territories (including Puerto Rico).

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Related Publications

• General Global Rating Methodology for Asset Backed Securities
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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