KBRA Assigns Preliminary Ratings to Jack in the Box Funding, LLC – Series 2019-1 Senior Secured Notes

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) announces the preliminary ratings to four note classes of Jack in the Box Funding, LLC, a whole business securitization.

This transaction represents the first whole business securitization (“WBS”) issued by Jack in the Box Funding, LLC (the “Master Issuer”). The proceeds from the offered notes will be used to repay in full or to fund a deposit for the repayment in full of all outstanding indebtedness of the non-securitization entities, pay certain transaction-related expenses and for general corporate purposes, which may include a return of capital to the Company’s equity holders. In connection with this transaction, Jack in the Box Inc. (“JIB”, or the “Company”) will contribute substantially all of its revenue-generating assets to the Securitization Entities as collateral for the offered notes. The collateral includes existing and future franchise and license agreements, existing and future company-operated restaurant royalties and profits, certain owned real estate, real estate income, and intellectual property. The Company is the current franchisor and operator of restaurants under the Jack in the Box brand.

KBRA analyzed the transaction using the Global General Rating Methodology for Asset-Backed Securities published on November 28, 2017 and the Global Structured Finance Counterparty Methodology published on August 8, 2018. KBRA also conducted an on-site operational review of JIB at its San Diego, CA headquarters in October 2018. KBRA will review the final operative agreements and legal opinions for the transaction prior to closing.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.


Preliminary Ratings Assigned: Jack in the Box Funding, LLC, Series 2019-1 Senior Secured Notes

Series 2019-1

Preliminary Rating

Initial Principal Balance

Class A-1

BBB (sf)


Class A-2-I*

BBB (sf)


Class A-2-II*

BBB (sf)


Class A-2-III*

BBB (sf)


* The actual notional amount of the Class A-2 Notes may also be changed but will total $1,300 million.

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)




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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. 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, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.


Analytical Contacts:

Xilun Chen, Senior Director

(646) 731-2431


Abby Barkwell, Associate Director

(646) 731-3304


Usman Khan, Associate Director

(646) 731-2488


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