King & Spalding has closed three esoteric securitization transactions since June involving a portfolio of distributed network system (“DNS”) networks and franchising revenues of one of the largest providers of spa services in the United States and one of the world’s largest full-service dining companies.
In a deal that closed on July 19, King & Spalding represented two major investment banks (one as sole structuring advisor, and both as joint bookrunning managers and initial purchasers) in the inaugural issuance of $443 million of notes backed by a portfolio of DNS Networks managed by ExteNet Systems. The transaction is a first-in-class transaction involving the first time a securitization has been marketed entirely comprised by a pool of DNS assets without associated real property or wireless tower collateral.
In a deal that closed on June 18, King & Spalding represented a major international investment bank as the sole structuring advisor, lead left active book-running manager and initial purchaser in a $385 million whole business securitization of the franchise assets of Massage Envy Franchising, LLC, the leading provider of spa services in the United States.
In a deal that closed on June 5, King & Spalding represented a major international investment bank as the sole structuring advisor, sole bookrunner and initial purchaser in the securitization of the franchise assets of Dine Brands Global, Inc., the owner of Applebee’s and IHOP restaurants, and the issuance of $1.525 billion of notes.
These securitizations follow King & Spalding's representation of several major investment banks and issuers in other recent, headline, esoteric securitizations. The King & Spalding finance team for the transactions was compromised of partners Michael Urschel, Ryan McNaughton and Jeff Misher, counsel Anthony Mechcatie, associates Katie Weiss, Jennifer Tian, Adam Ghebrekristos, Charlene Yin, Amber Dong and Matt Roberts, and senior attorney Bert Eidson, with assistance from partners Sarah Borders (bankruptcy), John Taylor (tax) and Angela Hayes (regulatory), Sam Choy (ERISA), counsel Kevin Manz (regulatory) and George Williams (regulatory), and project attorney Elizabeth Fox (intellectual property).