Zaxby’s Completes $985 Million Whole-Business Securitization

Paul, Weiss represented Zaxby’s Operating Company L.P., a Georgia-based chain of 911 restaurants across 17 states in the Southern U.S., in connection with its inaugural whole-business securitization. Under the terms of the transaction, Zaxby’s Funding LLC issued three classes of notes totaling $985 million. The transaction collateral included existing and future domestic franchise agreements and associated royalties and fees, royalties and profits from company-operated restaurants, certain vendor rebates, rental income, other fees and income and intellectual property. Proceeds from the offered notes will be used to refinance the company’s existing indebtedness, to pay certain transaction fees and expenses, and for general corporate purposes. Zaxby’s is a portfolio company of Goldman Sachs Private Equity.

The Paul, Weiss team included corporate partner Jordan Yarett and counsel Christopher Poggi and Mikhel Schecter; real estate partner Peter Fisch; intellectual property partner Claudine Meredith-Goujon; executive compensation counsel Jacob Glazeski and Meghan Fox; and litigation counsel Steven Herzog.