Sandwich Chain Jersey Mike’s to Raise $400 Million in Asset Backed Securities

Jersey Mike’s is planning to sell $400 million of asset backed securities to potentially help pay out money to Blackstone Inc., the private equity firm that bought a majority stake in the sandwich restaurant chain earlier this year.

The company is selling a type of debt known as whole business securitization bonds, which are backed by Jersey Mike’s assets including fees from franchises and US trademarks. The securities are set to be rated BBB by S&P Global Ratings and Kroll Bond Rating Agency, according to a person with knowledge of the transaction.