NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to two classes of EWC Master Issuer LLC Series 2022-1 Bonds, a full corporate securitization.
Series 2022-1 Class A-1 Notes and Series 2022-1 Class A-2 Notes (together, the Notes), expected to be issued by EWC Master Issuer LLC (the Principal Issuer), represent European Wax Center, Inc.’ s (EEC or the Company) first securitization. The structure of the transaction is structured as a “Whole Business Securitization” (WBS) in which EWC and certain of its affiliates contribute substantially all of their income-generating assets to the primary issuer. Coverage includes existing and future franchise and area development agreements, supply contracts, profits from wholesale and retail product sales, royalties and other franchise rights, and intellectual property. Proceeds from the Offered Notes will be used to repay in full all borrowings under the Company’s existing credit facility, fund certain transaction accounts and pay certain general corporate expenses and purposes, which is expected to include a return of capital. to shareholders.
The Company provides out-of-home (OOH) waxing services in the United States. The OOH waxing market is the fastest growing segment of the broader hair removal market, which the company estimates to be around $18 billion nationwide. The system provided more than 20 million waxing services across EWC’s 853 locations and generated approximately $797 million in systemwide sales for the twelve months ending (LTM) 25 December 2021 (Q4 2021). The network is 99% franchised by number of locations and is spread across 44 states and Washington DC as of the same date.
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