We are tracking Authority Brands' $461,000,000 whole-business securitization, its third such issuance, announced May 22, 2026.
The structure combines $286,000,000 in Class A-2 fixed-rate term notes with up to $175,000,000 in Class A-1 variable-funding revolving notes. Class A-2 notes carry an investment-grade BBB rating from both KBRA and DBRS Morningstar.
Apax Partners sponsors Authority Brands, whose twelve national franchise brands include One Hour Heating and Air Conditioning and Benjamin Franklin Plumbing. Notes are secured by royalty streams and brand intellectual property, with proceeds directed to working capital and growth.
Kirkland and Ellis advised Authority Brands, while Mayer Brown advised the note purchasers.
Our data indicates this is a debt-market confidence signal rather than an acquisition. Investment-grade securitization at this size points to strong franchise cash-flow visibility and gives the sponsor low-cost growth capital. We read it as a maturing capital-structure playbook now entering HVAC-adjacent franchising at a meaningful scale.