Driven Brands Completes $500 Million Debt Refinancing Through Securitization

10/21/2025 – 07:15 AM

CHARLOTTE, N.C. – Driven Brands Holdings Inc. (NASDAQ: DRVN), a major player in the automotive services sector, announced today the completion of a $500 million offering of Series 2025-1 Fixed Rate Senior Secured Notes, Class A-2 (A-2 Notes), by certain subsidiaries. The notes mature in October 2055, with an anticipated repayment date in October 2030.

The company intends to utilize the proceeds, along with funds from its revolving credit facility, to refinance its Series 2019-1 and Series 2022-1 Class A-2 Fixed Rate Senior Secured Notes. A portion of the funds will also cover transaction-related fees and expenses, with the remaining allocated for general corporate purposes.

This transaction marks Driven Brands’ twelfth whole business securitization issuance, structured through Driven Brands Funding, LLC and Driven Brands Canada Funding Corporation. The A-2 Notes were priced with a coupon of 5.296% and feature a five-year tenor to the anticipated repayment date. This type of securitization allows Driven Brands to leverage its franchise network and consistent revenue streams to access capital markets at competitive rates.

Credit rating agencies Kroll Bond Rating Agency and S&P Global Ratings have assigned ratings of BBB and BBB-, respectively, to the A-2 Notes, aligning with the ratings received by the Series 2024-1 Fixed Rate Senior Secured Notes, Class A-2, issued in July 2024. These ratings reflect confidence in Driven Brands’ stable business model and strong cash flow generation, crucial factors for investors in the current economic climate.

The A-2 Notes were offered exclusively to qualified institutional buyers under Rule 144A and to persons outside the United States under Regulation S of the Securities Act. The offering was not registered under the Securities Act of 1933, as amended, or any state securities laws. This announcement does not constitute an offer to sell or a solicitation of an offer to buy these securities in any jurisdiction where such offer, solicitation, or sale would be unlawful.

About Driven Brands

Driven Brands, headquartered in Charlotte, NC, stands as North America’s largest automotive services company. Its portfolio includes a diverse array of consumer and commercial automotive services, ranging from paint and collision repair to oil changes, maintenance, and car washes. The company operates a vast network of approximately 4,800 locations across the United States and 13 other countries. Its prominent brands include Take 5 Oil Change, Meineke Car Care Centers, Maaco, 1-800-Radiator & A/C, Auto Glass Now, and CARSTAR.

Driven Brands leverages its scale and diversified service offerings to cater to a broad customer base, servicing tens of millions of vehicles annually. This extensive network and high service volume translate into significant financial performance. Driven Brands’ network generates approximately $2.0 billion in annual revenue from approximately $6.2 billion in system-wide sales.

Analysts note that this latest financing move provides Driven Brands with increased financial flexibility and allows the company to optimize its capital structure, potentially freeing up resources for further expansion and strategic acquisitions in the highly fragmented automotive services market. The company’s focus on a diverse range of services positions it favorably to navigate economic fluctuations and maintain a consistent revenue stream.