Roark plans $5 billion structured debt financing for Subway

private equity firm Roark Capital Group He hopes to borrow nearly $5 billion in a little-known debt market to help permanently finance his investment in the American sandwich chain. Undergroundafter getting temporary financing from banks.

A group of seven banks has pledged to provide $4.9 billion of temporary financing that is expected to become one of the largest corporate securitization deals in history, according to people with knowledge of the matter, who asked not to be named because they did not They are authorized to speak in public. Company-wide securitizations require companies to essentially mortgage all of their cash-generating assets (such as royalties, franchise rights, and intellectual property) to raise capital.