IFR Awards Blackstone’s ServPro Asset-Backed Securitization Deal of the Year
The International Financing Review, a Thomson Reuters publication, named The Blackstone Group’s $555 million ServPro securitization as its “Asset-Backed Securitization Deal of the Year.” Ropes & Gray advised Blackstone in the transaction.
The Servpro securitization, which closed in October 2019, was the year’s “strongest debut issuer in the growing whole business securitization market,” said IFR in a story published on Dec. 13. The transaction featured “strong investor demand” allowing lead bank Barclays to “push boundaries with the structure and pricing.”
The deal drew over $3.7 billion of demand from around 50 accounts, IFR said, despite the new debt pushing leverage (total debt to run-rate adjusted Ebitda) at Servpro to 7.5 times – the highest ever seen on a franchise business in whole business asset-backed securitization.
Servpro is the leading U.S. brand in repairing residential and commercial properties that have been damaged by water, fire or mold. Blackstone acquired Servpro in March 2019.
The team advising Blackstone was led by finance partner Patricia Lynch (Boston), and included tax partner Lee Allison (New York) and IP transactions partner Edward Black (Boston) and mergers & acquisitions partner Craig Marcus (Boston) as well as business restructuring partner Jim Wilton (Boston), and asset management partner Anna Lawry (London).