HomeServe is exploring a potential $1.8 billion asset-backed financing that could return $600 million to its owner, Brookfield Asset Management (NYSE:BAM).
The home repair services company is working with lenders on a whole-business securitization arranged by Jefferies Financial Group, according to Bloomberg.
The proposed financing would be backed by HomeServe’s assets and would involve the issuance of approximately $1.8 billion of bonds. The proceeds would be used to refinance existing borrowings and fund a $600 million dividend to Brookfield.
Discussions are still ongoing, and details are subject to change, including pricing and tranche size, sources noted.
The planned financing would be divided into several components and sold to investors in both public and private markets.
The company is also considering two privately placed tranches. A seven-year portion is being discussed at a spread in the mid-2 percentage-point range over Treasuries, while a 10-year debt could carry a spread in the upper-2 percentage-point range. The transaction is expected to be completed this month.
Whole-business securitizations have become an increasingly attractive funding option for companies looking to borrow at lower costs, with lenders taking claims on a broad pool of the company’s assets and cash flows.
The market has seen a sharp increase in activity in 2026. Bloomberg data found that companies have issued approximately $7.9 billion of whole-business securitization debt so far this year, a 76% increase from the comparable period last year.
Zaxby’s tapped the whole-business securitization market in 2024, using the structure to raise debt backed by the restaurant chain’s franchise-related cash flows. Subway followed suit later that year with a $2.34 billion franchise-backed debt deal.
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