(Bloomberg) -- Zaxby’s, a restaurant chain known for its chicken wings and fingers, plans to borrow $285 million by selling asset-backed bonds, its second such deal since 2021.

Guggenheim Securities is putting together the whole-business securitization, for which Zaxby’s is pledging substantially all of its assets — including existing and future franchise agreements, royalties and fees — as collateral. The proceeds will be used to fund a payout to shareholders in the form of a dividend, among other expenditures.

The new debt will have two tranches, each of which has already been rated BBB by Kroll.

Guggenheim declined to comment. A representative for Zaxby’s didn’t respond to requests for comment.

There has been $2 billion worth of WBS issuance so far this year, roughly twice the amount that had been issued around the same time last year, according to data compiled by Bloomberg News. More companies have been tapping the broader structured debt market this year, encouraged by spreads tightening on asset-backed securities. 

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Zaxby’s, founded in 1990, operates 941 units across 17 states, including in its core markets Georgia, South Carolina and North Carolina. The company’s menu includes chicken in various forms — fingers, wings, salads and sandwiches. 

--With assistance from Charles Williams.

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