IHOP Corp./ Applebee's International Securitization
IHOP launched a set of securitizations valued at about twice that of its stock market capitalization in order to finance its acquisition of Applebee's. The securitizations were a $1.794 billion deal with an additional $100 variable funding note, backed by Applebee's franchise fees, restaurant cash flows and real estate assets, and a $245 million securitization backed by IHOP franchise fees and other cash flows. Lehman Brothers structured the deal, FGIC provided the wrap on the IHOP securitization and Assured Guaranty was the lead insurer on a portion of Applebee's securitized debt. The $245 million was raised through IHOP's existing securitization structure. Rob Krugel and Cory Wishengrad led the effort at lead underwriter Lehman Brothers.