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The A1 VFN tranche is a variable funding note whose proceeds can be used for general corporate purposes, including acquisitions.
The riskiest portion of the securitization, worth $65 million was wiped out earlier this month after the loan's sale left just $164 million to distribute to creditors.
The deal taps into insurers' growing demand for long-dated private credit investments. More than a dozen investors, are set to participate in the transaction.
Subway has asked Morgan Stanley and Barclays Plc to put together the debt package in the form of a whole business securitization, arranging in-person events in Boston, New York and Los Angeles starting May 8.
Consolidation has slowed since the pandemic, but UMB's agreement to buy Heartland Financial — the largest deal in three years — is one of several merger announcements in the past two weeks. Talks among other potential buyers and sellers are said to be picking up.
