KBRA Assigns Preliminary Ratings to Wingstop Funding LLC Senior Secured Notes, Series 2018-1

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two
classes of notes (the “Notes”) issued by Wingstop Funding LLC, a whole
business securitization.

This transaction represents Wingstop Funding LLC’s first securitization.
Wingstop Restaurants Inc. will contribute certain of its
revenue-generating assets to Wingstop Funding LLC (the “Issuer”). The
Issuer is expected to issue $25 million of Series 2018-1, Class A-1
Notes (the “Class A-1 Notes”) and $300 million Series 2018-1, Class A-2
Notes (the “Class A-2 Notes” and together with the Class A-1 Notes, the
“Series 2018-1 Notes”).

The collateral includes existing and future franchise and development
agreements, existing and future company-operated restaurant royalties,
certain vendor rebate contracts and intellectual property. The proceeds
from the offered notes will be used to refinance its existing credit
facilities, pay certain transaction expenses and for general corporate
purposes, which may include a return of capital to shareholders.

As of September 29, 2018, the Wingstop system included 1,215 locations
with system-wide sales of approximately $1.2 billion. The transaction
includes royalty payments from 1,189 franchise locations and 26
company-operated restaurants, representing approximately 98% and 2% of
total system-wide locations, respectively. As of September 29, 2018,
approximately 89% of the restaurant locations were within the United
States, while the remainder were from locations outside of the United
States, across 91 foreign countries.

Wingstop is the largest fast casual chicken wings-focused restaurant
chain in the world. The Company is best known for its cooked-to-order,
hand-sauced and tossed chicken wings. The Company features wings as its
“center-of-the-plate” specialty, which along with fries and sides
account for over 90% of sales.

Notes       Preliminary Rating       Initial Principal Amount
Series 2018-1, Class A-1 Notes       BBB (sf)       $25,000,000
Series 2018-1, Class A-2 Notes       BBB (sf)       $300,000,000

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)


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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
designated as a designated rating organization by the Ontario Securities
Commission for issuers of asset-backed securities to file a short form
prospectus or shelf prospectus, is recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider, and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.

1 Effective October 31,
2018, Wingstop will close all 11 branded restaurants in the Philippines.


Xilun Chen, Senior
(646) 731-2431
Narsimhamurthy, Associate Director
+353 1 669 2682
Barkwell, Associate Director
(646) 731-3304
Olaleye, Associate Director
(646) 731-2432