Subway's Debt Plan to Secure $10 Billion Sale

Subway's financial adviser, JPMorgan Chase & Co, has offered a $5 billion debt financing package to private equity firms bidding for the sandwich chain, hoping to secure a sale price of over $10 billion. The debt financing is based on a mix of loans and bonds and is equivalent to 6.75 times Subway's 12-month earnings before interest, taxes, depreciation and amortization of about $750 million. Second-round bids for Subway came in last week from more than 10 private-equity firms, including Bain Capital, TPG Inc, Advent International Corp, TDR Capital, Goldman Sachs Group Inc's buyout arm and Roark Capital.