So far, private equity firms haven't seen the need to embrace securitization of certain income-generating assets. But that may change. Sponsor-owned Domino's Pizza will serve up (sorry) $1.9 million in bonds backed by franchise royalty fees and other revenues in the next few weeks. Some think this might pry open the door. The deal was structured by Lehman Brothers. Some say that private equity firms are intrigued by the savings against traditional financing arrangements. The downside is some expected onerous covenants that might be attached to such bonds. Bain Capital is a major owner of Domino's. These sorts of IPO deals recall the IP deals of yesteryear. The genesis of these deals may have been when Standard & Poor's gave sponsors the okay to create high-rated debt on buyouts after it codified a corporate loan securitization method.

For more:
- here's an article from Financial News Online