(Bloomberg) — Jersey Mike’s, a sandwich maker that started operations in 1956, plans to raise $500 million in a small corner of U.S. credit markets.

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The Manasquan, New Jersey-based company kicked off early marketing for a $500 million asset-backed security offering supported by existing and future franchise and development agreements, according to a person with knowledge of the transaction. The funds raised will be used for investments in the business and a dividend to the equity holder, said the person, who asked not to be identified as the details are private.

Companies have sold a record $14.6 billion in whole business securitizations so far this year, according to data compiled by Bloomberg, a rise of nearly $10 billion from full-year 2020 and $9.9 billion issued in 2019. The increase in WBS has come as investors seek returns in yield-starved pockets of credit markets.

Last week, Self Esteem Brands, a franchiser of businesses including its flagship gyms Anytime Fitness, priced a $505 million ABS that was baced by franchise agreements, royalties and fees.

In the latest Jersey Mike’s deal, a $250 million tranche rated BBB by S&P Global Ratings is being marketed while another slice of the same size will be preplaced with investors, who asked not to be identified as the details are private.

Guggenheim Securities is managing the transaction.

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