Cake Company Seeks $240 Million Selling Franchise-Backed Bonds

Nothing Bundt Cakes, a chain of bakeries known for one type of cake, is marketing a $240 million bond backed by nearly all of its assets, adding to the stream of esoteric offerings in the securitized debt market.

The Texas-based cake maker is borrowing in the whole-business asset-backed securities market for the third time after its initial foray in 2021, when it sold $355 million in bonds. This time, proceeds from the bond sale led by Barclays Plc will be used to refinance all of the company’s 2023-1 Class A notes and possibly to fund a payout to ...