Kirkland Advises HomeServe on $2.035 Billion Inaugural Whole Business Securitization

Kirkland & Ellis represented HomeServe USA Corp., the largest provider of home infrastructure protection plans in North America and a Brookfield portfolio company, on its inaugural $2.035 billion whole business securitization. The notes are secured by substantially all of the revenue-generating assets of HomeServe, including home repair plans, service contracts and agreements with utility and municipality partners. HomeServe provides repair or replacement services for critical home infrastructure to customers in 48 states, the District of Columbia and three Canadian provinces.

The Series 2026-1/2/3 Notes were issued in multiple classes, including $650 million of Series 2026-1 Class A-2 Notes, $750 million of Series 2026-2 Class A-2 Notes, and $400 million of Series 2026-3 Class A-2 Notes. The issuance also included a $200 million variable funding facility, which will provide working and growth capital, and $35 million of Series 2026-1 Class A-1-L Notes, which will provide additional liquidity support to noteholders. The Class A-2 Notes received investment-grade ratings from both Moody’s (Baa2) and Kroll Bond Rating Agency (BBB). To optimize distribution, the term notes were offered under both Rule 144A and Section 4(a)(2) formats. The transaction structure allows HomeServe to monetize its brand and assets and provides HomeServe with the flexibility to issue additional series if certain requirements are met.

The Kirkland team included structured finance lawyers Evan Berman, Jeff Zhou, Michael Urschel, Alissa Carbonara, Brooke Brimo, Wilson Carneiro, Aaqib Mahmood and Logan Carroll; tax lawyers Jon Nelsen, Richard Husseini, David Wheat and Jon Herlin; technology & IP transactions lawyers Aseem Jha and Ben Kovach; investment funds regulatory lawyer Philip Giglio; investment funds ERISA lawyer Joseph Lifsics; and employee benefits lawyer Caitlin Pyrce.