Franchise Group gives notice to redeem all 7.5% perpetual preferreds

By Wendy Van Sickle

Columbus, Ohio, July 19 – Franchise Group Inc. issued a notice of redemption for all outstanding shares of its 7.5% series A cumulative perpetual preferred stock (Cusip: 35180X204), according to a news release.

The company is redeeming the preferreds in connection with its previously announced merger agreement dated May 10 with Freedom VCM, Inc. and Freedom VCM Subco, Inc. The redemption is contingent upon the company’s successful completion of the merger. If the merger is terminated, the redemption will be deemed rescinded.

The preferreds will be redeemed in cash at a redemption price equal to $25 per share plus any accrued dividends up to but excluding the redemption date. The redemption price is expected to be paid on Aug. 18 or such later date as the parties to the merger may agree but in no event later than one business day following the effective time of the merger.

Equiniti Trust Co., LLC is the redemption agent.

Franchise Group is a Delaware, Ohio-based owner and operator of franchised and franchisable businesses.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.