Franchise Group offers $25-par cumulative perpetual preferred stock

By James McCandless

San Antonio, Sept. 15 – Franchise Group, Inc. plans to price an offering of $25-par series A cumulative perpetual preferred stock, according to a 424B5 filing with the Securities and Exchange Commission.

B. Riley Securities, Inc., Incapital LLC, D.A. Davidson & Co., Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc. and National Securities Corp. are the bookrunners.

Dividends are payable on Jan. 15, April 15, July 15 and Oct. 15, starting on Oct. 15, 2020.

The preferreds are redeemable after five years. Prior to that, the preferreds are redeemable within 90 days after a delisting event at par or 120 days after a change of control at par.

Franchise Group plans to use the proceeds for general corporate purposes, which may include future acquisitions, the repayment of outstanding debt, capital expenditures and working capital.

The company plans to list the preferreds on the Nasdaq under the symbol “FRGAP.”

Franchise Group is a Virginia Beach-based operator of franchised and franchisable businesses.

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