By James McCandless
San Antonio, Sept. 16 – Franchise Group, Inc. priced a $30 million offering of $25-par series A cumulative perpetual preferred stock with a dividend of 7.5%, according to an FWP filing with the Securities and Exchange Commission.
There is a $4.5 million greenshoe.
B. Riley Securities, Inc., Incapital LLC, D.A. Davidson & Co., Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc., National Securities Corp. and Aegis Capital 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 on or after Sept. 16, 2025 at par. 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.
| Issuer: | Franchise Group, Inc.
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| Description: | Series A cumulative perpetual preferred stock
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| Amount: | $30 million, or 1.2 million shares
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| Greenshoe: | $4.5 million, or 180,000 shares
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| Maturity: | Perpetual
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| Bookrunners: | B. Riley Securities, Inc., Incapital LLC, D.A. Davidson & Co., Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc., National Securities Corp. and Aegis Capital Corp.
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| Dividend: | 7.5%
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| Price: | Par of $25.00
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| Yield: | 7.5%
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| Call: | On or after Sept. 16, 2025 at par; prior to that, within 90 days after a delisting event at par or 120 days after a change of control at par
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| Pricing date: | Sept. 16
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| Settlement date: | Sept. 18
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| Distribution: | SEC registered
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| Listing: | Nasdaq: FRGAP
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