Franchise withdraws $650 million offering of five-year secured notes

By Abigail W. Adams

Portland, Me., Nov. 4 – Franchise Group Inc. has withdrawn its offering of $650 million five-year senior secured notes due to unfavorable market conditions, the company announced in a press release.

“Last week, we launched an opportunistic bond offering into a strong bond market. As markets have weakened substantially and we have witnessed several other issuers price transactions wide of their intended targets, we are withdrawing our proposed offering now, but will continue to evaluate our options when market conditions warrant,” CEO Brian Kahn stated in the release.

The company began a telephone roadshow on Oct. 27 with the deal initially slated to price on Oct. 30.

Initial price talk was in the 8¼% area, sources said.

Morgan Stanley & Co. LLC (lead left), J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Citizens Capital Markets Inc. were joint bookrunners for the Rule 144A and Regulation S offering.

Franchise Group is a Virginia Beach, Va.-based multi-brand operator of franchised and franchisable businesses.

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