Franchise Group offers additional $25-par 7.5% series A cumulative perpetual preferreds

By Taylor Fox

New York, Jan. 11 – Franchise Group, Inc. plans to price an offering of additional $25-par series A cumulative perpetual preferred stock, according to a 424B5 filing with the Securities and Exchange Commission.

The additional preferred stock sold in this offering will be consolidated, form a single series and be fully fungible with all outstanding series A preferred stock.

There is $31.25 million, or 1.25 million shares, of the series A preferred stock outstanding resulting from the pricing of the original preferred offering on Sept. 16.

Dividends are payable quarterly on Jan. 15, April 15, July 15 and Oct. 15. The first dividend on the additional series A preferred stock sold in this offering will be payable on April 15.

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

Co-managers are Aegis Capital Corp., Boenning & Scattergood, Inc. and Huntington Securities, Inc.

The preferreds are redeemable on Sept. 16, 2025. 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 preferreds are listed on Nasdaq under the symbol “FRGAP.”

Franchise Group is a Virginia Beach-based 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.