By Cady Vishniac
Detroit, Jan. 11 – Franchise Group, Inc. sold an additional $75 million of 7.5% $25-par series A cumulative perpetual preferred notes at $25.20 on Tuesday, according to an FWP 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 the outstanding $31.25 million, or 1.25 million shares, of the series A preferred stock from the original offering on Sept. 16.
There is an option to purchase an additional 446,428 shares.
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.
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.
B. Riley Securities, Inc., Incapital LLC, D.A. Davidson & Co., Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc., National Securities Corp. and William Blair & Co., LLC were the bookrunning managers.
Gross proceeds from the sale are $75,000,013.20. Franchise Group plans to use the net 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.
| Issuer: | Franchise Group, Inc.
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| Amount: | $75 million, or 2,976,191 shares
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| Greenshoe: | Up to 446,428 shares
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| Description: | Series A cumulative perpetual preferred stock
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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 William Blair & Co., LLC
|
| Co-managers: | Aegis Capital Corp, Boenning & Scattergood, Inc. and Huntington Securities, Inc.
|
| Coupon: | 7.5%
|
| Price: | $25.20
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| Call feature: | 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
|
| Pricing date: | Jan. 12
|
| Settlement date: | Jan. 15
|
| Distribution: | SEC registered
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| Listing: | Nasdaq: FRGAP
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