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Franchise partial greenshoe lifts 7.5% preferreds to $79.5 million
By Wendy Van Sickle
Columbus, Ohio, Jan. 15 – Underwriters for Franchise Group, Inc.’s 7.5% $25-par series A cumulative perpetual preferred notes exercised $7.7 million of their over-allotment option, increasing the total deal size to $79.5 million.
The underwriters purchased 314,934 additional shares under their greenshoe for up to 446,428 shares, increasing the total offering to 3,291,125 shares, according to a news release.
The company priced $75 million of preferred stock, or 2,976,191 shares at $25.20 per share, in an add-on on Tuesday, as previously reported.
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.
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.
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.
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