Franchise Group plans $1.3 billion of loans with Pet Supplies buy

By Sara Rosenberg

New York, Jan. 25 – Franchise Group Inc. has received a commitment for $1.3 billion in new term loans to help fund its acquisition of Pet Supplies Plus and to refinance an existing term loan, according to an 8-K filed with the Securities and Exchange Commission on Monday.

JPMorgan, Citizens Bank and Credit Suisse provided the debt commitment.

Under the agreement, Pet Supplies Plus, a Livonia, Mich.-based omnichannel retail chain and franchisor of pet supplies and services, is being bought from Sentinel Capital Partners for about $700 million.

Closing is expected in March, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Pro forma for the transaction, net total leverage will be under 3.4x.

Franchise Group is a Virginia Beach, Va.-based operator of franchised and franchisable businesses, including Liberty Tax Service, Buddy’s Home Furnishings, American Freight and the Vitamin Shoppe.

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