Moody’s rates Franchise loan Ba3

Moody’s Investors Service said it assigned ratings to Franchise Group, Inc.'s planned senior secured term loans, including a Ba3 rating on the expected $425 million first-lien senior secured term loan due 2023 and a B3 rating on the proposed $150 million second-lien senior secured term loan due 2023.

Concurrently, the agency affirmed Franchise Group's other ratings, including its B1 corporate family rating, B1-PD probability of default rating, Ba3 rating on its first-lien senior secured term loan due 2026 and B3 on its second lien senior secured term loan due 2026. Franchise Group's SGL-2 speculative grade liquidity rating is unchanged.

Franchise Group will use the term loan proceeds to acquire W.S. Badcock Corp. for about $550 million, pay fees and add cash to the balance sheet.

The outlook is stable.

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