Franchise Group details $575 million term loans for Badcock buy

Chicago, Nov. 24 – Franchise Group Inc. provided details about $575 million in new term loans that were being used to fund the acquisition of W.S. Badcock Corp., according to an 8-K filed with the Securities and Exchange Commission.

With JPMorgan Chase Bank, NA as administrative agent and collateral agent, the company entered into a $425 million senior secured term loan.

The term loan matures Nov. 22, 2023.

Interest is SOFR plus 475 basis points.

With Alter Domus (US) LLC as administrative agent and collateral agent on a second-lien credit agreement, the company borrowed a $150 million senior secured term loan.

With a Nov. 22, 2023 maturity date, interest will be SOFR plus 750 bps with a 1% SOFR floor.

Neither loan is subject to amortization payments.

JPMorgan Chase Bank was the lead arranger and bookrunner for the second-lien loan.

The transaction closed on Nov. 22.

Franchise Group is a Virginia Beach, Va.-based owner and operator of franchised and franchisable businesses. W.S. Badcock is a home furnishings company.

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