Franchise Group eyes $1 billion increase to debt facilities for possible Kohl’s buy

By Wendy Van Sickle

Columbus, Ohio, June 6 – Franchise Group Inc. is looking at increasing its secured debt facilities by abut $1 billion for its possible acquisition of Kohl’s Corp., according to a news release Monday evening.

Franchise said it has entered into a three-week exclusive negotiation period to acquire Kohl’s for $60.00 per share in cash.

If Franchise and Kohl’s enter into a definitive agreement, Franchise said it plans to contribute about $1 billion of capital to the transaction, all of which is expected to be funded through a corresponding increase in the size of its secured debt facilities.

A majority of the financing for the transaction is anticipated to be provided on the basis of the real estate assets of Kohl’s. Other than the increased secured debt facilities, none of the financing for the transaction is expected to be recourse to Franchise Group.

Franchise Group is a Virginia Beach, Va.-based owner and operator of franchised and franchisable businesses. Kohl’s is a retail-department store chain based in Menomonee Falls, Wisc.

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