Franchise Group lifts term loan to $300 million, firms OID at 95

By Sara Rosenberg

New York, Jan. 31 – Franchise Group Inc. upsized its non-fungible add-on first-lien term loan due March 10, 2026 to $300 million from $200 million and finalized the original issue discount at 95, the tight end of the 94 to 95 talk, according to a market source.

Pricing on the add-on term loan remained at SOFR+CSA plus 475 basis points with a 0.75% floor.

CSA is 11.4 bps one-month rate, 26.2 bps three-month rate and 42.8 bps six-month rate.

The add-on term loan still has 101 soft call protection for six months, amortization of 1% per annum and 50 basis points MFN with a 12-month sunset.

JPMorgan Chase Bank is the lead arranger on the deal.

Proceeds will be used to repay ABL credit facility borrowings.

Franchise Group is a Delaware, Ohio-based owner and operator of franchised and franchisable businesses.

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