Franchise Group receives $150 million asset-based revolver

Chicago, March 15 – Franchise Group Inc. entered into a third amended and restated agreement for an ABL revolving loan facility with JPMorgan Chase Bank, NA listed as agent, according to an 8-K filing with the Securities and Exchange Commission.

The revolver size is the lesser of $150 million or a specified borrowing base on a percentage of eligible credit card receivables, accounts and inventory less certain reserves.

There are separate borrowing caps for the subsidiary borrowers, based on the same criteria.

The loan will mature on March 10, 2025.

Interest will be based on a range between Libor plus 175 basis points and 225 bps.

There is a 0% Libor floor.

The amended agreement closed March 10.

Subsidiary borrowers listed on the loan were Valor Acquisition, LLC, Franchise Group Newco Intermediate AF, LLC and Franchise Group Newco PSP, LLC.

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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