Franchise Group, Inc. Announces Master Receivables Purchase Agreement

Strategic Insights -

Franchise Group, Inc. has announced that its wholly-owned subsidiary, W.S. Badcock Corporation, has entered into a Master Receivables Purchase Agreement with B. Riley Receivables, LLC, a transaction valued at $400 million. The agreement allows for the purchase of existing consumer credit receivables and future receivables originated by W.S. Badcock Corporation. The deal is intended to aid the company in repaying a portion of its existing debt.

Key Takeaways:

  • Franchise Group, Inc. has announced a Master Receivables Purchase Agreement with B. Riley Receivables, LLC, valued at $400 million.
  • The agreement allows for the purchase of existing consumer credit receivables and future receivables originated by W.S. Badcock Corporation.
  • The deal is intended to aid the company in repaying a portion of its existing debt.
  • The agreement includes a 90-day period during which W.S. Badcock Corporation may sell new receivables to the Purchaser.
  • The company has agreed to guarantee the performance by W.S. Badcock Corporation of its obligations under the Receivables Purchase Agreement and the Servicing Agreement.
  • The transaction represents a major step in the company's efforts to reduce its debt burden and enhance its financial position.
  • The company has issued a press release announcing the Receivables Transaction and the Debt Repayment, which is included as Exhibit 99.1 to the Current Report on Form 8-K.

Statistics:

  • The transaction is valued at $400 million.
  • The agreement allows for the purchase of existing consumer credit receivables and future receivables originated by W.S. Badcock Corporation.
  • The deal is intended to aid the company in repaying a portion of its existing debt, which is expected to reduce the company's debt burden by a projected amount.
  • The 90-day period during which W.S. Badcock Corporation may sell new receivables to the Purchaser begins on the Initial Closing Date, December 20, 2021.
  • The company has agreed to guarantee the performance by W.S. Badcock Corporation of its obligations under the Receivables Purchase Agreement and the Servicing Agreement.

Sources:

  • FORM 8-K (Current Report) filed by Franchise Group, Inc. with the Securities and Exchange Commission on December 21, 2021.
  • Securities Exchange Act of 1934, Section 13 or 15(d).
  • Master Receivables Purchase Agreement, dated as of December 20, 2021, between W.S. Badcock Corporation and B. Riley Receivables, LLC (Exhibit 2.1 to the Current Report on Form 8-K).
  • Servicing Agreement, dated as of December 20, 2021, between W.S. Badcock Corporation and B. Riley Receivables, LLC (Exhibit 10.1 to the Current Report on Form 8-K).
  • Press Release, dated as of December 20, 2021 (Exhibit 99.1 to the Current Report on Form 8-K).