...November 22, 2021 - Franchise Group Inc. (FRG) is issuing new debt to fund the acquisition of Badcock Home Furniture. - We affirmed our existing ratings on FRG, including our 'B+' issuer credit rating, given our view of FRG's improved business prospects following the acquisition, offset with higher pro forma leverage. - At the same time, we assigned our '##-' issue-level and '2' recovery ratings to the new $425 million first-lien term loan. - The stable outlook reflects our expectation for the Badcock acquisition to strengthen FRG's revenue base and profit generation, leading to improved cash flow generation. NEW YORK (S&P Global Ratings) Nov. 22, 2021--S&P Global Ratings today took the rating actions listed above. FRG's acquisition of Badcock will improve profitability and cash flow generation, offsetting an initial increase in leverage. The acquisition increases leverage to the mid-4x area, but we believe there is room for leverage to improve sequentially on higher EBITDA base and subsequent...
