Franchise Group Inc. 'B+' Rating Affirmed On Proposed Pet Supplies Plus Acquisition; Outlook Stable; New Debt Rated

Franchise Group Inc. plans to issue new debt to fund the acquisition of Pet Supplies Plus and refinance its existing debt. We are affirming our 'B+' issuer credit rating on Franchise Group Inc., reflecting our expectation for continued EBITDA expansion following the acquisition. At the same time, we are assigning a 'BB' issue-level rating and a '1' recovery rating to the company's proposed first out term loan, a 'B-' issue-level rating and '6' recovery rating to the proposed last out term loan, and a 'B-' issue-level rating and a '6' recovery rating to the proposed unsecured debt. The stable outlook reflects our expectation for improving EBITDA and cash flow generation as the company benefits from cost synergies from its recent

...February 3, 2021 - Franchise Group Inc. plans to issue new debt to fund the acquisition of Pet Supplies Plus and refinance its existing debt. - We are affirming our 'B+' issuer credit rating on Franchise Group Inc., reflecting our expectation for continued EBITDA expansion following the acquisition. - At the same time, we are assigning a '##' issue-level rating and a '1' recovery rating to the company's proposed first out term loan, a 'B-' issue-level rating and '6' recovery rating to the proposed last out term loan, and a 'B-' issue-level rating and a '6' recovery rating to the proposed unsecured debt. - The stable outlook reflects our expectation for improving EBITDA and cash flow generation as the company benefits from cost synergies from its recent acquisitions. NEW YORK (S&P Global Ratings) Feb. 3, 2021--S&P Global Ratings today took the rating actions listed above. The Pet Supplies Plus purchase is in line with FRG's acquisitive growth strategy, and further diversifies the company's...

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