Research Update: Franchise Group Inc. Debtor-In-Possession Facility Rated 'CCC+'

S&P Global ratings assigned a point-in-time 'CCC+' issue-level rating to Franchise Group Inc.'s (FRG) $750 million debtor-in-possession (DIP) facility, which consists of a $250 million new money term loan and $500 million roll-up term loan. The company has been under Chapter 11 bankruptcy protection since its filing on Nov. 3, 2024. Our 'D' issuer credit rating on Franchise Group is unchanged. The 'CCC+' issue-level rating reflects our view of the credit risk borne by DIP term loan lenders and does not indicate ratings we may assign to exit facilities or the reorganized company after it emerges from bankruptcy. The DIP issue-level rating is a point-in-time rating effective only as of the date of this report. S&P Global Ratings will not

...- S&P Global ratings assigned a point-in-time '###+' issue-level rating to Franchise Group Inc.'s (FRG) $750 million debtor-in-possession (DIP) facility, which consists of a $250 million new money term loan and $500 million roll-up term loan. The company has been under Chapter 11 bankruptcy protection since its filing on Nov. 3, 2024. - Our 'D' issuer credit rating on Franchise Group is unchanged. - The '###+' issue-level rating reflects our view of the credit risk borne by DIP term loan lenders and does not indicate ratings we may assign to exit facilities or the reorganized company after it emerges from bankruptcy. - The DIP issue-level rating is a point-in-time rating effective only as of the date of this report. S&P Global Ratings will not monitor, review, or provide ongoing surveillance of this rating....

Research Update