Pathlight Capital Upsizes Term Loan Credit Facility to $200.6MM in Connection with Franchise Group Buyout

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Sep 13, 2023, 08:45 ET

BOSTON, Sept. 13, 2023 /PRNewswire/ -- Pathlight Capital LP ("Pathlight") is pleased to announce the closing of a $133.5MM upsize ("Upsize Facility") to the existing senior secured term loan credit facility to a Franchise Group, Inc. ("Franchise Group") affiliated SPV to support an incremental purchase of a portfolio of performing receivables from W.S. Badcock Corporation ("Badcock" or the "Company"), one of the largest home-furnishing retailers in the southeast and subsidiary of Franchise Group.

The closing of the Upsize Facility results in a $200.6MM total credit facility, of which Pathlight serves as the administrative agent. The Upsize Facility provided additional liquidity in connection with the management-led acquisition of Franchise Group.

"For the third time in the last year, Pathlight has demonstrated their expertise in complex transactions," said Brian Kahn, President and CEO of Franchise Group. "The Pathlight team are trustworthy counterparts, and we appreciate their continued support."

Christopher Arnold, Managing Director of Pathlight Capital, said, "Since the closing of the first transaction in September 2022, Pathlight has provided over $400 million of financing to the SPV. We value the relationship with the FRG management team and continue to support their ongoing initiatives."

About Pathlight Capital
Pathlight Capital is a private credit investment manager dedicated to meeting the needs of companies that operate across a broad range of industries by providing asset-based loans secured on a first or second lien basis against tangible and intangible assets. Pathlight provides creative financing solutions to allow management teams to access incremental liquidity for the purposes of funding working capital, debt refinancings, growth, acquisitions, dividends and turnaround strategies. For more information, please visit www.pathlightcapital.com.

About W.S. Badcock Corporation
W.S. Badcock Corporation, a subsidiary of Franchise Group Inc., is a Southeastern home furnishings company headquartered in Mulberry, FL. Founded in 1904, its branded Badcock Home Furniture & more retail chain has grown to more than 380 corporate and associate dealer stores across eight states. Badcock carries a complete line of furniture, appliances, bedding, electronics, home office furnishing, accessories and seasonal items while offering payment plans just right for its customers. For more information, visit www.badcock.com.

The information presented in this release is the opinion of Pathlight Capital LP and does not reflect the view of any other person or entity. The above is for information purposes and should not be construed as an investment recommendation.

This release may contain an endorsement from an individual who may be supporting or recommending the activities of the Firm. Such individual has not been compensated directly or indirectly by the Firm for the use of his statements. The statements represent endorsement by that individual only and may not represent the experience of all counterparties.

SOURCE Pathlight Capital