Franchise Group, Inc. Amends Term Loan at the Vitamin Shoppe to Provide for Partial Early Prepayment

VIRGINIA BEACH, Va., June 01, 2020 (GLOBE NEWSWIRE) -- Franchise Group, Inc. (NASDAQ: FRG) (“Franchise Group” or the “Company”) today announced that it has amended and acquired a portion of its term loan at The Vitamin Shoppe, a business line consisting of multiple wholly owned subsidiaries of the Company. 

Since closing the acquisition of The Vitamin Shoppe on December 16, 2019, the Company has now repaid, or acquired for its own account (through a wholly owned subsidiary), more than $22 million of the original $70 million term loan.  Brian Kahn, CEO of Franchise Group, stated, “On May 22, we had the opportunity to acquire and effectively retire an additional $5.325 million of our highest interest rate tranche debt, bringing total repayments and acquisitions up to $22.075 million since closing the acquisition of The Vitamin Shoppe in December.  Our year to date performance and strong working relationship with our lenders have allowed us to accelerate the elimination of the term loan used in the acquisition financing.  Additionally, we have agreed with our lenders to make another previously unscheduled prepayment of $12.5 million, which we anticipate making in the third quarter of 2020.  By the end of 2020, in Franchise Group’s first full year of ownership of The Vitamin Shoppe, we estimate that we will have effectively eliminated over $42 million of the $70 million initial term loan.”

The Company’s decision to prepay and acquire debt of The Vitamin Shoppe does not impact Franchise Group’s ability to pay cash dividends to its shareholders.  The Company is committed to paying a regular dividend based on its operating performance and availability of cash.  All dividend payments are approved by the Board of Directors and will be announced when and if declared by the Board.

About Franchise Group, Inc.

Franchise Group, Inc. (NASDAQ: FRG) is an operator of franchised and franchisable businesses and uses its operating expertise to drive cost efficiencies and grow its brands.  Franchise Group’s business lines include Liberty Tax Service, Buddy’s Home Furnishings, American Freight and The Vitamin Shoppe.  On a combined basis, Franchise Group currently operates over 4,400 locations predominantly located in the U.S. and Canada that are either Company-run or operated pursuant to franchising agreements.