Pathlight Capital Agents $148,200,000 Senior Secured Term Loan to Support B. Riley's Purchase of Badcock Receivables Portfolio

BOSTON, Oct. 18, 2022 /PRNewswire/ -- Pathlight Capital LP ("Pathlight") announced it is serving as the Administrative Agent on a $148.2 million senior secured term loan credit facility to an SPV majority owned by a subsidiary of B. Riley Financial, Inc. to support the acquisition of a portfolio of performing receivables from W.S. Badcock Corporation ("Badcock"), one of the largest home-furnishing retailers in the Southeastern United States and a subsidiary of Franchise Group, Inc (NASDAQ: FRG).

The facility, which matures in September 2027, allowed Badcock to monetize a pool of on-balance sheet receivables and provide it with additional liquidity for general corporate purposes.

"Pathlight has proven to be a trustworthy counterparty whose experience in complex transactions resulted in an efficient and creative transaction for Badcock," said Brian Kahn, President and CEO of Franchise Group. "We look forward to a long-term partnership with the Pathlight team."

Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, said: "We were pleased to work with Pathlight in support of this transaction. We made this purchase based upon the success of our prior acquisition of Badcock receivables and as a continuation of our long-standing support of FRG."

Christopher Arnold, Managing Director of Pathlight Capital commented, "Pathlight was excited to tailor a credit facility to support B. Riley's consumer receivables portfolio acquisition. We appreciate the opportunity to partner with B. Riley, Badcock, and FRG, all of whom have significant experience and a demonstrated track record in managing consumer receivable assets."

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 aims to provide 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.

W.S. Badcock Corporation, a subsidiary of Franchise Group Inc. (NASDAQ: FRG), 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. 

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SOURCE Pathlight Capital