Pathlight Capital 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 to support the acquisition of a portfolio of performing receivables from W.S. Badcock Corporation, a home-furnishing retailer in the Southeastern United States and a subsidiary of Franchise Group.
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,” Brian Kahn, president and CEO of Franchise Group. “We look forward to a long-term partnership with the Pathlight team.”
“We were pleased to work with Pathlight in support of this transaction,” Bryant Riley, chairman and co-CEO of B. Riley Financial, said. “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.”
“Pathlight was excited to tailor a credit facility to support B. Riley’s consumer receivables portfolio acquisition,” Christopher Arnold, managing director of Pathlight Capital, said. “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.”
