Winmark Corporation Announces Issuance of $30.0 Million of 3.18% Notes Due 2028

Rhea-AI Summary

Winmark Corporation (NASDAQ: WINA) has announced the issuance of $30.0 million in 3.18% Senior Secured Notes, maturing in 2028. The financing comes from affiliates of PGIM, Inc. and will be used for general corporate purposes, including potential share repurchases and dividends. As of June 26, 2021, Winmark operated 1,266 franchises and had over 2,000 available territories. The company is known for its sustainability-focused franchising business, which includes brands like Plato’s Closet® and Play It Again Sports®.

Positive

• Issuance of $30.0 million in Senior Secured Notes at a favorable rate of 3.18%.
• Proceeds aimed at enhancing shareholder value through share repurchases and dividends.

Negative

• None.

MINNEAPOLIS--(BUSINESS WIRE)-- Winmark Corporation (Nasdaq: WINA) announced today the issuance of $30.0 million of 3.18% Senior Secured Notes due 2028. The financing was provided by affiliates of PGIM, Inc. (formerly Prudential Investment Management) under its existing note agreement. Winmark intends to use the proceeds for general corporate purposes, which may include share repurchases and dividends.

Winmark - the Resale Company™, is a nationally recognized franchising business focused on sustainability and small business formation. We champion and guide entrepreneurs interested in operating one of our award-winning resale franchises: Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®. At June 26, 2021, there were 1,266 franchises in operation and over 2,000 available territories. An additional 36 franchises have been awarded but are not open.

This press release contains forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to future events or the future financial performance of the Company. Such forward-looking statements are only predictions or statements of intention subject to risks and uncertainties and actual events or results could differ materially from those anticipated. Because actual result may differ, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210910005301/en/

Brett D. Heffes

763/520-8500

Source: Winmark Corporation

FAQ

What are the details of Winmark Corporation's $30 million bond issuance?

Winmark Corporation has issued $30.0 million in 3.18% Senior Secured Notes due in 2028, financed by PGIM, Inc.

How does Winmark plan to use the proceeds from the Senior Secured Notes?

The proceeds will be used for general corporate purposes, which may include share repurchases and dividends.

What franchises does Winmark Corporation operate?

Winmark operates franchises such as Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore®, and Music Go Round®.

How many franchises does Winmark currently have?

As of June 26, 2021, Winmark had 1,266 franchises in operation.

Who provided the financing for Winmark's recent notes issuance?

The financing was provided by affiliates of PGIM, Inc.