When does the financing arrangement between 1 800 Packouts and Deerpath Fund Services, LLC mature?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
4. Long-Term Debt and Revolving Credit Facility
In connection with the acquisitions of subsidiary companies in prior years, the Company entered into a financing arrangement with Deerpath Fund Services, LLC (Deerpath) that matures on September 3, 2026. Under the financing arrangement, the Company received an initial term loan with a principal amount of $28,000,000, to be used for acquisitions which occurred in 2021, as well as amounts available for future transactions as follows: (1) up to an aggregate of $15,000,000 available as delayed draw term loans, and (2)
contingent amounts of up to $25,000,000 available for future financing to be negotiated. The loans bear an interest rate of a 3-month term SOFR plus 5.65% (10.24% as of December 31, 2024). As of December 31, 2024 and 2023, the total amount that has been drawn on the facility was $48,100,000. The arrangement also provides for a revolving credit facility with available draws up to $2,000,000, of which the Company had drawn $1,100,000 as of December 31, 2024.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the financing arrangement with Deerpath Fund Services, LLC matures on September 3, 2026. This financing arrangement was established in connection with the acquisitions of subsidiary companies in prior years.
Under this arrangement, 1 800 Packouts received an initial term loan of $28,000,000, which was intended for acquisitions that occurred in 2021. Additionally, the arrangement included provisions for future transactions, such as up to $15,000,000 available as delayed draw term loans and contingent amounts of up to $25,000,000 available for future financing to be negotiated.
The loans bear an interest rate of a 3-month term SOFR plus 5.65%, which was 10.24% as of December 31, 2024. As of December 31, 2024 and 2023, the total amount drawn on the facility was $48,100,000. The arrangement also includes a revolving credit facility with available draws up to $2,000,000, of which $1,100,000 had been drawn as of December 31, 2024.