When did PSB Group enter into the Credit Agreement to fund acquisitions for 360 Painting?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Term loan | $ 11,864,500 $ | 12,293,250 |
| Delayed draw term loans | 8,140,875 | 8,475,375 |
| Revolving loans | 1,200,000 | - |
| Total debt | 21,205,375 | 20,768,625 |
| Less: Current portion | (609,375) | (599,500) |
| Less: Unamortized deferred loan costs | (159,339) | (250,400) |
| Long-term debt, net | $ 20,436,661 $ | 19,918,725 |
In September 2021, PSB Group entered into a $6,500,000 term loan, a $10,000,000 delayed draw term loan and a $2,250,000 revolving loan of credit agreement with a financial institution (the "Credit Agreement") in order to fund acquisitions completed in 2021 and 2022.
8. Long-term Debt: (Continued)
In January 2022, the Company borrowed $3,950,000 under the delayed draw term facility for the acquisition of Rooterman. As part of the funding of this delayed draw term loan, the Company incurred and deferred $59,250 of related costs.
In October 2022, PSB Group entered into the Second Amendment to the Credit Agreement in order to replace the London Interbank Offering Rate ("LIBOR") with the SOFR rate, a rate equal to the secured overnight financing rate as administered by the Federal Reserve Bank of New York.
In May 2023, PSB Group entered into the Third Amendment to the Credit Agreement (the "Amended Credit Agreement") in order to fund the acquisition of Window Gang.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, PSB Group initially entered into a Credit Agreement in September 2021. This agreement included a $6,500,000 term loan, a $10,000,000 delayed draw term loan, and a $2,250,000 revolving loan. The purpose of this Credit Agreement was to finance acquisitions completed in 2021 and 2022. This initial agreement was later amended to accommodate further financial activities.
In October 2022, PSB Group entered into the Second Amendment to the Credit Agreement to replace the London Interbank Offering Rate (LIBOR) with the SOFR rate. Subsequently, in May 2023, PSB Group entered into the Third Amendment to the Credit Agreement to fund the acquisition of Window Gang, borrowing $6,100,000 under this amendment. A Fourth Amendment followed in December 2023, allowing for the transfer of Renew Crew's assets to Window Gang.
On April 17, 2025, PSB Group entered into a new credit agreement to repay all borrowings outstanding under the Amended Credit Agreement, finance future acquisitions, allow PSB to make a one-time tax distribution, and provide working capital. This 2025 Credit Agreement includes a $22,500,000 term loan and a $3,000,000 revolving loan commitment. These financial activities reflect PSB Group's ongoing efforts to strategically manage its assets and expand its franchise network, which includes 360 Painting.