What was the total long-term debt for 360 Painting as of December 31, 2023?

According to 360 Painting's 2025 Franchise Disclosure Document, the company's long-term debt, net of current portions and unamortized deferred loan costs, was $19,918,725 as of December 31, 2023. This figure represents the outstanding balance of debt obligations that 360 Painting is scheduled to repay beyond the coming year. This debt is a significant liability on 360 Painting's balance sheet. Prospective franchisees should consider the implications of this debt on the company's financial stability and its ability to support its franchisees.

The components of the total debt include term loans of $12,293,250 and delayed draw term loans of $8,475,375, bringing the total debt to $20,768,625. After subtracting the current portion of $599,500 and unamortized deferred loan costs of $250,400, the long-term debt, net, is $19,918,725. The presence of deferred loan costs suggests that 360 Painting incurred expenses in obtaining this financing, which are being amortized over the life of the loan.

It is important to note that substantially all of the assets of the company collateralize the Amended Credit Agreement. The interest rates on these loans ranged from 12.71% to 12.89% as of December 31, 2023. The Amended Credit Agreement also requires 360 Painting to maintain minimum levels of cash flow coverage and leverage to EBITDA ratios, and it limits capital expenditures. As of December 31, 2023, 360 Painting was in compliance with these covenants, and the credit agreement is set to expire on September 17, 2026. This information is crucial for potential franchisees to understand the financial obligations and constraints under which 360 Painting operates.