What was the total long-term debt for 360 Painting as of December 31, 2024?

According to 360 Painting's 2025 Franchise Disclosure Document, the company's total long-term debt, net of current portions and unamortized deferred loan costs, was $20,436,661 as of December 31, 2024. This figure represents the balance of term loans, delayed draw term loans, and revolving loans after subtracting the current portion and unamortized deferred loan costs. In comparison, the long-term debt, net, as of December 31, 2023, was $19,918,725.

The components of the total debt include term loans amounting to $11,864,500, delayed draw term loans of $8,140,875, and revolving loans of $1,200,000 as of December 31, 2024. The total debt before deductions was $21,205,375. The current portion of the debt, representing amounts due within one year, was ($609,375), and the unamortized deferred loan costs were ($159,339). These deductions result in the reported net long-term debt figure.

Prospective franchisees should note that this debt is collateralized by substantially all of the assets of Premium Service Brands, LLC, 360 Painting's affiliate. The Amended Credit Agreement requires the company to maintain minimum levels of cash flow coverage and leverage to EBITDA ratios, and it also limits capital expenditures. The Credit Agreement is set to expire on September 17, 2026. Understanding the debt structure and associated covenants is crucial for assessing the financial stability and obligations of 360 Painting's parent company, as this could indirectly impact the support and resources available to franchisees.