What is the maturity date of the 7.000% senior notes due 2028 issued by Aplus?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
nder the Partnership's Credit Facility (as defined below), to the extent of the value of the collateral securing such obligations, and structurally subordinated to all indebtedness and obligations, including trade payables, of the Partnership's subsidiaries that do not guarantee the Senior Notes.
On September 20, 2023, we and Sunoco Finance Corp. completed a private offering of $500 million in aggregate principal amou
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the 7.000% senior notes due in 2028 will mature on September 15, 2028. These notes bear interest at a rate of 7.000%, with interest payments occurring semi-annually on March 15 and September 15 of each year.
On September 20, 2023, Aplus and Sunoco Finance Corp. completed a private offering of $500 million in aggregate principal amount of these senior notes. The proceeds from this offering were used by Aplus to repay a portion of their outstanding borrowings under their Credit Facility.
For a prospective franchisee, understanding the debt structure of the franchisor is crucial. The maturity date of these notes indicates when Aplus is obligated to repay the principal amount, which can impact their financial flexibility and ability to support franchisees. The interest rate and payment schedule provide insight into the ongoing debt servicing costs of Aplus. The franchisee should also note that Energy Transfer guarantees collection to the Issuers with respect to the payment of the principal amount of the 5.875% Senior Notes due 2028.