What is the amount of Aunt Millies Bakeries' long-term debt due in 2025?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
| Routes held for sale | $ | 1,720,086 | $ | 1,518,530 |
|---|---|---|---|---|
| Deferred revenue | 1,399,000 | 1,438,000 | ||
| (Losses)/Gains recognized from sale of territories and delivery trucks | (170,920) | 101,929 | ||
| Interest income from distributor notes receivable (reflected in | ||||
| other income on the consolidated income statements) | 485,497 | 507,885 | ||
| Company repurchase obligation for territories previously sold | 440,000 | 219,000 | ||
| Interest rate on notes receivable – distributor routes | 8.75 | % to 9.75% | 8.75 | 5% to 9.75% |
NOTE 5 - DEBT ARRANGEMENTS
The Company had a Credit and Security Agreement ("Credit and Security Agreement") with a commercial lender. The Credit and Security Agreement provided a term loan of $8,000,000, advances in the form of a revolving loan up to $25,000,0000, and letters of credit up to $2,500,000. The term loan required monthly principal payments o
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
Based on the 2025 FDD, Aunt Millies Bakeries had a Credit and Security Agreement with a commercial lender that included a term loan of $8,000,000, a revolving loan up to $25,000,000, and letters of credit up to $2,500,000. An amendment to this agreement extended the maturities of these financial instruments to March 2025. The term loan required monthly principal payments of $95,238, with any remaining outstanding borrowings due upon maturity in March 2025.
Additionally, in May 2024, Aunt Millies Bakeries further amended their Credit and Security Agreement, extending the maturities of the term loan, revolving loan, and letters of credit to April 2027. The monthly principal payments of $95,238 on the term loan continued, with any remaining outstanding borrowings due upon maturity.
Therefore, the amount of long-term debt due in 2025 depends on the outstanding balances of the term loan, revolving loan, and letters of credit at their respective maturity dates in either March or April 2025, after accounting for the monthly principal payments on the term loan. The FDD does not specify the exact amount of long-term debt due in 2025.