What was the outstanding amount on the revolving loan at September 30, 2023 for Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
000 | | (Losses)/Gains recognized from sale of territories and delivery trucks | | (89,851) | | (170,920) | | Interest income from distributor notes receivable (reflected in | | | | | | other income on the consolidated income statements) | | 913,501 | | 485,497 | | Company repurchase obligation for territories previously sold | | 2,268,021 | | 440,000 | | Interest rate on notes receivable – distributor routes | 8.75 | 5% to 9.75% | 8.7 | 5% to 9.75% |
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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 of $95,238 beginning June 1, 2021. The term loan, revolving loan, and letters of credit was set to mature November 30, 2023. All unpaid principal and interest was due upon maturity.
In May 2024, the Company amended their Credit and Security Agreement ("Amended Credit and Security Agreement") whereby the term loan, revolving loan, and letters of credit maturities were extended to April 2027. The term loan monthly principal payments of $95,238 continue and any remaining outstanding borrowings are due upon maturity.
The term loan, revolving loan, and letters of credit bear interest at a variable rate for varying amounts based on LIBOR or a rate not to exceed the prime rate, both rates adjusted by a factor tied to a quarterly financial performance ratio. Availability under the revolving loan is subject to a borrowing base calculation and other restrictions common in such agreements. Borrowings under the letters of credit reduce availability of the revolving loan. There was no balance outstanding on the revolving loan at September 30, 2024 and 2023, respectively. There were no outstanding borrowings on the letters of credit at September 30, 2024 and 2023.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the company had a Credit and Security Agreement with a commercial lender that included a revolving loan. At September 30, 2023, the outstanding amount on this revolving loan was $0. In comparison, the outstanding amount on the revolving loan at September 30, 2022, was $5,704,555.
Additionally, Aunt Millies Bakeries has a subordinated revolving credit facility from stockholders. The borrowings on this facility were $2,740,852 as of September 30, 2023, and $2,452,450 as of September 30, 2022.
It is important to note that the Credit and Security Agreement was amended in May 2024, extending the maturities of the term loan, revolving loan, and letters of credit to April 2027. The subordinated revolving credit facility does not have a maturity date.