Are the Series 2024-1 Class A-1-VFN Notes subject to any commitment fees for Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
um. Interest and principal payments on the Series 2024-1 Class A-2 Notes are due on a quarterly basis. The requirement to make quarterly principal payments on the Series 2024-1 Class A-2 Notes is subject to certain financial conditions set forth in the Indenture. The legal final maturity date of the Series 2024-1 Class A-2 Notes is April 30, 2054. Unless the outstanding principal is prepaid, the Indenture provides for an anticipated repayment date in April 2029. If the Issuer has not repaid or refinanced the Series 2024-1 Class A-2 Notes prior to the anticipated repayment date, additional interest will accrue pursuant to the Indenture.
Borrowings under the Series 2024-1 Class A-1-VFN Notes bear interest at a variable rate equal to SOFR plus 3.3%. The Series 2024-1 Class A-1-VFN Notes may also be used to issue letters of credit. The Series 2024-1 Class A-1-VFN Notes will also be subject to (i) certain commitment fees in respect to the unused portion of the commitments of the investors th
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the Series 2024-1 Class A-1-VFN Notes are indeed subject to certain commitment fees. Specifically, these fees relate to the unused portion of the commitments from investors. This means that Basecamp Fitness incurs costs for the amount of funding available but not yet drawn upon from these notes.
In addition to commitment fees, the Series 2024-1 Class A-1-VFN Notes are also subject to certain fees related to letters of credit issued under the same agreement. As of December 31, 2024, the outstanding letters of credit totaled $18,021, which includes $17,950 of interest reserve letters of credit transferred from the Series 2021-1 Class A-1 Senior Secured Liquidity Reserve Notes. The company also had $15,000 of additional borrowings outstanding against these notes as of the same date.
Prospective Basecamp Fitness franchisees should be aware that these financing arrangements and associated fees are part of the overall financial structure of the company. While the FDD indicates that the company does not anticipate any material loss from these letters of credit, understanding the terms and conditions of these notes, including the commitment fees and interest rates (SOFR plus 3.3%), is crucial for assessing the financial health and stability of Basecamp Fitness. Franchisees may want to inquire about how these financing costs could indirectly affect the franchise system.