As of what date does the Senior Secured Term Loan mature for Beef O Bradys?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
51%, as agreed to by Newk's, an entity controlled by CapitalSpring. The Company's portion of the Revolver is the ability to draw up to $4,500,000. The proceeds from the Term Loan were used to repay the existing line of credit, term loan, subordinated debt, and accrued interest with the financial institution at the closing of the Refinancing Transaction.
Senior Secured Term Loan - On November 16, 2023, the Company's allocated portion of the $55,000,000 senior secured term loan, maturing on November 16,2028, was $27,913,083. Borrowings under the agreement bear interest at the Adjusted Term SOFR Reference Rate (Secured Overnight Financing Rate) plus applicable margin, as defined by the agreement, ranging from 3.00% to 3.75% based on the Total Lease Adjusted Leverage Ratio. The term loan requires the Borrowers, jointly and severally, to make quarterly principal payments of $1,031,250 beginning March 31, 2024 through September 30, 2028, with a balloon payment and any remaining principal amount due on the term loan maturity date. The Company's allocated portion of quarterly prin
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the company entered into a Refinancing Transaction on November 16, 2023, which included a $55,000,000 Senior Secured Term Loan. Beef O Bradys's allocated portion of this loan was $27,913,083.
The Senior Secured Term Loan matures on November 16, 2028. The loan agreement requires quarterly principal payments of $1,031,250, with Beef O Bradys's share being $523,370, starting March 31, 2024, and continuing through September 30, 2028. A balloon payment covering any remaining principal is due on the maturity date.
This information is relevant for prospective franchisees as it provides insight into the financial obligations and debt structure of Beef O Bradys. Understanding the company's debt maturity dates and repayment schedules can help franchisees assess the financial stability of the franchisor. Additionally, the interest rate on the loan, which was 9.24% as of December 31, 2023, and the effective interest rate of 10.19% for the year ended December 31, 2024, gives an idea of the borrowing costs faced by the company.