What was the amount of proceeds from the revolving facility for Big O Tires in 2024, in thousands of USD?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
5, 2024 to expand the borrowing capacity and to extend the expiration date to March 25, 2029. With this 5-year extension, the credit line is considered long-term debt. Outstanding borrowings as of March 31, 2025 and 2024 were $278,666 and $153,769, respectively.
The current capacity of the credit facility was expanded from $450,000 to $600,000 with the base rate based on 'prime rate' for the daily revolving needs and monthly loans at the Secured Overnight Financing Rate ("SOFR") plus a spread of 150, 175 or 200 basis points depending on prior quarter average excess capacity. A specific annual interest rate of 1.5% is applied to letters of credit dedicated amounts. There are commitment fees for unused balances at a fixed rate of 0.25%. The revolving credit facility is asset-based and collateralizes a portion of U.S. Inventories and Accounts Receivable. Available amounts that can be borrowed at any given time are based on percentages of certain outstanding U.S. accounts receivable, credit card receivables, and inventory. The revolving credit facility is subject to certain financial covenant requirements that are only triggered in the event of a default. The Company will maintain a Fixed Charge Coverage Ratio, calculated for each twelve-month period ending on the first day of any Covenant Testing Peri
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the company had a revolving credit facility in place. As of March 31, 2024, the outstanding borrowings under this facility amounted to $153,769,000. This credit facility allows Big O Tires to borrow funds as needed, up to a certain limit, to manage its short-term financial obligations.
The revolving credit facility was amended on March 25, 2024, to expand the borrowing capacity and extend the expiration date to March 25, 2029. The credit line is considered long-term debt with this 5-year extension. The capacity of the credit facility was expanded from $450,000,000 to $600,000,000.
The interest rates on the facility are variable, based on either the prime rate or the Secured Overnight Financing Rate (SOFR) plus a spread of 150 to 200 basis points, depending on excess capacity. Additionally, a 1.5% annual interest rate applies to letters of credit, and there are commitment fees of 0.25% for unused balances. The credit facility is asset-based, using U.S. inventories and accounts receivable as collateral, and is subject to certain financial covenant requirements triggered only in the event of a default, including maintaining a Fixed Charge Coverage Ratio of at least 1.00 to 1.00.