What was the effective interest rate on Brightstar Care's Parent's term loan as of January 1, 2023?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
isting term loan to add a Delayed Draw Term Loan in the amount of $25,000,000 that is available to be drawn on until August 24, 2024.
There were no outstanding borrowings under the Parent's revolving commitment as of December 31, 2023 and there were $5,502,220 outstanding borrowings under the Parent's revolving commitment as of January 1, 2023. The outstanding balance under the Parent's term loan obligation is $96,840,916 and $79,342,500 as of December 31, 2023 and January 1, 2023, respectively.
As of December 31, 2023 and January 1, 2023, the e
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 117)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the effective interest rate on the Parent's term loan as of January 1, 2023, was 10.96%. The term loan's outstanding balance was $79,342,500 on this date. The remaining unpaid balance is due on February 15, 2026.
This information is relevant to prospective Brightstar Care franchisees because it provides insight into the financial obligations and debt management of Brightstar Group Holdings, Inc., the parent company. Understanding the parent company's debt and interest rates can help franchisees assess the financial stability of the overall Brightstar Care organization.
It's important to note that the interest rate and loan balance are specific to the Parent's term loan and may not directly impact the franchisee's individual financial obligations. However, significant debt or high-interest rates at the parent company level could indirectly affect the resources available for supporting the franchise system. Therefore, a prospective franchisee should consider these figures as part of their overall due diligence.