What was the amount issued in January 2023 by Budget with a maturity date of April 2028?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| Issuance Date | Maturity Date | Weighted Average Interest Rate | Amount Issued |
|---|---|---|---|
| January 2023 | April 2028 | 5.36 % | 350 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, in January 2023, Budget issued notes with an April 2028 maturity date. The amount issued was $350. The weighted average interest rate for these notes was 5.36%.
This information is relevant to potential franchisees as it provides insight into Budget's debt financing activities. Understanding the company's debt structure can help franchisees assess the financial stability and overall risk associated with investing in a Budget franchise. The terms of these notes, such as the interest rate and maturity date, can indicate the company's borrowing costs and long-term financial obligations.
Prospective franchisees should consider these details as part of their due diligence process. While this specific issuance may not directly impact day-to-day franchise operations, it contributes to the overall financial health of Budget, which can indirectly affect franchisees. Reviewing the company's financial statements and understanding its debt management strategies is a crucial step in evaluating the franchise opportunity.