What secured the Tempe Loan for Bw Premier Collection as of November 30, 2024?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
November 30, 2024
The interest rate on the Tempe Loan is a fixed annual rate of 3.50% and is computed and accrued on an ACT/360 basis. The Tempe Loan is secured by, among other things, the Deed of Trust and is guaranteed by the Company.
The Company had borrowed $15.3 million and $15.2 million as of November 30, 2024 and 2023, respectively. The current portion of $0.4 million and $0.4 million is included in accounts payable and accrued liabilities and $14.5 million and $14.8 million is included in non-current construction loans in the Consolidated Statements of Financial Position for the years ended November 30, 2024 and 2023, respectively.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the Tempe Loan is secured by the Deed of Trust. As of November 30, 2024, the loan was also guaranteed by the Company. The interest rate for the Tempe Loan is a fixed annual rate of 3.50%, which is computed and accrued on an ACT/360 basis.
DevCo Tempe entered into the Tempe Loan with UMB Bank in October 2020, allowing them to request advances up to $15.3 million. From November 1, 2020, to October 31, 2023, interest on the outstanding principal balance was due monthly. Starting November 1, 2023, and continuing through the maturity date of October 2, 2027, both principal and interest are due and payable in an amount determined by UMB to amortize the loan over a 25-year period. The remaining principal balance is due on the maturity date.
As of November 30, 2024, the company had borrowed $15.3 million. Of this, $0.4 million is classified as a current portion within accounts payable and accrued liabilities, while $14.5 million is categorized as a non-current construction loan in the Consolidated Statements of Financial Position. This indicates how Bw Premier Collection accounts for the loan in its financial statements.
It's important to note that the company is required to maintain certain financial and operational covenants and was in compliance with all covenants as of November 30, 2024. This compliance is crucial for maintaining the loan's good standing and avoiding potential default scenarios.