What was the interest rate on the Card My Yard loans with Deerpath as of December 31, 2024?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| 11,668,434 2028 11,668,434 2029 11,668,434 | 2025 | $ 11,668,434 |
|---|---|---|
| Thereafter | 39,893,136 |
4. Long-Term Debt and Revolving Credit Facility
In connection with the acquisitions ofsubsidiary companies in prior years, the Company entered into a financing arrangement with DeerpathFund Services, LLC (Deerpath) that matures onSeptember 3, 2026. Under the financing arrangement,the Company received an initial term loan with a principal amount of $28,000,000, to be used for acquisitions which occurred in 2021, as well as amounts available for future transactions as follows: (1) up to an aggregate of $15,000,0
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the company had a financing arrangement with Deerpath Fund Services, LLC. The loans under this arrangement bear an interest rate of a 3-month term SOFR plus 5.65%. As of December 31, 2024, this interest rate was 10.24%.
This financing arrangement, which matures on September 3, 2026, includes an initial term loan of $28,000,000 used for acquisitions in 2021. It also provides up to $15,000,000 in delayed draw term loans and contingent amounts of up to $25,000,000 for future financing, subject to negotiation. As of December 31, 2024, the total amount drawn on this facility was $48,100,000.
In addition to the term loans, the arrangement includes a revolving credit facility with available draws up to $2,000,000. As of December 31, 2024, Card My Yard had drawn $1,100,000 from this revolving credit facility. This information is relevant for prospective franchisees as it provides insight into the company's financial obligations and how they manage debt and credit facilities.