What is the anticipated repayment date for Carls' Series 2020-1 Class A-2 Notes?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
event, will fall under one of the three scenarios described above. The Series 2018-1 Variable Funding Notes require us to pay a commitment fee of 0.50% per annum for unused commitments and letter of credit fees of 3.00% per annum on our outstanding non-cash collateralized letters of credit. Interest and other fees on the Series 2018-1 Variable Funding Notes are due quarterly in arrears on the 20th day of each March, June, September and December. As of January 31, 2024, we had no outstanding loan borrowings, $22,647 of outstanding letters of credit and remaining availability of $47,353 under our Series 2018-1 Variable Funding Notes.
On December 21, 2020, we paid down the entire outstanding principal balance of our Series 2018-1 Class A-2-I Notes with the issuance of an aggregate principal amount of $400,000 of Series 2020-1 3.981% Fixed Rate Senior Secured Notes, Class A-2 (the "Series 2020-1 Class A-2 Notes"). Our Series 2018-1 4.959% Fixed Rate Senior Se
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the Series 2020-1 Class A-2 Notes have an anticipated repayment date of December 2027. These notes, issued on December 21, 2020, were used to pay down the entire outstanding principal balance of the Series 2018-1 Class A-2-I Notes. The aggregate principal amount of the Series 2020-1 Class A-2 Notes is $400,000, bearing a fixed interest rate of 3.981%.
Carls's Series 2020-1 Class A-2 Notes were issued pursuant to an amendment to the Indenture and have a legal final maturity date of December 2050. The notes require scheduled quarterly principal payments of $1,000, with the first payment due on March 22, 2021. Interest payments are also due quarterly in arrears on the 20th day of March, June, September, and December.
It is important to note that while the anticipated repayment date is December 2027, Carls has the option to repay all or a portion of the remaining principal amount of these notes at par, starting thirty-six months prior to the anticipated repayment date. This provides Carls with some flexibility in managing its debt obligations. Prospective franchisees should be aware of these debt obligations as they could impact the financial health of the company.