What is the definition of 'Series 2018-1 Refinancing' for Carls?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Unamortized deferred financing costs on Senior Notes | (12,178) | (15,595) | | Long-term debt | 1,119,822 | 1,130,105 | | Less current portion | (11,800) | (13,700) | | Long-term debt, less current portion | $ 1,108,022 | $ 1,116,405 | | | | |
As of January 31, 2024, the aggregate maturities of our long-term debt, based on the anticipated repayment date and excluding the effects of amortization of the deferred financing costs on the Series 2018-1 Senior Notes, Series 2020-1 Senior Notes, Series 2021-1 Senior Notes and Other Notes are as follows:
| 2025 | $ 11,800 |
|---|---|
| 2026 | 336,425 |
| 2027 | 8,300 |
| 2028 | 380,300 |
| 2029 | 395,175 |
| Thereafter | — |
| Total long-term debt | $ 1,132,000 |
Series 2018-1 Senior Notes, Series 2020-1 Senior Notes and Series 2021-1 Senior Notes
On June 20, 2018, we completed a company-wide refinancing transaction (the "Series 2018-1 Refinancing"). In connection with the Series 2018-1 Refinancing, Carl's Jr. Funding LLC and Hardee's Funding LLC (collectively, the "Co-Issuers"), our indirect wholly-owned subsidiaries, issued an aggregate principal amount of $1,000,000 Series 2018-1 Fixed Rate Senior Secured Notes, Class A-2, ("Series 2018-1 Class A-2 Notes") and $70,000 Series 2018-1 Class A-1 Variable Funding Senior Secured Notes ("Series 2018-1 Variable Funding Notes", and together with the Series 2018-1 Class A-2 Notes, the "Series 2018-1 Senior Notes"). The indenture governing the Series 2018-1 Senior Notes (the "Indenture") allows the Co-Issuers to issue additional series of notes in the
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the "Series 2018-1 Refinancing" refers to a company-wide refinancing transaction completed on June 20, 2018. In connection with this refinancing, Carls's indirect wholly-owned subsidiaries, Carl's Jr. Funding LLC and Hardee's Funding LLC (collectively known as the "Co-Issuers"), issued a total principal amount of $1,000,000 in Series 2018-1 Fixed Rate Senior Secured Notes, Class A-2, also called the "Series 2018-1 Class A-2 Notes," along with $70,000 in Series 2018-1 Class A-1 Variable Funding Senior Secured Notes, referred to as "Series 2018-1 Variable Funding Notes". Together, these notes are known as the "Series 2018-1 Senior Notes."
The Series 2018-1 Class A-2 Notes were issued in three tranches with varying interest rates and anticipated repayment dates. The first tranche consisted of $400,000 of Series 2018-1 4.250% Fixed Rate Senior Secured Notes, Class A-2-I, with an anticipated repayment date of June 2022. The second tranche included $350,000 of Series 2018-1 4.959% Fixed Rate Senior Secured Notes, Class A-2-II, with an anticipated repayment date of June 2025. The third tranche comprised $250,000 of Series 2018-1 5.710% Fixed Rate Senior Secured Notes, Class A-2-III, with an anticipated repayment date of June 2028. All Series 2018-1 Class A-2 Notes share a legal final maturity date of June 2048.
The Series 2018-1 Class A-2 Notes require scheduled quarterly principal payments of $2,500, with the first payment due on December 20, 2018. Interest payments for these notes are due quarterly in arrears on the 20th day of March, June, September, and December. This refinancing represents a significant financial event for Carls, and understanding the terms of these notes is crucial for assessing the company's financial obligations and stability.