What is the definition of 'Series 2018-1 Senior Notes' in the context of Carls' financial obligations?
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 Senior Notes are defined in connection with a company-wide refinancing transaction completed on June 20, 2018. As part of this refinancing, Carls' indirect wholly-owned subsidiaries, Carl's Jr. Funding LLC and Hardee's Funding LLC, collectively referred to as the "Co-Issuers," issued notes.
Specifically, the Co-Issuers issued $1,000,000 in Series 2018-1 Fixed Rate Senior Secured Notes, Class A-2, known as "Series 2018-1 Class A-2 Notes," and $70,000 in Series 2018-1 Class A-1 Variable Funding Senior Secured Notes, referred to as "Series 2018-1 Variable Funding Notes." Together, the Series 2018-1 Class A-2 Notes and the Series 2018-1 Variable Funding Notes are known as the "Series 2018-1 Senior Notes."
The Series 2018-1 Class A-2 Notes were further divided into three tranches with different interest rates and anticipated repayment dates: $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; $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; and $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. These notes have a legal final maturity date of June 2048 and require scheduled quarterly principal payments of $2,500, with interest payments due quarterly in arrears on the 20th day of March, June, September, and December.
The indenture governing these notes allows the Co-Issuers to issue additional series of notes in the future, provided certain conditions are met. A portion of the proceeds from new issuances, such as the Series 2024-1 Class A-2 Term Notes, were used to repay earlier series like the Series 2018-1 Class A-2-II Term Notes, demonstrating ongoing refinancing activities.