What was the estimated fair value of the Series 2018-1 Class A-2-II Notes for Carls in 2024?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
4 | 108 | | Total other long-term liabilities | $ | 250,801 | $ 262,510 |
NOTE 12 — MEMBERS' DEFICIT
During fiscal 2024 and 2023, the CKE Securitization Entities received capital contributions of $35,679 and $45,394, respectively, consisting principally of property and equipment and assets associated with the CKE Restaurants Acquisition (see Note 5). During fiscal 2024 and 2023, the CKE Securitization Entities paid total cash distributions of $133,746 and $139,428, respectively, to members.
NOTE 13 — FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table presents information on our financial instruments as of January 31, 2
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the estimated fair value of the Series 2018-1 Class A-2-II Notes was $315,044. The carrying amount for these notes was $329,928 in 2024. In 2023, the estimated fair value was $319,515, with a carrying amount of $332,363.
Carls's financial liabilities also included other series of notes. The Series 2018-1 Class A-2-III Notes had an estimated fair value of $222,070 in 2024, while the Series 2020-1 Class A-2 Notes had an estimated fair value of $344,350, and the Series 2021-1 Class A-2 Notes had an estimated fair value of $146,543. These figures provide a snapshot of Carls's debt structure and the estimated market valuation of its various debt instruments.
The Series 2018-1 Class A-2 Notes were issued in three tranches as part of a company-wide refinancing transaction completed on June 20, 2018. Specifically, the Series 2018-1 Class A-2-II Notes, which are the focus of this question, were issued with a principal amount of $350,000 and a fixed interest rate of 4.959%, with an anticipated repayment date of June 2025. These notes, along with other series, are governed by an indenture that allows for the issuance of additional notes in the future, subject to certain conditions. The notes 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.