What is the interest payment schedule for the Series 2018-1 Class A-2 Notes for Carls?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
denture governing the Series 2018-1 Senior Notes (the "Indenture") allows the Co-Issuers to issue additional series of notes in the future subject to certain conditions.
The Series 2018-1 Class A-2 Notes were issued in three tranches: (i) $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; (ii) $350,
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the interest payments for the Series 2018-1 Class A-2 Notes are due quarterly. These payments are made in arrears, meaning they cover the interest accrued in the previous quarter. The specific dates for these payments are the 20th day of March, June, September, and December each year.
Carls issued the Series 2018-1 Class A-2 Notes on June 20, 2018, as part of a company-wide refinancing transaction. The notes were issued in three tranches with different interest rates and anticipated repayment dates. The aggregate principal amount for these notes was $1,000,000. The legal final maturity date for the Series 2018-1 Class A-2 Notes is June 2048.
In addition to interest payments, the Series 2018-1 Class A-2 Notes also require scheduled quarterly principal payments of $2,500, with the first payment due on December 20, 2018. This means that Carls is obligated to make both interest and principal payments on a quarterly basis according to the specified schedule. Prospective franchisees should be aware of these financial obligations, as they reflect the financial structure and debt management of the company.