What interest rate does the unsecured note assumed by Carls bear, and when is the accrued interest payable?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
ain covenants or restrictions are not satisfied or complied with, the Senior Notes are subject to accelerated repayment events and events of default. Although management does not anticipate an event of default, if any such event occurred and was not cured within any applicable cure period, the unpaid amounts outstanding could become immediately due and payable.
In connection with the issuance of the Series 2021-1 Class A-2-I Notes in fiscal year 2022, we incurred debt issuance costs of $4,275, which w
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, in connection with the acquisition of Hardee's restaurants from a franchisee, Carls assumed a $2,100 unsecured note. After a $200 payment on November 20, 2020, the note bears interest at a variable rate equal to the prime rate plus 0.25%.
The remaining principal balance of the note was due in July 2023.
The accrued interest is payable quarterly, commencing in October 2020, and continues on the 27th day of January, April, July, and October until the note's maturity.