What is the legal final maturity date for the Series 2018-1 Class A-2 Notes for Carls?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
inancing"). In connection with the Series 2018-1 Refinancing, 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 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 Series 2018-1 Class A-2 Notes have a legal final maturity date of June 2048. These notes were part of a company-wide refinancing transaction completed on June 20, 2018. As part of this refinancing, Carl's Jr. Funding LLC and Hardee's Funding LLC, both indirect wholly-owned subsidiaries, issued $1,000,000 in Series 2018-1 Fixed Rate Senior Secured Notes, Class A-2.
It's important to note that these Series 2018-1 Class A-2 Notes were issued in three tranches with varying anticipated repayment dates. The first tranche, totaling $400,000, had an anticipated repayment date of June 2022. The second tranche, amounting to $350,000, had an anticipated repayment date of June 2025, and the third tranche, totaling $250,000, had an anticipated repayment date of June 2028.
In addition to the maturity date, 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 also due quarterly in arrears on the 20th day of March, June, September, and December. Understanding the structure and repayment terms of these notes can provide insight into the financial obligations of Carls's subsidiaries.