What is the legal final maturity date of the Series 2020-1 Class A-2 Notes for Carls?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
event, will fall under one of the three scenarios described above. The Series 2018-1 Variable Funding Notes require us to pay a commitment fee of 0.50% per annum for unused commitments and letter of credit fees of 3.00% per annum on our outstanding non-cash collateralized letters of credit. Interest and other fees on the Series 2018-1 Variable Funding Notes are due quarterly in arrears on the 20th day of each March, June, September and December. As of January 31, 2024, we had no outstanding loan borrowings, $22,647 of outstanding letters of credit and remaining availability of $47,353 under our Series 2018-1 Variable Funding Notes.
On December 21, 2020, we paid down the entire outstanding principal balance of our Series 2018-1 Class A-2-I Notes with the issuance of an aggregate principal amount of $400,000 of Series 2020-1 3.981% Fixed Rate Senior Secured Notes, Class A-2 (the "Series 2020-1 Class A-2 Notes"). Our Series 2018-1 4.959% Fixed Rate Senior Se
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the Series 2020-1 Class A-2 Notes have a legal final maturity date of December 2050. These notes, with an aggregate principal amount of $400,000, were issued on December 21, 2020, to pay down the outstanding principal balance of the Series 2018-1 Class A-2-I Notes.
The Series 2020-1 Class A-2 Notes were issued following an amendment to the Indenture, with an anticipated repayment date set for December 2027. The notes require scheduled quarterly principal payments of $1,000, which commenced on March 22, 2021. Interest payments for these notes are due quarterly in arrears on the 20th day of March, June, September, and December.
This information is relevant for prospective Carls franchisees as it provides insight into the financial structure and debt obligations of the company. Understanding the maturity dates and repayment schedules of these notes can help franchisees assess the financial stability and long-term financial planning of Carls.