When was the Securitization Transaction completed that involved Carls Jr. Funding LLC?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
uritization Entities are special purpose, bankruptcy remote entities that hold substantially all of the restaurant businesses, franchising assets, real estate and other productive assets of CKE Restaurants and its subsidiaries. CKE Restaurants, together with certain other non-securitization entities, acts as the manager ("Manager") by managing and servicing the assets, performing certain franchising, marketing, real estate, intellectual property and operating and reporting services on behalf of the CKE Securitization Entities. References to "we", "us", "our" and the "Company" may relate to any or all of the CKE Securitization Entities, as may be applicable, but do not relate to CKE or CKE Restaurants.
The CKE Securitization Entities were formed in connection with a contemplated financing (the "Securitization Transaction"), which was completed on April 1, 2013. In conjunction with the S
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the Securitization Transaction was completed on April 1, 2013. In connection with this transaction, Carl's Jr. Funding LLC and Hardee's Funding LLC, acting as Co-Issuers, issued $1,050,000 Series 2013-1 4.474% Class A-2 Senior Secured Notes. These notes had an anticipated repayment date of March 2020 and a legal final maturity date of March 2043. Additionally, they issued $100,000 Series 2013-1 Variable Funding Class A-1 Senior Secured Notes due September 2018.
These initial Senior Notes were later refinanced in June 2018. Subsequently, in December 2020, the Series 2018-1 Class A-2-I Notes underwent refinancing as well. The Co-Issuers then issued $180,000 Series 2021-1 Class A-2 Notes in June 2021. Further details regarding these transactions can be found in Note 8 of the financial statements.
For a prospective Carls franchisee, this information provides insight into the financial structure and debt obligations of the parent company. Understanding the history of securitization and refinancing can help franchisees assess the financial stability and long-term strategy of Carls. It's important to review Note 8 in the FDD for a more comprehensive understanding of these financial transactions and their potential impact on the franchise system.