What is the maturity date for the Last-Out Term Loans for Checkers, and what are the interest rate options?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Last-Out Term Loans, maturing June 16, 2028, bearing interest at an alternative base rate plus 8% or the Adjusted Term SOFR plus 9% plus a credit adjustment spread. Company has option to pay interest in kind at a rate equal to 6% rather than in cash.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the Last-Out Term Loans mature on June 16, 2028. These loans bear interest at a floating rate, with Checkers having the option to choose between two rates.
The first option is an alternative base rate plus 8.00% per annum. The second option is the Adjusted Term Secured Overnight Financing Rate plus 9.00% per annum, along with a credit adjustment spread.
Checkers also has the option to pay interest on these loans in kind, meaning they can pay the interest that has accrued at a rate equal to 6.00% per annum in a form other than cash. This could provide Checkers with some flexibility in managing its cash flow.