What was the amount of First Lien and New Money Loans for Checkersrallys as of January 1, 2024?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
ns for its pro rata share of 5% of the equity of Topco. After the Out-of-Court Restructuring, lenders which own a significant percentage of Topco's equity are included in the below table as related parties. Refer to Note 13. Debt, Financing Obligations and Credit Facilities.
As of
A summary of related-party transactions follows:
| ab or | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Balance sheet amounts | ary 1, 2024 ccessor) | January 2, 2023 (Predecessor) | ||||||||
| Accounts receivable from NPF and CDSI | $ 3,325 | $ | 2,261 | |||||||
| Accrued liabilities | 848 | 716 | ||||||||
| Second Lien Credit Agreement | *: | 31,066 | ||||||||
| First Lien and New Money Loans | 66,786 | • | ||||||||
| Expense amounts | th Janua | 17, 2023 rough ry 1, 2024 ccessor) | th June | ry 3, 2023 rough 16, 2023 decessor) | 2 | nuary 2, 2023 decessor) | January 3, 2022 (Predecessor) | |||
| --------------------------------------------- | ------------- | --------------------------------------------- | ------------ | ---------------------------------------------- | --------------------- | ------------------------------- | ---------------------------------- | ------- | -- | -- |
| Management fees and travel-related expenses | $ | 216 | $ | 372 | $ | 450 | $ | 452 | ||
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, as of January 1, 2024, the First Lien and New Money Loans amounted to $66,786. The New Money Loans, separately identified, were $10,081 as of January 1, 2024.
The New Money Loans, also referred to as "First-Out Delayed Draw Term Loans," were established under a Credit Agreement dated June 16, 2023. First Lien Lenders had the option to commit up to a pro rata share of $25 million in these loans. These loans accrue interest at a floating rate, which Checkersrallys can elect to be either an alternative base rate plus 6.00% per annum or the Adjusted Term Secured Overnight Financing Rate plus 7.00% per annum, along with a credit adjustment spread.
Checkersrallys has the option to pay interest on the New Money Loans in kind at a rate of 4.00% per annum instead of in cash. These loans are set to mature on June 16, 2027, and require recurring quarterly principal payments equivalent to 0.25% of the original principal amount, which may increase with additional borrowings. The remaining principal is due upon maturity. Additionally, each principal repayment is subject to a contractual premium, which varies depending on the timing of the repayment: a make-whole provision for repayments before the first anniversary, 7% for repayments on or after the first but before the second anniversary, 5% for repayments on or after the second but before the third anniversary, and 3% for repayments on or after the third anniversary.