What is the maturity date for the Last-Out Term Loans for Checkersrallys?
Checkersrallys 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 Checkersrallys's 2025 Franchise Disclosure Document, the Last-Out Term Loans mature on June 16, 2028. These loans bear interest at either an alternative base rate plus 8% or the Adjusted Term SOFR plus 9% plus a credit adjustment spread.
Checkersrallys has the option to pay interest in kind at a rate equal to 6% rather than in cash. The company is also required to make recurring quarterly principal payments on the Last-Out Term Loans, equivalent to 0.25% of the original principal amount, with the remaining principal due upon maturity.
Additionally, Checkersrallys is required to pay a contractual premium upon each principal repayment. This premium varies depending on the timing of the repayment: a make-whole provision calculated as a discounted amount of remaining interest payments prior to the first anniversary, 8% on or after the first anniversary but before the second, 7% on or after the second anniversary but before the third, 5% on or after the third anniversary, and 3% on or after the fourth anniversary.