What was the total debt for Checkersrallys as of December 30, 2024?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
ugh January 1, 2024 (Successor) and from January 3, 2023, through June 16, 2023 (Predecessor), respectively.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
NOTE 10 - DEBT
Debt consisted of the following as of December 30, 2024 (Successor) and January 1, 2024 (Successor):
| Successor | ||||
|---|---|---|---|---|
| December 30, 2024 | January 1, 2024 | |||
| Obligations under premium financing arrangements, with short | $ | 976 | $ | 1,028 |
| term maturities. | ||||
| Last-Out Term Loans, maturing June 16, 2028, bearing interest at | 80,988 | 76,952 | ||
| 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. | ||||
| As of December 30, 2024 and January 1, 2024 the effective | ||||
| interest rates were 15.16% and 15.18%, respectively. | ||||
| New Money Loans, maturing June 16, 2027, bearing interest at an | 10,436 | 10,081 | ||
| alternative base rate plus 6% or the Adjusted Term SOFR plus | ||||
| 7% plus a credit adjustment spread. Company has option to pay | ||||
| interest in kind at a rate equal to 4% rather than in cash. As of | ||||
| December 30, 2024 and January 1, 2024 the |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the company's total debt as of December 30, 2024, was $92,059. This figure is broken down into several components, including obligations under premium financing arrangements ($976), Last-Out Term Loans ($80,988) bearing interest at an alternative base rate plus 8% or the Adjusted Term SOFR plus 9%, and New Money Loans ($10,436) bearing interest at an alternative base rate plus 6% or the Adjusted Term SOFR plus 7%.
The Last-Out Term Loans mature on June 16, 2028, while the New Money Loans mature on June 16, 2027. Checkersrallys has the option to pay interest in kind at a rate equal to 6% for the Last-Out Term Loans and 4% for the New Money Loans rather than in cash. The effective interest rates as of December 30, 2024, were 15.16% for the Last-Out Term Loans and ranged from 14.92% to 15% for the New Money Loans.
Prospective franchisees should note that this debt level reflects the overall financial obligations of Checkersrallys. Understanding the nature and terms of this debt can provide insights into the financial stability and flexibility of the company. Franchisees may want to inquire about how Checkersrallys manages its debt and how it might impact the support and resources available to franchisees.