What is the expiration date of Corcoran's Revolving Credit Facility?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
fits are summarized in the table below: | | |---|---| | Unrecognized tax benefits—January 1, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $17 | (a) As of December 31, 2024, the Company had $1,100 million of borrowing capacity under its Revolving Credit Facility. As of December 31, 2024, there were $490 million outstanding borrowings under the Revolving Credit Facility and $33 million of outstanding undrawn letters of credit. On February 21, 2025, the Company had $585 million outstanding borrowings under the Revolving Credit Facility and $33 million of outstanding undrawn letters of credit.
Senior Secured Credit Agreement
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The Company's Amended and Restated Credit Agreement dated as of March 5, 2013 (as amended, amended and restated, modified or supplemented from time to
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, the maturity date for its Revolving Credit Facility is July 27, 2027. However, this date could be accelerated to March 16, 2026, if the 0.25% Exchangeable Senior Notes are not extended, refinanced, or replaced to have a maturity date after October 26, 2027. This earlier date would also apply if the notes are not otherwise discharged, defeased, or repaid by March 16, 2026.
This information is relevant for prospective franchisees as it provides insight into Corcoran's financial obligations and potential debt management. The Revolving Credit Facility is part of Corcoran's Senior Secured Credit Facility, which includes a $1,100 million revolving credit line with a $150 million sub-facility for letters of credit. The interest rate on revolving loans is based on either the Term Secured Overnight Financing Rate (SOFR) plus a 10 basis point credit spread adjustment or JP Morgan Chase Bank, N.A.'s prime rate (ABR), plus an additional margin that adjusts based on the company's senior secured leverage ratio.
The potential for the maturity date to spring forward highlights a degree of financial complexity and interconnectedness within Corcoran's debt structure. Franchisees should be aware that changes in these debt arrangements could indirectly affect Corcoran's strategic decisions and resource allocation. Understanding these financial details can help franchisees assess the stability and long-term prospects of the Corcoran franchise system.
It is important for potential franchisees to discuss Corcoran's debt management strategy and any potential impacts on the franchise system with the franchisor. This discussion should clarify how Corcoran plans to manage its debt obligations and ensure continued support for its franchisees.