What was the amount of interest payments made by Del Taco in 2023?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
nts, intellectual property and license agreements for the use of intellectual property. Upon certain trigger events, mortgages will be required to be prepared and recorded on the real estate assets.
Revolving credit facility — In connection with the Del Taco acquisition, Del Taco's existing debt of $115.2 million related to a Syndicated Credit Facility dated August 5, 2015, was repaid and extinguished on the Closing Date. On the Closing Date, Del Taco entered into a new syndicated credit facility with an aggregate principal amount of up to $75.0 million, which now matures on February 28, 2025. The Company capitalized $0.3 million of debt issuance costs, which are being amortized into interest expense over the expected term of the credit facility. The revolving credit facility, as amended, included a limit of $20.0 million for letters of credit, all of which were cancelled as of September 29, 2024. As of September 29, 2024, we had no outstanding borrowings and available borrowing capacity of $75.0 million under the facility.
Bridge commitment letter — In connection with the Merger Agreement, the Company secured commitments for a bridge financing facility in an amount of up to $600.0 million (the "Bridge Facility"). No amounts were drawn under the Bridge Facility, which was terminated as a result of our securitization refinancing transaction. The Company expensed approximately $2.1 million for the unamortized issuance costs associated with this commitment which is presented in "Interest expense, net" in the consolidated statement of operations.
Maturities of long-term debt — Assuming repayment by the Anticipated Repayment Dates and based on the leverage ratio as of September 29, 2024, principal payments on our long-term debt outstanding at September 29, 2024 for each of the next five fiscal years and thereafter are as follows (in thousands):
| 2025 | $ | 35,880 |
|---|---|---|
| 2026. |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, specific details regarding the exact amount of interest payments made by Del Taco in 2023 are not explicitly disclosed. However, the FDD does provide some information related to interest expenses and debt.
Item 21 includes discussion of a revolving credit facility, bridge commitment letter, and maturities of long-term debt. It mentions that upon acquiring Del Taco, existing debt of $115.2 million was repaid, and a new syndicated credit facility was entered into. The company also expensed approximately $2.1 million for unamortized issuance costs associated with a bridge facility, presented as "Interest expense, net" in the consolidated statement of operations. Additionally, the net proceeds from the sale of 2022 Notes were used to repay $570.7 million of outstanding principal, along with a make-whole premium and unpaid interest, resulting in a loss on early extinguishment of debt of $5.6 million, also presented as "Interest expense, net".
While these excerpts provide context around Del Taco's debt and related expenses, the specific amount of interest payments made in 2023 is not broken out. A prospective franchisee should consider asking the franchisor for a detailed breakdown of interest expenses for 2023 to gain a clearer understanding of the company's financial obligations and how they might impact profitability.