What was the deferred finance cost amortization for Del Taco in 2024?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
nd 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 Del Taco Franchise Disclosure Document, specific details regarding the deferred finance cost amortization for Del Taco in 2024 are not explicitly provided. However, the FDD does mention several instances of capitalized debt issuance costs and their amortization related to various financing activities.
For example, in connection with Del Taco's acquisition, $0.3 million in debt issuance costs related to a new syndicated credit facility were capitalized and are being amortized into interest expense over the expected term of the credit facility. Additionally, in connection with the 2022 Notes, $17.4 million of debt issuance costs were capitalized and are being amortized into interest expense over the Anticipated Repayment Dates, utilizing the effective interest rate method. The costs related to the Variable Funding Notes are presented within "Other assets, net" and are being amortized over the Anticipated Repayment Date of February 2027 using the straight-line method.
While the FDD provides these details about debt issuance costs and amortization methods, it does not offer a specific figure for the deferred finance cost amortization recognized during the 2024 fiscal year. A prospective franchisee should consider asking the franchisor for specific details about the amortization of deferred financing costs recognized during the 2024 fiscal year to gain a clearer understanding of the company's financial performance and obligations.