When were the principal and interest on the Variable Funding Notes repaid in full for Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Variable Funding Notes — Depending on the type of borrowing under the Variable Funding Notes, interest on the Variable Funding Notes will be based on (i) the prime rate, (ii) overnight federal funds rates, (iii) the London interbank offered rate for U.S. Dollars or (iv) the lenders' commercial paper funding rate plus any applicable margin, as set forth in the Variable Funding Note Purchase Agreement. There is a scaled commitment fee on the unused portion of the Variable Funding Notes facility of between 50 and 100 basis points. The principal and interest on the Variable Funding Notes were repaid in full in October 2024. Following the anticipated repayment date (and any extensions thereof), additional interest will accrue equal to 5.00% per annum.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the principal and interest on the Variable Funding Notes were repaid in full in October 2024. These notes are a type of debt instrument where the interest rate adjusts based on certain benchmarks. The interest on the Variable Funding Notes is based on factors such as the prime rate, overnight federal funds rates, the London interbank offered rate for U.S. Dollars, or the lenders' commercial paper funding rate, plus any applicable margin, as detailed in the Variable Funding Note Purchase Agreement.
Additionally, there is a commitment fee on the unused portion of the Variable Funding Notes facility, which ranges between 50 and 100 basis points. After the anticipated repayment date, including any extensions, additional interest will accrue at a rate of 5.00% per annum.
For a prospective Del Taco franchisee, this information provides insight into the financial management and debt obligations of the company. Understanding how Del Taco manages its debt, including the terms and repayment schedules of its Variable Funding Notes, can help franchisees assess the financial stability and strategic financial decisions of the franchisor.