What was the Term SOFR at December 31, 2024, for Gold Star's first line of credit?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
and | No Registration | | Minnesota | No Registration | | New York | No Registration | | North Dakota | No Registration | | Rhode Island | No Registration | | South Dakota | No Registration | | Virginia | No Registration | | Washington | No Registration | | Wisconsin | No Registration | Amortization of these costs was $13,492, $13,146, and $12,973 for the years ended December 31, 2024, 2023, and 2022, respectively. Estimated amortization for the subsequent five years and thereafter is as follows:
| 2025 | $ 13,493 | |------------------------------|--------------| | 2026 | 13,493 | | 2027 | 13,493 | | 2028 | 13,493 | | 2029 | 13,493 | | Thereafter | 8,993 | | | $ 76,458 | In accordance with Accounting Standards Update (ASU) 2015-03 Subtopic 835-30, these costs are now shown on the consolidated balance sheets as a reduction of the loans to which they apply.
NOTE 10 - LINES OF CREDIT
The Company has a $1,750,000 line of credit with a bank. This line of credit is collateralized by a blanket lien on all of the Company's general business assets and charges interest at the Term Secured Overnight Financing Rate (SOFR) plus 2.20% (the Term SOFR was 4.49% at December 31, 2024). The amount utilized was $-0-, $92,581, and $1,681,630 at December 31, 2024, 2023, and 2022, respectively. The line matures in August 2025 and is subject to certain financial covenants, all of which were either waived or met at December 31, 2024.
The Company has another draw line of credit with the same bank.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company had a $1,750,000 line of credit with a bank. This credit line is secured by a blanket lien on Gold Star's general business assets. The interest charged on this line of credit is the Term Secured Overnight Financing Rate (SOFR) plus 2.20%. As of December 31, 2024, the Term SOFR was 4.49%.
This means that Gold Star's interest rate on this line of credit at the end of 2024 was 6.69% (4.49% + 2.20%). The amount utilized from this line of credit was $-0- on December 31, 2024. This line of credit matures in August 2025 and is subject to certain financial covenants, which were either waived or met at the end of 2024.
Gold Star also had another draw line of credit with the same bank for capital expenditures, which also had a Term SOFR of 4.49% at December 31, 2024, plus 2.35%. The note payable also bears interest at Term Secured Overnight Financing Rate (SOFR) plus 2.35% (the Term SOFR was 4.49% at December 31, 2024).