What is the anticipated repayment date for the 7.253% Series 2024-1 Class A-2 Notes for Hardees?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
as note prepayments, subject to certain exceptions, (iii) maintenance of specified reserve accounts, (iv) maintenance of certain debt service coverage ratios, (v) mandatory prepayments with indemnification payments for defective or ineffective collateral, and (vi) covenants relating to record
keeping, access to information and similar matters. If certain covenants or restrictions are not satisfied or complied with, the Senior Notes are subject to accelerated repayment events and events of default. Although management does not anticipate an event of default, if any such event occurred and was not cured within any applicable cure period, the unpaid amounts outstanding could become immediately due and payable.
In connection with the amendment of the 2018-1 Variable Funding Notes in fiscal year 2023, we incurred debt issuance costs of $861 which were capitalized. These deferred financing costs will be amortized using the effective interest method over the expected term of the 2018-1 Variable Funding Notes.
In the first quarter of fiscal 2025, the Co-Issuers issued an aggregate principal amount of $350,000 of Series 2024-1 7.253% Fixed Rate Senior Secured Notes, Class A-2 (the "Series 2024-1 Class A-2 Term Notes"). The Series 2024-1 Class A-2 Term Notes have an anticipated repayment date of March 2031 and a legal final maturity date of March 2054.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the anticipated repayment date for the 7.253% Series 2024-1 Class A-2 Notes is March 2031. These notes were issued in the first quarter of fiscal year 2025, with an aggregate principal amount of $350,000.
The Series 2024-1 Class A-2 Term Notes require scheduled quarterly principal payments of $875, with the first payment due on June 20, 2024. Interest payments are also due quarterly in arrears on the 20th day of March, June, September, and December.
A portion of the proceeds from issuing the Series 2024-1 Class A-2 Term Notes was used to repay the Series 2018-1 Class A-2-II Term Notes in full, including accrued interest. The legal final maturity date for these notes is March 2054.
It's important to note that Hardees may repay all or a portion of the remaining principal amount of these notes at par beginning twenty-four months prior to the anticipated repayment date. However, failure to repay by the anticipated date could result in additional interest and accelerated principal payments on all outstanding Senior Notes.