What is the anticipated repayment date for the Series 2020-1 Class A-2 Notes issued by Hardees?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ng Notes bear interest at a variable interest rate equal to (a) a commercial paper rate plus 3.00%, (b) the term SOFR rate plus 3.00% or (c) 2.00% plus the greater of (i) the Prime Rate, (ii) the Federal Funds rate plus 0.50%,
or (iii) term SOFR plus 1.00%. The actual interest rate incurred is determined by how the borrowings were funded by participating investors, but in any event, will fall under one of the three scenarios described above. The Series 2018-1 Variable Funding Notes require us to pay a commitment fee of 0.50% per annum for unused commitments and letter of credit fees of 3.00% per annum on our outstanding non-cash collateralized letters of credit. Interest and other fees on the Series 2018-1 Variable Funding Notes are due quarterly in arrears on the 20th day of each March, June, September and December. As of January 31, 2024, we had no outstanding loan borrowings, $22,647 of outstanding letters of credit and remaining availability of $47,353
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the Series 2020-1 Class A-2 Notes have an anticipated repayment date of December 2027. These notes, with an aggregate principal amount of $400,000, carry a 3.981% fixed interest rate. They were issued to pay down the outstanding principal balance of the Series 2018-1 Class A-2-I Notes.
The Series 2020-1 Class A-2 Notes were issued following an amendment to the Indenture and have a legal final maturity date of December 2050. The notes require scheduled quarterly principal payments of $1,000, which began on March 22, 2021. Interest payments are due quarterly in arrears on the 20th day of March, June, September, and December.
It is important to note that Hardees expects to repay or refinance each tranche of the Class A-2 Notes at or before its anticipated repayment date. However, if any tranche is not repaid in full by its anticipated repayment date, it will be subject to an additional interest rate of at least 5% per annum. Furthermore, principal payments on all outstanding Senior Notes would accelerate until the debt is fully paid. Hardees also has the option to repay all or a portion of the remaining principal amount of these notes at par, starting thirty months prior to the anticipated repayment date.