On what date was the Series 2018-1 Variable Funding Notes amended for Hardees, and what were the changes?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
----------------|-----------| | 2027 | 11,800 | | 2028 | 383,800 | | 2029 | 398,675 | | 2030 | 3,500 | | Thereafter | 329,875 | | Total long-term debt | 1,139,450 |
Senior Notes
In April 2013, Carl's Jr. Funding LLC and Hardee's Funding LLC (collectively, the "Co-Issuers"), our indirect wholly-owned subsidiaries, issued outstanding senior secured notes under securitized facility loans. The indenture governing the facility loans (the "Indenture") allows the Co-Issuers to issue additional series of notes in the future subject to certain conditions.
As of January 31, 2025, the Co-Issuers had issued the following outstanding series of fixed rate senior secured notes: (i) 2018-1 Class A-2-III Notes with an initial principal amount of $250,000; (ii) 2020-1 Class A-2 Notes with an initial principal amount of $400,000; (iii) 2021-1 Class A-2 Notes with an initial principal amount of $180,000 and (iv) 2024-1 Class A-2 Notes with an initial principal amount of $350,000 (collectively, the notes described in (i) to (iv) are referred to herein as the "Class A-2 Notes").
The Series 2018-1 Variable Funding Notes provide for senior secured revolving facility loans, including subfacilities for swingline loans and letters of credit, in an aggregate amount of $125,000. On April 5, 2024, the Series 2018-1 Variable Funding Notes were amended to increase the borrowing capacity from $70,000 to $125,000 and extend the maturity date to March 2029, including options for renewal for two additional twelve-month terms (subject to certain conditions, including a minimum debt service c
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the Series 2018-1 Variable Funding Notes were amended on April 5, 2024. Prior to this amendment, these notes provided for senior secured revolving facility loans, including subfacilities for swingline loans and letters of credit, in an aggregate amount of $70,000.
The amendment on April 5, 2024, increased the borrowing capacity from $70,000 to $125,000. Additionally, the maturity date was extended to March 2029, which includes options for renewal for two additional twelve-month terms. These renewal options are subject to certain conditions, one of which is maintaining a minimum debt service coverage ratio.
The Series 2018-1 Variable Funding Notes bear interest at a variable rate, which is determined by how the borrowings were funded by participating investors. The interest rate is equal to either (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%. Hardees is also required to pay a commitment fee of 0.50% per annum for any unused commitments and letter of credit fees of 3.00% per annum on outstanding non-cash collateralized letters of credit. Interest and other fees are due quarterly in arrears on the 20th day of March, June, September, and December. As of January 31, 2025, the Co-Issuers had zero outstanding loan borrowings, $24,245 of outstanding letters of credit and remaining availability of $100,755 under our Series 2018-1 Variable Funding Notes.