When are interest and other fees due on the Series 2018-1 Variable Funding Notes for Hardees?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
the borrowing capacity from $70,000 to $125,000 and to 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 coverage ratio). The Series 2018-1 Variable Funding Notes bear interest at a variable interest rate equal to (a) a commercial paper r
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, interest and other fees on the Series 2018-1 Variable Funding Notes are due quarterly. These payments are made in arrears on the 20th day of March, June, September, and December.
These notes are part of Hardees's financing structure, which includes senior secured revolving facility loans. The interest rates on these notes are variable and are determined by how the borrowings were funded by participating investors. The interest rate is based on a commercial paper rate plus 3.00%, the term SOFR rate plus 3.00%, or 2.00% plus the greater of the Prime Rate, the Federal Funds rate plus 0.50%, or the term SOFR plus 1.00%.
In addition to interest, Hardees is 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. 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 the Series 2018-1 Variable Funding Notes.