When are the interest payments due for the Series 2018-1 Class A-2 Notes for Hardees?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
es 2018-1 Fixed Rate Senior Secured Notes, Class A-2, ("Series 2018-1 Class A-2 Notes") and $70,000 Series 2018-1 Class A-1 Variable Funding Senior Secured Notes ("Series 2018-1 Variable Funding Notes", and together with the Series 2018-1 Class A-2 Notes, the "Series 2018-1 Senior Notes"). The i
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the interest payments for the Series 2018-1 Class A-2 Notes are due quarterly in arrears. These payments are scheduled for the 20th day of March, June, September, and December. This means that interest accrued over the previous quarter is paid on these dates.
Hardees issued the Series 2018-1 Class A-2 Notes in three tranches with different interest rates and anticipated repayment dates. While one tranche was paid down using proceeds from the Series 2020-1 Class A-2 Notes, some of the original Series 2018-1 notes remain outstanding. The consistent quarterly interest payment schedule applies to these remaining notes.
For a prospective Hardees franchisee, understanding the debt structure of the parent company can provide insight into the financial stability and obligations of the franchisor. The consistent and defined interest payment schedule for the Series 2018-1 Class A-2 Notes, along with other senior notes, indicates a structured approach to debt management. However, it's important to note that these notes are subject to covenants and restrictions, and failure to comply with these could lead to accelerated repayment events.