What was the interest rate for the 2021-1 Class A-2 Notes for Hardees as of January 31, 2025?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
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 under our Series 2018-1 Variable Funding Notes.
On December 21, 2020, the Co-Issuers paid down the entire outstanding principal balance of our Series 2018-1 Class A-2-I Notes with the issuance of an aggregate principal amount of $400,000 of Series 2020-1 3.981% Fixed Rate Senior Secured Notes, Class A-2 (the "Series 2020-1 Class A-2 Notes"). Our Series 2018-1 4.959% Fixed Rate Senior Secured Notes, Class A-2-III and Series 2018-1 5.710% Fixed Rate Senior Secured Notes, Class A-2-III remain outstanding. The Series 2020-1 Class A-2 Notes were issued pursuant to an amendment to the Indenture and have an anticipated repayment date of December 2027. The Series 2020-1 Class A-2 Notes have a legal final maturity date of December 2050. The Series 2020-1 Class A-2 Notes require scheduled quarterly principal payments of $1,000 beginning March 22, 2021. The interest payments for the Series 2020-1 Class A-2 Notes are due quarterly in arrears on the 20th day of each March, June, September and December.
On June 24, 2021, the Co-Issuers issued an aggregate principal amount of $180,000 of Series 2021-1 2.865% Fixed Rate Senior Secured Notes, Class A-2 (the "Series 2021-1 Class A-2 Notes", and together with the "Series 2020-1 Class A-2 Notes" and the remaining Series 2018-1 Class A-2 Notes, all of which remain outstanding, the "Class A-2 Notes" and, collectively with the Series 2018-1 Variable Funding Notes, the "Senior Notes"). The Series 2021-1 Class A-2 Notes were issued pursuant to an amendment to the Indenture and have an anticipated repayment date of June 2028. The Series 2021-1 Class A-2 Notes have a legal final maturity date of June 2051. The Series 2021-1 Class A-2 Notes require scheduled quarterly principal payments of $450 with the first principal payment due September 20, 2021. The interest payments for
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the Series 2021-1 Class A-2 Notes had an interest rate of 2.865% as of January 31, 2025. These notes were issued on June 24, 2021, with an aggregate principal amount of $180,000. The anticipated repayment date for these notes is June 2028, and they have a legal final maturity date of June 2051.
The Series 2021-1 Class A-2 Notes require scheduled quarterly principal payments of $450, with the first payment due on September 20, 2021. Interest payments are due quarterly in arrears on the 20th day of March, June, September, and December. These notes, along with other series, are collectively referred to as the Class A-2 Notes and, together with the Series 2018-1 Variable Funding Notes, are known as the Senior Notes.
The Senior Notes are secured by substantially all assets of Carl's Jr. Funding LLC and Hardee's Funding LLC, referred to as the CKE Securitization Entities. However, they are not guaranteed by or secured with the assets of CKE or its other subsidiaries, including CKE Restaurants. The indenture requires the CKE Securitization Entities to report and remit weekly cash flows to the trustee of the Senior Notes, with these cash flows being subject to a priority of payments for debt service and other specified purposes. Any excess cash flow is remitted to CKE Restaurants as an equity distribution.
For a prospective Hardees franchisee, understanding the financial structure and obligations of the parent company is crucial. The franchisee should be aware that the performance of the securitized debt could indirectly impact the financial stability and strategic decisions of Hardees. While the notes are not directly tied to the assets of CKE Restaurants, the cash flow dynamics and debt obligations of the CKE Securitization Entities could influence the resources available for supporting the Hardees brand and its franchisees.