What was the interest rate for the Series 2020-1 Class A-2 Notes issued by Hardees?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ditional 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 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
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 had a fixed interest rate of 3.981%. These notes were issued on December 21, 2020, with an aggregate principal amount of $400,000. The issuance was used to pay down the entire outstanding principal balance of the Series 2018-1 Class A-2-I Notes.
The Series 2020-1 Class A-2 Notes were issued as an amendment to the Indenture and have an anticipated repayment date of December 2027 and 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 for these notes are due quarterly in arrears on the 20th day of March, June, September, and December.
If Hardees does not repay any tranche of Class A-2 Notes in full by its anticipated repayment date, such tranche of the Class A-2 Notes would be subject to additional interest at an interest rate of at least 5% per annum on the outstanding principal amount, and principal payments on all outstanding Senior Notes would accelerate until the debt is paid in full. Beginning thirty months prior to the anticipated repayment date for the Series 2020-1 Class A-2 Notes, the Co-Issuers may repay all or a portion of the remaining principal amount of such applicable tranche of Class A-2 Notes at par.