When is the term loan scheduled to mature for Management Recruiters?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
SG&A expense, the elimination of losses associated with the transaction, and the consequential tax effects that would have resulted had the acquisition closed on January 1, 2021.
In connection with the Northbound acquisition, we entered into an amortizing term loan from the seller for $1.5 million scheduled to mature on March 1, 2025 that bears interest at 4.0%. The term loan is unsecured and subordinated to our senior instruments (Truist line of credit and Truist term loan). The Northbound term loan is payable in 36 monthly installments beginning on April 1, 2022 until March 1, 2025. We may prepay the Northbound term loan in whole o
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, in connection with the Northbound acquisition, Management Recruiters entered into an amortizing term loan from the seller for $1.5 million. This loan is scheduled to mature on March 1, 2025, and bears an interest rate of 4.0%.
The Northbound term loan is unsecured and subordinated to Management Recruiters' senior instruments, specifically the Truist line of credit and Truist term loan. The loan is structured to be payable in 36 monthly installments, which began on April 1, 2022, and continue until the maturity date of March 1, 2025.
Management Recruiters retains the option to prepay the Northbound term loan, either in full or partially, at any time without incurring penalties or premiums. This can be achieved by paying the principal amount to be prepaid along with the accrued interest up to the date of prepayment. This provides Management Recruiters with financial flexibility in managing its debt obligations.