What is the maturity date of the 2021 VFN facility for Precision Door Service?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
Class A-1 Notes"), with a final maturity date of April 30, 2051, which is only available for limited purposes and may not be drawn by the Issuer. Interest on draws is paid weekly at the Secured Overnight Financing Rate (SOFR) plus 300 basis points. As of December 31, 2024 and 2023, no borrowings had been made on the Series 2021-1 Class A-1 Notes.
The Securitization Transaction also provided for a $30,000 variable rate Class A-1-VFN Senior Note (the "2021 VFN facility"), with a maturity date of April 30, 2026, and two one-year extension options. Interest on borrowings is paid quarterly at SOFR, plus 266 basis points. As of December 31, 2024, $8,000 of borrowings were outstanding on the 2021 VFN facility and availability was $5,050.
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the $30 million 2021 VFN facility has a maturity date of April 30, 2026, and includes two one-year extension options. This facility incurs interest paid quarterly at SOFR plus 266 basis points.
The document also indicates that Precision Door Service considered the upcoming maturity of the 2021 VFN Facility and concluded it has the unilateral ability to extend the maturity date to April 2027, if certain conditions are met. The company evaluated the conditions precedent and concluded they will be met throughout 2025; therefore, Precision Door Service intends to execute the extension prior to the initial maturity date of April 30, 2026.
For a prospective franchisee, this information is relevant because it provides insight into the financial obligations and strategies of Precision Door Service. Understanding the maturity dates and extension options of the company's debt can help franchisees assess the financial stability and long-term planning of the franchisor. It also shows that Precision Door Service is actively managing its debt and has a plan to extend the maturity date of the 2021 VFN facility, which could provide more financial flexibility.