How much cash did Precision Door Service pay for interest in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
the unilateral ability to extend the maturity date to January 2027, if certain conditions are met. The Company evaluated the conditions precedent and concluded they will be met throughout 2025; therefore, the Company will have the unilateral ability to extend and intends to execute the extension prior to the initial maturity date of January 30, 2026.
In conjunction with the Third Securitization Transaction, $14,177 in transaction fees were capitalized as deferred financing costs, to be amortized over the anticipated term of the notes using the effective interest method. For the years ended December 31, 2024 and 2023, $2,868 and $2,654 of previously capitalized deferred financing costs related to the Third Securitization Transaction were amortized to interest expense on the Consolidated Statements of Operations and Comprehensive Income (Loss), respectively.
On December 11, 2024, the Company, through its indirect, wholly owned subsidiary, Neighborly Issuer LLC, entered into a $75,000 variable rate Class A-1-VFN Senior Note (the "2024 VFN Facility") through a fourth whole business securitization transaction (the "Fourth Securitization Transaction").
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to the 2025 FDD, Precision Door Service amortized $2,654 of previously capitalized deferred financing costs related to the Third Securitization Transaction to interest expense on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 31, 2023. Additionally, $1,510 of previously capitalized deferred financing costs related to the Second Securitization Transaction were amortized to interest expense on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 31, 2023.
These figures represent the amortization of deferred financing costs into interest expense, not necessarily the total cash outlay for interest payments. The document details various securitization transactions and related financing arrangements, including senior notes and variable rate notes, but it does not provide a single, aggregated figure for total cash interest paid in 2023.
Prospective franchisees should note that while the FDD provides details on specific financing activities and the amortization of related costs, it does not offer a comprehensive view of all interest expenses. To gain a clearer understanding of Precision Door Service's overall interest payments, it would be prudent to request a detailed breakdown of interest expenses from the franchisor, specifying all components of interest paid during the 2023 fiscal year. This information is essential for assessing the company's financial health and obligations.