celebrity of $12,256,470 which was paid in March 31, 2023, of which approximately $2,000,000 was settled in ownership of Class B units in the Parent.

NOTE G - SENIOR CREDIT FACILITY

On March 31, 2023, the Company and its Parent entered into a Senior Credit Facility Agreement (the "Loan Agreement") with two lenders. The Loan Agreement provides for borrowings through March 31, 2028 (the "Maturity Date"). Borrowings will bear interest at the Federal Reserve Bank of New York's daily secured overnight financing rate, plus an additional margin ranging from 6.5 to 7 percent based on a leverage ratio calculated for the Company. Interest is payable monthly, and the principal balance is payable in full at the maturity date. The maximum amount that may be outstanding under the Loan Agreement is $47,000,000, and consists of a $40,000,000 senior secured term loan, a $2,000,000 secured delayed draw term loan, and a $5,000,000 uncommitted senior secured delayed draw term loan. Interest is payable monthly, and the principal balance is payable in full at the maturity date. In connection with the Loan Agreement above, the Company must comply with certain financial covenants. As part of the Loan Agreement, the lenders invested $2,000,000 in the Company's new parent. The term note was recorded net of debt issuance costs of $972,564, which are being amortized over five years. The balance of the term loan at December 31, 2023 was $40,000,000 and the debt issuance costs were $826,174. The amortization of the debt issuance costs for the year ended December 31, 2023 was $146,390, which were included in interest expense on the statement of operations. The Company is anticipating a payment of approximately $1,500,000, in March 2024, subject to the "Excess Cash Sweep" provision of the Loan Agreement. Debt issuance cost amortization for the next twelve months

Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)