What was the interest rate for The Standardx's 2034 Notes?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
ance on the 2023 Fixed Rate Notes, as described below.
- In 2024, we issued an aggregate $600 million of 5.250% senior notes due 2029 at an aggregate issue price of 99.693% (the "2029 Notes"), $450 million of 5.375% senior notes due 2031 at an issue price of 99.745% (the "2031 Notes"), and $350 million of 5.500% senior notes du
Source: Item 10 — OTHER ASSETS (FDD pages 132–156)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, in 2024, The Standardx issued $350 million of 5.500% senior notes due in 2034. These notes were issued at a price of 98.860%.
This means that The Standardx borrowed $350 million, agreeing to pay an annual interest rate of 5.500% on these notes until they mature in 2034. However, the notes were sold at a discount, with an issue price of 98.860%, meaning investors paid less than the face value of the notes. This discount is a form of compensation to the investors for purchasing the notes.
For a prospective franchisee, this information provides insight into how The Standardx manages its debt and finances its operations. Understanding the terms of these senior notes, such as the interest rate and maturity date, can help potential franchisees assess the financial stability and long-term planning of The Standardx.