What is the reported total debt for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Total maturities of debt (1) | $ 3,805 |
|---|---|
| (1) Excludes $4 million of finance lease obligations and $27 million of unamortized discounts and deferred financing fees. |
| 2025 | $ 454 |
|---|---|
| 2026 | 405 |
| 2027 | 605 |
| 2028 | 405 |
| 2029 | 651 |
| Thereafter | 1,285 |
| Total maturities of debt (1) | $ 3,805 |
Variable Rate Term Loan—During the year ended December 31, 2024, we entered into a credit agreement with Bank of America to correspond with the total amount of the secured financing receivable we issued to the buyer in conjunction with the sale of Park Hyatt Zurich (see Note 7) for a CHF 41 million (approximately $45 million outstanding at December 31, 2024) variable rate term loan, which matures in 2029.
Floating Average Rate Loan—During the year ended December 31, 2012, we obtained a secured construction loan with Banco Nacional de Desenvolvimento Econômico e Social - BNDES ("BNDES") in order to develop Grand Hyatt Rio de Janeiro. The loan was split into four separate sub-loans. Sub-loans (a) and (b) mature in 2031 and bear interest at the Brazilian Long Term Interest Rate - TJLP plus 2.02%, and when the TJLP rate exceeds 6%, the amount corresponding to the TJLP portion above 6% is required to be capitalized daily. Sub-loans (c) and (d) matured during the year ended December 31, 2023. At December 31, 2024, the weighted-average interest rates for the sub-loans we have drawn upon is 8.02%. At December 31, 2024 and December 31, 2023, we had Brazilian Real ("BRL") 119 million, or $19 million, and BRL 136 million, or $28 million, outstanding, respectively.
Source: Item 10 — OTHER ASSETS (FDD pages 132–156)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the total maturities of debt is reported as $3,805, excluding $4 million of finance lease obligations and $27 million of unamortized discounts and deferred financing fees. This figure represents the aggregate amount of debt The Standardx is obligated to repay in the future, based on the schedule provided. The debt maturities are broken down by year, ranging from 2025 to thereafter.
Specifically, the debt maturities are as follows: $454 in 2025, $405 in 2026, $605 in 2027, $405 in 2028, $651 in 2029, and $1,285 thereafter. These figures provide a detailed schedule of The Standardx's debt repayment obligations over the coming years. The exclusion of finance lease obligations and unamortized discounts/deferred financing fees suggests that the reported total only reflects the principal amount of the debt.
For a prospective franchisee, understanding The Standardx's debt structure is crucial as it can impact the financial stability and strategic decisions of the company. A high level of debt may indicate a higher risk, as a significant portion of the company's revenue might be used to service the debt. However, it is also important to consider the nature of the debt, the interest rates, and the company's ability to generate sufficient cash flow to meet its obligations. Franchisees may want to further investigate the details of this debt and how it might affect the franchise system.
It is also important to note that The Standardx also has a variable rate term loan with Bank of America for CHF 41 million (approximately $45 million outstanding at December 31, 2024), which matures in 2029. Additionally, at December 31, 2024, The Standardx had Brazilian Real ("BRL") 119 million, or $19 million, outstanding on a floating average rate loan. These loans should be considered when evaluating the overall debt obligations of The Standardx.