XML 19 R10.htm IDEA: XBRL DOCUMENT v3.23.1
LONG-TERM DEBT
6 Months Ended
Apr. 02, 2023
Debt Disclosure [Abstract]  
LONG-TERM DEBT

NOTE 4. LONG-TERM DEBT

 

On June 18, 2021, the Company, through its wholly owned subsidiary Wild Animal – Georgia, completed a refinancing transaction (the “2021 Refinancing”) with Synovus Bank (“Synovus”). The 2021 Refinancing included a term loan in the original principal amount of $1.95 million (the “2021 Term Loan”). The 2021 Term Loan bears interest at a rate of 3.75% per annum and is payable in monthly installments of approximately $26,480, based on a seven-year amortization period. The 2021 Term Loan has a maturity date of June 18, 2028. The 2021 Term Loan is secured by a security deed on the assets of Wild Animal – Georgia. The Company paid a total of approximately $1,514 in fees and expenses in connection with the 2021 Refinancing. The outstanding balance of the 2021 Term Loan was $1.51 million as of April 2, 2023.

 

On April 27, 2020, the Company, through its wholly owned subsidiary Aggieland-Parks, Inc., acquired Aggieland Wild Animal – Texas, financed in part with a $5.0 million loan (the “2020 Term Loan”) from First Financial Bank, N.A. (“First Financial”). The 2020 Term Loan is secured by substantially all the Aggieland Wild Animal – Texas assets, as well as guarantees from the Company and its subsidiaries. The 2020 Term Loan bears interest at a rate of 5.0% per annum, has a maturity date of April 27, 2031, and required interest only monthly payments through April 2021. The 2020 Term Loan requires monthly payments of $53,213 beginning in May 2021. The Company paid a total of approximately $62,375 in fees and expenses in connection with the 2020 Term Loan. On June 30, 2021, the Company used the $903,222 of incremental proceeds of the 2021 Term Loan, combined with additional funds, to paydown $1.0 million against the 2020 Term Loan, which had an outstanding balance of $3.13 million as of April 2, 2023. The Company is in compliance with the liquidity and annual debt coverage ratio financial covenants of the 2020 Term Loan.

 

Interest expense of $56,489 and $67,775 for the three month periods ended April 2, 2023 and April 3, 2022, respectively, includes $1,472 of debt closing costs amortization in each period. Interest expense of $115,225 and $136,671 for the six month periods ended April 2, 2023 and April 3, 2022, respectively, includes $2,944 of debt closing costs amortization in each period. Interest expense for the three month period and six month period ended April 3, 2022 also includes financial lease cost amortization of $3,016 and $5,027, respectively.

 

The following table represents the aggregate of the Company’s outstanding long-term debt:

 

   April 2, 2023   October 2, 2022 
   As of 
   April 2, 2023   October 2, 2022 
Loan principal outstanding  $4,644,216   $5,010,136 
Less: unamortized debt financing costs   (46,973)   (49,915)
Gross long-term debt   4,597,243    4,960,221 
Less current portion of long-term debt, net of unamortized costs and discount   (749,879)   (732,779)
Long-term debt  $3,847,364   $4,227,442 

 

As of April 2, 2023, the scheduled future principal maturities of the Company’s long-term debt by fiscal year are as follows:

 

      
2023  $372,728 
2024   773,562 
2025   810,139 
2026   848,474 
2027   888,655 
thereafter   950,658 
Total  $4,644,216 

 

 

PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

April 2, 2023