v3.25.2
DEBT
 6 Months Ended
Jun. 29, 2025
Debt Disclosure [Abstract]  
DEBT DEBT
Long-term debt consisted of the following (in millions):
June 29, 2025December 29, 2024
Final MaturityAnticipated Call DateRateFace ValueBook ValueFace ValueBook Value
Twin Securitization Notes
Super Senior Debt10/26/205410/25/20279.00%$12.1 $11.9 $12.1 $12.0 
Senior Debt10/26/205410/25/20279.00%269.3 264.3 269.3 265.5 
Senior Subordinated Debt10/26/205410/25/202710.00%57.6 54.1 57.6 53.7 
Subordinated Debt10/26/205410/25/202711.00%77.7 76.8 77.7 76.6 
Total Securitized Debt416.7 407.1 416.7 407.8 
Equipment Notes5/5/2027 to 7/31/2028N/A
7.99%-11.50%
4.1 4.1 4.7 4.7 
Construction Loan IV10/1/2025N/A12.50 %— — 3.2 3.2 
Total debt$420.8 411.3 $424.6 415.7 
Current portion of long-term debt(10.2)(10.7)
Long-term debt$401.1 $405.0 
Twin Securitization Notes
The Twin Securitization Notes require that the principal (if any) and interest obligations be segregated to ensure appropriate funds are reserved to pay the quarterly principal and interest amounts due. The amount of monthly cash flow that exceeds the required monthly interest reserve is generally remitted to the Company. Interest payments are required to be made on a quarterly basis. The legal final maturity date of the Twin Securitization Notes is October 26, 2054; however, it is currently anticipated that, unless earlier prepaid to the extent permitted under the Base Indenture, the Twin Securitization Notes will be repaid on October 25, 2027 (the “Anticipated Repayment Date”). If the Twin Securitization Notes are not repaid or refinanced by the Anticipated Repayment Date, additional interest will accrue on the then outstanding balance of each class of the Twin Securitization Notes at a rate of 5.0% per annum. Each class of the Twin Securitization Notes may be prepaid in whole or in part on any business day; provided that optional prepayment made after the Anticipated Repayment Date must be applied first to Class A-2-I, second to Class A-2-II, third to Class B-2 and fourth to Class M-2 of the Twin Securitization Notes.
Additionally, pursuant to the Base Indenture, upon each “Qualified Equity Offering” (as defined in the Base Indenture), which is a public or private offering by Twin Hospitality Group Inc. of our common equity securities for cash, subject to certain limited exceptions, Twin Hospitality Group Inc. is required to deposit 75% of the net proceeds from such offering into a segregated, non-interest bearing trust account to be used towards the repayment of the Twin Securitization Notes, until an aggregate of $75.0 million has been repaid in that manner. If the amount of net proceeds from our Qualified Equity Offerings used for repayment of the Twin Securitization Notes is not at least $25.0 million on or prior to each of April 25, 2025, July 25, 2025 and October 27, 2025, or is not at least $75.0 million on or prior to January 26, 2026, then under any such circumstance, a Cash Flow Sweeping Event (as defined in the Base Indenture) would occur, whereupon certain excess cash flows from our
operations will be used to make additional principal payments, on a pro rata basis, on the three most senior classes of the Twin Securitization Notes.
The material terms of the Twin Securitization Notes contain covenants which are standard and customary for these types of agreements, including the following financial covenants: (i) debt service coverage ratio, (ii) interest-only debt service coverage ratio and (iii) senior leverage ratio. As of June 29, 2025, the Company was in compliance with these covenants.
Construction Loan Agreement (Twin Peaks)
On September 20, 2024, an indirect subsidiary of the Company entered into a loan agreement to borrow $3.2 million with an initial maturity of October 1, 2025, bearing interest at 12.5% per annum and is secured by land and building of a new corporate restaurant. The construction loan was paid in full during the first quarter of 2025.

Scheduled Principal Maturities

Scheduled principal maturities of long-term debt for the next five fiscal years are as follows (in millions):
Fiscal YearLong-Term Debt
Remainder of 2025$5.1 
202610.3 
202710.4 
20289.5 
20298.9