On April 15, 2015, the Company repaid a Promissory Note in the amount of $0.3 million dated October 10, 2014, to Richard Bagge, Hearthstones former CFO, who was then serving as interim CFO of the Company. The Company acquired the Promissory Note upon completion of the Merger. The Promissory Note accrued interest at the rate of five percent (5.0%) per annum, and had an original maturity date of January 31, 2015. No principal or interest payments were due under the Promissory Note until the maturity date. Past due principal and interest, to the extent permitted by law, accrued interest at eleven percent (11.0%).
Prior to the Merger, Hearthstone Partners and Hearthstone Associates financed the construction of and equipment for a new franchise restaurant which opened in the first quarter of 2015, and these loans were acquired by the Company upon completion of the Merger (the Restaurant Loans). On April 15, 2015, the Company repaid the first Restaurant Loan in the amount of $0.3 million. The loan accrued interest at the rate of five percent (5.0%) per annum, and the original maturity date of the loan was January 31, 2015. On November 8, 2015, the Company repaid the second Restaurant Loan in the amount of $0.5 million. The loan had a fully earned non-refundable loan fee rate equal to 6.0% of the original principal, or $36,000, originally matured in November 2015, and was collateralized by certain equipment.
On April 14, 2015, the Company repaid in full a Term Note in the amount of $3.3 million dated March 20, 2009, made by R. J. Dourney to a former partner of Hearthstone Associates, in the principal amount of $3.3 million, which was transferred to Hearthstone Associates immediately prior to the Merger, as a condition of the Merger. The Company acquired the Term Note upon completion of the Merger. The Term Note accrued interest at the rate of five percent (5.0%) per annum, and had a maturity date of March 30, 2016. Commencing on June 30, 2009, and continuing until the maturity date, Mr. Dourney agreed to make quarterly payments of accrued interest in arrears at the annual rate of five percent (5.0%), quarterly principal payments of $30,000 from June 30, 2011, through March 30, 2012, quarterly principal payments of $60,000 from June 30, 2012, through December 30, 2015, and a final balloon payment of the remaining outstanding balance on March 31, 2016. Past due principal and interest, to the extent permitted by law, would accrue interest at twelve percent (12.0%). The Term Note was secured by all of the assets of Mr. Dourney and was non-assignable without the lenders consent.
On April 6, 2015, the Company repaid in full two private investor notes in the aggregate amount of $2.0 million, including the Promissory Note dated June 1, 2013, made by Hearthstone Partners, as borrower, in favor of a third-party lender, in the principal amount of $1.5 million, and the Promissory Note dated June 1, 2013, made by Hearthstone Partners in favor of another third-party lender, in the principal amount of $0.5 million. The Company acquired these private investor notes upon completion of the Merger. The maturity dates of the private investor notes were May 31, 2016. The private investor notes accrued interest at a rate equal to LIBOR plus eight percent (8.0%) per annum. Interest was due to be paid quarterly. No principal payments were due under the private investor notes until the maturity date.
On June 3, 2015, the Company repaid in full two capital leases financed by a financial institution in the amount of $103,424. Total obligations under the capital leases were $131,000 and were collateralized by various pieces of restaurant equipment acquired under those capital leases. The Company acquired the capital leases upon completion of the Merger. As of December 28, 2015, the terms of these leases have been satisfied in full.
Guaranteed FFCC Loans.
In connection with Merger, the Company acquired the debt obligations of Hearthstone Partners under the Secured Promissory Notes dated on or about May 9, 2013, made by Hearthstone Partners, as borrower, in favor of First Franchise Capital Corporation, as lender, in the original aggregate principal amount of $5.4 million (FFCC Notes). The FFCC Notes originally had a term of 60 months, commencing on June 10, 2013, and accrued interest on the outstanding balance at the rate of 5.93%. Payments of principal and interest of $60,000 were due monthly with one balloon payment of $3.2 million originally due June 10, 2018. Under each of the FFCC Notes, a late fee equal to 10.0% of the amount past due was assessed on any late payments, reduced to 5.0% on any amount paid after the maturity date. The FFCC Notes were secured by all of the assets of Hearthstone Partners, including, without limitation, the Hearthstone franchise restaurants. The FFCC Notes could be prepaid with a prepayment fee of 1.0% of the outstanding principal balance.
As a condition of the lenders consent to the Merger, the Company agreed to guarantee the obligations of Hearthstone Partners under the FFCC Notes. As of April 1, 2015, the Company placed $5.0 million in a restricted