Amtrak 2013 Annual Report Download - page 74

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1411-1359280 35
7. Mortgages and Debt (continued)
Mortgage Obligations
Penn Station Mortgage
In June 2001, PSL mortgaged a substantial portion of improvements located at Penn Station in
New York, New York for $300.0 million at a fixed rate of interest of 9.25% per annum, which
increased to 9.50% effective October 2002, receiving net cash proceeds of $296.2 million. Of
this amount, $34.4 million as of September 30, 2013 and 2012 was deposited into escrow for the
benefit of the lender and is recorded in “Deferred charges, deposits, and other” in the
Consolidated Balance Sheets. Semiannual principal plus interest payments are due on the
mortgage through maturity in June 2017. The outstanding balance due on the mortgage was
$139.6 million on September 30, 2013 and $160.5 million on September 30, 2012. The mortgage
loan is not insured or guaranteed by any governmental entity, private mortgage or other insurer,
trustee, or any other person.
High Speed Maintenance Facilities
On October 30, 2012, Amtrak purchased the equity ownership interests related to leveraged lease
agreements under which Amtrak leases three Acela maintenance facilities. As a result of the
buyout, Amtrak no longer makes lease payments relating to the equity interest, but continues to
make payments servicing the leveraged lease debt. As of September 30, 2013, the balance of
such debt was $75.6 million.
Frequency Converter Facility
During fiscal year 2001, PEDFA completed two issues of exempt facilities revenue bonds, the
net proceeds of which were used to finance part of the costs associated with Amtrak’ s
construction of a frequency converter facility (the “Facility”). The first series (Series A) for
$110.8 million was issued in February 2001, at a $0.8 million discount, netting $110.0 million.
The second series (Series B) for $45.0 million was issued in April 2001, at par. Amtrak procured
the bond proceeds of each issue through a structured financing arrangement with PEDFA. Under
this arrangement, Amtrak leased the Facility to PEDFA until November 2041, under a long-term
ground lease, in exchange for the total net proceeds. Simultaneously, Amtrak leased the Facility
back from PEDFA through June 2033, with an option to extend this term through
November 2041. PEDFA also has the right to extend Amtrak’ s leaseback term through
November 2041.