Amtrak 2013 Annual Report Download - page 76

National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1411-1359280 37
7. Mortgages and Debt (continued)
Equipment Loans
In 2010 and 2009, Amtrak exercised early buyout options to purchase 40 locomotives and eight
superliner passenger cars under capital leases. Amtrak paid off the equity and assumed the debt
of the capital leases as new loans from the lenders for $32.0 million. The loans are payable in
semiannual payments through maturity with the final loan payments due from January 2012
through July 2014. The interest rates vary from 7.37% to 9.61%. The outstanding balance due on
these loans was $11.5 million on September 30, 2013 and $20.8 million on September 30, 2012.
30th St. PEDFA Garage Revenue Bonds
On January 7, 2003, PEDFA issued $50.0 million of Revenue Bonds (the “2003 PEDFA Garage
Bonds”) for the purpose of financing the construction and other related costs of a parking garage
located at the 30th Street Station in Philadelphia, Pennsylvania. The bonds had multiple
maturities ending on June 1, 2033. The bonds were issued at a $0.6 million discount and Amtrak
incurred $0.5 million in underwriter’ s fees that were being amortized on a straight-line basis over
the maturity of the bonds. The bonds bore interest, by individual maturities, at fixed rates ranging
from 4.50% to 5.875%. On December 15, 2002, Amtrak entered into a “Pledge and Security
Agreement” (the “Pledge”) with PEDFA under which Amtrak guaranteed the payment of the
principal and interest on the 2003 PEDFA Garage Bonds.
On November 2, 2012, at Amtrak’ s request, PEDFA issued $42.0 million of Revenue Bonds
(“the 2012 PEDFA Garage Bonds”) in order to refinance the 2003 PEDFA Garage Bonds. The
$42.0 million proceeds together with $4.2 million released from the then-existing restricted funds
for the 2003 PEDFA Garage Bonds were used to (i) refund the 2003 PEDFA Garage Bonds
outstanding at that time in the amount of $43.6 million; (ii) pay accrued and unpaid interest on
the 2003 PEDFA Garage Bonds of $1.1 million; and (iii) pay a redemption premium of
$0.9 million and issuance costs of $0.6 million. The issuance costs are being amortized on a
straight-line basis over the maturity of the 2012 PEDFA Garage Bonds. The Company incurred a
loss of $5.7 million composed of $4.4 million of write off of deferred financing costs related to
the original issuance of the garage bonds, $0.9 million of redemption premium, and $0.4 million
of write-off of unamortized discount. The loss is recognized in the Consolidated Statements of
Operations as “Loss on early extinguishment of debt”. The new bonds have 20 year lives, with
mandatory purchase by Amtrak at par plus accrued interest at the end of the seventh year unless
an extension agreement is executed. Interest accrues at a variable one month LIBOR rate. The
principal outstanding under the 2012 PEDFA Garage Bonds was $40.6 million on September 30,
2013 and $43.6 million on September 30, 2012.