Amtrak 2014 Annual Report Download - page 35

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1509-1694994 27
6. Mortgages and Debt (continued)
Letters of Credit
The Company has an unsecured commercial letter of credit of $2.5 million that supports the
issuance of auto fleet insurance. As of September 30, 2014 and 2013, there were no draws
against this letter of credit.
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, 2014 and 2013 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
$116.7 million and $139.6 million as of September 30, 2014 and 2013, respectively. The
mortgage loan is guaranteed by Amtrak. 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, 2014 and 2013, the
balance of such debt was $69.1 million and $75.6 million, respectively. Amtrak’ s obligations are
collateralized by a pledge of Amtrak’ s interests in the maintenance facilities.