U-Haul 2005 Annual Report Download - page 94

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93 I AMERCO ANNUAL REPORT
Amerco and Consolidated Entities
Notes to Consolidated Financial Statements, continued
Note 22: Subsequent Events
Refinancing
On฀ May฀ 9฀ and฀ May฀ 12,฀ 2005฀ the฀ Company฀ entered฀
into฀ agreements฀ to฀ re-finance฀ its฀ capital฀ structure฀ and฀
gave฀ notices฀ to฀ its฀ current฀ lenders฀ of฀ its฀ plans฀ for฀ early฀
redemption฀of฀the฀Company’s฀existing฀notes฀and฀loans.
The฀ structure฀ consists฀ of฀ three฀ asset-backed฀ facilities฀
including฀ a฀ $240฀ million฀ senior฀ mortgage฀ funded฀ by฀
Merrill฀ Lynch,฀ a฀ $240฀ million฀ senior฀ mortgage฀ funded฀
by฀ Morgan฀ Stanley฀ and฀ a฀ $465฀ million฀ real฀ estate฀ loan฀
funded฀by฀Merrill฀Lynch.฀The฀new฀financing฀was฀funded฀
on฀June฀8,฀2005.
The฀Company฀will฀to฀incur฀a฀one-time฀ pre-tax฀charge฀of฀
approximately฀$34฀million฀in฀the฀first฀quarter฀of฀fiscal฀2006฀
associated฀with฀the฀early฀payment฀of฀the฀existing฀loans.
Preferred Stock Dividends
On฀ May฀4,฀2005,฀the฀ Board฀ of฀Directors฀ of฀AMERCO,฀
the฀ holding฀ company฀ for฀ U-Haul฀ International,฀ Inc.,฀
and฀ other฀ companies,฀ declared฀ a฀ regular฀ quarterly฀ cash฀
dividend฀of฀$0.53125฀per฀share฀on฀the฀Company’s฀Series฀
A,฀8฀1/2฀percent฀Preferred฀Stock.฀The฀dividend฀was฀paid฀
June฀1,฀2005฀to฀holders฀of฀record฀on฀May฀15,฀2005.
Abatement of State of Arizona Department of Insurance
Order for Supervision
On฀ June฀ 9,฀ 2005,฀ the฀ State฀ of฀ Arizona฀ Department฀ of฀
Insurance฀abated฀its฀May฀20,฀2003฀Order฀for฀Supervison.฀
The฀May฀20,฀2003฀Order฀required฀that฀RepWest฀eliminate฀
its฀credit฀exposure฀with฀AMERCO฀and฀its฀affiliates฀and฀
that฀ RepWest฀ possess฀ sufficient฀ surplus฀ to฀ comply฀ with฀
Arizona฀law.฀These฀requirements฀have฀been฀met฀and฀the฀
Order฀was฀abated฀on฀June฀9,฀2005.