U-Haul 2006 Annual Report Download - page 29

AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Mezzanine Loan
Various subsidiaries of Amerco Real Estate Company and U-Haul International, Inc. are borrowers under the CMBS
Mezzanine Loan. The loan was originated by Morgan Stanley Mortgage Capital, Inc. and is in the amount of $19.4 million.
The loan was entered into on August 12, 2005. The interest rate per the provision of the loan agreement is the applicable
LIBOR plus a margin of 5.65%. At March 31, 2006 the applicable LIBOR was 4.63%. The loan requires monthly
principal and interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. It has a ten
year amortization with a maturity of September 1, 2007. Amerco Real Estate Company and U-Haul International, Inc. are
guarantors of the loan. The default provisions of the loan include non-payment of principal or interest and other standard
reporting and change-in-control covenants. There are limited restrictions regarding our use of the funds. On June 2, 2006,
we notified the lender of our intent to prepay the entire loan in full on August 30, 2006. There are no prepayment fees or
penalties associated with the planned prepayment of this loan.
Fleet Loans
Rental Truck Amortizing Loan
U-Haul International, Inc. and several of its subsidiaries are borrowers under an amortizing term loan. The lender is
Merrill Lynch Commercial Finance Corp. The maximum amount that can be borrowed is $150.0 million and is due six
years following the last draw down. As of March 31, 2006 the Company had drawn $86.2 million and funded the
remaining $63.9 million in April 2006. The Company’ s outstanding balance at March 31, 2006 was $82.3 million due to
payments made of $3.9 million during fiscal 2006.
The Rental Truck Amortizing Loan requires monthly principal and interest payments, with the unpaid loan balance and
accrued unpaid interest due at maturity. The Rental Truck Amortizing Loan can be used to purchase new trucks between
the months of November 2005 through June 2006. The interest rate, per the provision of the Loan Agreement, is the
applicable LIBOR plus a margin between 1.50% and 1.75%. At March 31, 2006 the applicable LIBOR was 4.70% and the
applicable margin was 1.75%. The default provisions of the loan include non-payment of principal or interest and other
standard reporting and change-in-control covenants.
Revolving Credit Agreement
U-Haul International, Inc. and several of its subsidiaries are borrowers under a revolving credit facility. The lender is
Merrill Lynch Commercial Finance Corp. The maximum amount that can be drawn is $150.0 million and is due July 2010.
As of March 31, 2006 the Company had $60.0 million available under this revolving credit facility.
The Revolving Credit Agreement requires monthly interest payments, with the unpaid loan balance and accrued unpaid
interest due at maturity. The Revolving Credit Agreement is secured by various older rental trucks. The maximum amount
that we can draw down under the Revolving Credit Agreement reduces by $50.0 million after the third year and another
$50.0 million after the fourth year. The interest rate, per the provision of the Loan Agreement, is the applicable LIBOR
plus a margin of 1.75%. At March 31, 2006 the applicable LIBOR was 4.70%. The default provisions of the loan include
non-payment of principal or interest and other standard reporting and change-in-control covenants.
Annual Maturities of AMERCO consolidated Notes and Loans Payable
The annual maturity of AMERCO consolidated long-term debt as of March 31, 2006 for the next five years and
thereafter is as follows:
2007 2008 2009 2010 2011 Thereafter
Notes payable, secured $ 30,239 $ 48,853 $ 32,674 $ 74,717 $ 319,007 $ 460,144
March 31,
(In thousands)
F-22