U-Haul 2007 Annual Report Download - page 87

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AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Real Estate Backed Loans
Real Estate Loan
Amerco Real Estate Company and certain of its subsidiaries and U-Haul Company of Florida are borrowers under a
Real Estate Loan. The lender is Merrill Lynch Commercial Finance Corp. The original amount of the Real Estate Loan was
$465.0 million with an original maturity date of June 10, 2010. On August 18, 2006, the loan was amended to increase the
availability to $500.0 million and extend the final maturity date to August 2018. The loan is comprised of a term loan
facility with initial availability of $300.0 million and a revolving credit facility with an availability of $200.0 million. As of
March 31, 2007 the outstanding balance on the Real Estate Loan was $295.0 million, with no portion of the revolver drawn
down. On the date of the amendment, the Company expensed $7.0 million of deferred charges associated with the initial
loan. U-Haul International, Inc. is a guarantor of this loan.
The amortizing term portion of the Real Estate Loan requires monthly principal and interest payments, with the unpaid
loan balance and accrued and unpaid interest due at maturity. The revolving credit portion of the Real Estate Loan requires
monthly interest payments when drawn, with the unpaid loan balance and any accrued and unpaid interest due at maturity.
The Real Estate Loan is secured by various properties owned by the borrowers.
The interest rate, per the provisions of the amended Loan Agreement, is the applicable London Inter-Bank Offer Rate
(“LIBOR”) plus the applicable margin. At March 31, 2007 the applicable LIBOR was 5.32% and the applicable margin was
1.50%, the sum of which was 6.82%. The applicable margin ranges from 1.50% to 2.00%. The rate on the term facility
portion of the loan is hedged with an interest rate swap fixing the rate at 6.93% based on current margin.
The default provisions of the Real Estate 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.
Senior Mortgages
Various subsidiaries of Amerco Real Estate Company and U-Haul International, Inc. are borrowers under the Senior
Mortgages. The lenders for the Senior Mortgages are Merrill Lynch Mortgage Lending, Inc. and Morgan Stanley Mortgage
Capital, Inc. The Senior Mortgages loan balances as of March 31, 2007 are in the aggregate amount of $465.2 million and
are due July 2015. The Senior Mortgages require average monthly principal and interest payments of $3.0 million with the
unpaid loan balance and accrued and unpaid interest due at maturity. The Senior Mortgages are secured by certain
properties owned by the borrowers. The interest rates, per the provisions of the Senior Mortgages, are 5.68% per annum for
the Merrill Lynch Mortgage Lending Agreement and 5.52% per annum for the Morgan Stanley Mortgage Capital
Agreement. The default provisions of the Senior Mortgages 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.
U-Haul Company of Canada is the borrower under a mortgage backed loan. The loan was arranged by Merrill Lynch
Canada and the loan balance as of March 31, 2007 is $9.6 million ($11.0 million Canadian currency). The loan is secured
by certain properties owned by the borrower. The loan was entered into on June 29, 2005 at a rate of 5.75%. The loan
requires monthly principal and interest payments with the unpaid loan balance and accrued and unpaid interest due at
maturity. It has a twenty-five year amortization with a maturity of July 1, 2015. 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.
A subsidiary of Amerco Real Estate Company is a borrower under a mortgage backed loan. The lender is Morgan
Stanley Mortgage Capital, Inc. and the loan balance as of March 31, 2007 is $23.4 million. The loan was entered into on
August 17, 2005 at a rate of 5.47%. The loan is secured by certain properties owned by the borrower. The loan requires
monthly principal and interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. It
has a twenty-five year amortization with a maturity of September 17, 2015. 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.
F-22