U-Haul 2007 Annual Report Download - page 88

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AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Various subsidiaries of Amerco Real Estate Company and U-Haul International, Inc. are borrowers under a mortgage
backed loan. The lender is Lehman Brothers Bank, FSB and the loan balance as of March 31, 2007 is $23.1 million. The
loan was entered into on October 6, 2005 at a rate of 5.72%. 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 October 11, 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.
Construction / Working Capital Loans
Amerco Real Estate Company and a subsidiary of U-Haul International, Inc. entered into a revolving credit facility with
MidFirst Bank effective June 29, 2006. The maximum amount that can be drawn at any one time is $40.0 million. The
final maturity is June 2009. As of March 31, 2007 the Company had not drawn on this line.
The Construction Loan requires monthly interest only payments with the principal and any accrued and unpaid interest
due at maturity. The loan can be used to develop new or existing storage properties. The loan will be secured by the
properties being constructed. The interest rate, per the provision of the Loan Agreement, is the applicable LIBOR plus a
margin of 1.50%. The default provisions of the loan include non-payment of principal or interest and other standard
reporting and change-in-control covenants.
Amerco Real Estate Company is a borrower under an asset backed facility. The lender is JP Morgan Chase Bank, and
the facility is in the amount of $20.0 million. The loan was entered into on November 27, 2006 and is secured by certain
properties owned by the borrower. The interest rate, per the provision of the Loan Agreement, is the applicable LIBOR plus
a margin of 1.50%. The loan agreement provides for revolving loans, subject to the terms of the loan agreement with final
maturity in November 2008, subject to a one year extension. The loan requires monthly interest payments with the unpaid
loan balance and accrued and unpaid interest due at maturity. The default provisions of the loan include non-payment of
principal or interest and other standard reporting and change-in-control covenants. At March 31, 2007 the facility was fully
available.
Fleet Loans
Rental Truck Amortizing Loans
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 Company’ s outstanding balance at March 31, 2007 was $118.2 million and
the final maturity is April 2012.
The Merrill Lynch Rental Truck Amortizing Loan requires monthly principal and interest payments, with the unpaid
loan balance and accrued and unpaid interest due at maturity. The Merrill Lynch Rental Truck Amortizing Loan was used
to purchase new trucks. 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, 2007 the applicable LIBOR was 5.32% and the applicable margin was 1.75%,
the sum of which was 7.07%. The interest rate is hedged with an interest rate swap fixing the rate at 6.81% based on the
current margin. The default provisions of the loan include non-payment of principal or interest and other standard reporting
and change-in-control covenants.
U-Haul International, Inc. and several of its subsidiaries are borrowers under an amortizing term loan. The lender is
BTMU Capital Corporation (“BTMU”). The Company’ s outstanding balance at March 31, 2007 was $133.8 million, and
the final maturity is November 2012.
The BTMU Rental Truck Amortizing Loan requires monthly principal and interest payments, with the unpaid loan
balance and accrued and unpaid interest due at maturity. The BTMU Rental Truck Amortizing Loan was used to purchase
new trucks. The interest rate, per the provision of the Loan Agreement, is the applicable LIBOR plus a margin between
1.25% and 1.75%. At March 31, 2007 the applicable LIBOR was 5.32% and the applicable margin was 1.75%, the sum of
which was 7.07%. The interest rate is hedged with an interest rate swap fixing the rate at 7.32% based on the current
margin. AMERCO 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.
F-23