U-Haul 2011 Annual Report Download - page 75

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AMERCO AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The interest rate for the amortizing term portion, per the provisions of the amended loan agreement, is the
applicable London Inter-Bank Offer Rate (“LIBOR”) plus the applicable margin. At March 31, 2011, the
applicable LIBOR was 0.26% and the applicable margin was 1.50%, the sum of which was 1.76%. The rate on
the term facility portion of the Real Estate Loan is hedged with an interest rate swap fixing the rate at 6.93%
based on current margin.
The interest rate for the revolving credit facility, per the provision of the amended loan agreement, is the
applicable LIBOR plus the applicable margin. The margin ranges from 1.50% to 2.00%.
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.
Amerco Real Estate Company and a subsidiary of U-Haul International, Inc. entered into a revolving credit
construction loan effective June 29, 2006. This loan was modified and extended on June 25, 2010. The loan is
comprised of a term loan facility and a revolving credit facility with combined availability of $20.0 million and a
final maturity of June 2011. As of March 31, 2011, the outstanding balance was $11.2 million.
This Real Estate Loan requires monthly principal and interest payments with the unpaid principal and any
accrued and unpaid interest due at maturity. The interest rate, per the provision of this loan agreement, is the
applicable LIBOR plus a margin of 3.00%. At March 31, 2011, the applicable LIBOR floor was 2.00% and the
margin was 3.00%, the sum of which was 5.00%. U-Haul International, Inc. and AMERCO are guarantors of this
loan. The default provisions of the loan include non-payment of principal or interest and other standard reporting
and change-in-control covenants.
Senior Mortgages
Various subsidiaries of Amerco Real Estate Company and U-Haul International, Inc. are borrowers under
certain senior mortgages. These senior mortgage loan balances as of March 31, 2011 were in the aggregate
amount of $420.9 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.
These senior mortgages are secured by certain properties owned by the borrowers. The interest rates, per the
provisions of these senior mortgages, are 5.68% and 5.52% per annum. Amerco Real Estate Company and
U-Haul International, Inc. have provided limited guarantees of these senior mortgages. The default provisions of
these 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.
Various subsidiaries of the Company are borrowers under the mortgage backed loans that we also classify
as senior mortgages. These loans are secured by certain properties owned by the borrowers. The loan balance
of these notes totals $55.9 million as of March 31, 2011. These loans mature in 2015 and 2016. Interest rates
for these loans range from 5.47% to 6.13%. The loans require monthly principal and interest payments with the
balances due upon maturity. The default provisions of the loans 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.
Working Capital Loans
Amerco Real Estate Company is a borrower under an asset backed working capital loan. The maximum
amount that can be drawn at any one time is $25.0 million. At March 31, 2011, the Company had the full $25.0
million available to be drawn. This loan is secured by certain properties owned by the borrower. This loan
agreement provides for revolving loans, subject to the terms of the loan agreement with final maturity in
November 2012. This loan requires monthly interest payments with the unpaid loan balance and accrued and
unpaid interest due at maturity. U-Haul International, Inc. and AMERCO are the guarantors of this loan. The
default provisions of the loan include non-payment of principal or interest and other standard reporting and
change-in-control covenants. The interest rate, per the provision of this loan agreement, is the applicable LIBOR
plus a margin of 1.50%.
F-19