U-Haul 2016 Annual Report Download - page 74

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AMERCO AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
F-18
Note 9. Borrowings
Long-Term Debt
Long-term debt was as follows:
March 31,
2016 Rate (a)
Maturities
2016
2015
(In thousands)
Real estate loan (amortizing term)
6.93%
2023
$
205,000
$
240,000
Senior mortgages
2.44% - 5.50%
2016 - 2038
1,121,897
717,512
Working capital loan (revolving credit)
-
2018
–
–
Fleet loans (amortizing term)
1.95% - 4.76%
2016 - 2022
218,998
202,784
Fleet loans (term)
3.52% - 3.53%
2016
–
115,000
Fleet loan (securitization)
4.90%
2017
62,838
75,846
Fleet loans (revolving credit)
1.59% - 2.28%
2018 - 2021
347,000
190,000
Capital leases (rental equipment)
2.18% - 7.75%
2016 - 2023
672,825
602,470
Other obligations
3.00% - 8.00%
2016 - 2045
60,200
47,257
Total notes, loans and leases payable
$
2,688,758
$
2,190,869
(a) Interest rate as of March 31, 2016, including the effect of applicable hedging instruments
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. As of March 31, 2016, the outstanding balance on the Real Estate
Loan was $205.0 million. U-Haul International, Inc. is a guarantor of this loan. The Real Estate Loan
requires monthly principal and interest payments, with the unpaid loan balance and accrued and unpaid
interest due at maturity. The Real Estate Loan is secured by various properties owned by the borrowers.
The final maturity of the term loan is April 2023.
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, 2016, the applicable LIBOR was
0.45% and the applicable margin was 1.50%, the sum of which was 1.95%. The rate on the Real Estate
Loan is hedged with an interest rate swap fixing the rate at 6.93% based on current margin. The interest
rate swap expires in August 2018, after which date the remaining balance will incur interest at a rate of
LIBOR plus a margin of 1.50%. 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 certain senior mortgages. These senior mortgage loan balances as of March 31, 2016 were in the
aggregate amount of $1,121.9 million and mature between 2016 and 2038. The senior mortgages require
monthly principal and interest payments 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
fixed interest rates, per the provisions of the senior mortgages, range between 4.20% and 5.50%. Certain
senior mortgages have an anticipated repayment date and a maturity date. If these senior mortgages are
not repaid by the anticipated repayment date the interest rate on these mortgages would increase from
the current fixed rate. We are using the anticipated repayment date for our maturity schedule.
Additionally, $136.6 million of these loans have variable interest rates comprised of applicable LIBOR
base rate of 0.44% plus margins between 2.00% and 2.50%, the sum of which was between 2.44% and
2.94%. Amerco Real Estate Company and U-Haul International, Inc. have provided limited guarantees of
the senior mortgages. 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.