U-Haul 2016 Annual Report Download - page 76

AMERCO AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
F-20
Various subsidiaries of U-Haul International, Inc. entered into a revolving fleet loan for $100 million,
which can be increased to a maximum of $125 million. This loan was amended in February 2016
pursuant to which the maturity was extended to March 2020. The interest rate, per the provision of the
Loan Agreement, is the applicable LIBOR plus the applicable margin. At March 31, 2016, the applicable
LIBOR was 0.44% and the margin was 1.15%, the sum of which was 1.59%. Only interest is paid during
the first three years of the loan with principal due monthly over the last nine months. As of March 31,
2016, the outstanding balance was $100.0 million.
Various subsidiaries of U-Haul International, Inc. entered into a revolving fleet loan for $70 million. The
loan matures in May 2019. This agreement contains an option to extend the maturity through January
2020. At March 31, 2016, the applicable LIBOR was 0.43% and the margin was 1.85%, the sum of which
was 2.28%. Only interest is paid during the first five years of the loan with principal due upon maturity. As
of March 31, 2016, the outstanding balance was $65.0 million.
Various subsidiaries of U-Haul International, Inc. entered into a revolving fleet loan for $125 million.
The loan matures in November 2021. The interest rate, per the provision of the Loan Agreement, is the
applicable LIBOR plus the applicable margin. At March 31, 2016, the applicable LIBOR was 0.44% and
the margin was 1.15%, the sum of which was 1.59%. Only interest is paid during the first five years of the
loan with principal due monthly over the last nine months. As of March 31, 2016, the outstanding balance
was $125.0 million.
Capital Leases
We regularly enter into capital leases for new equipment with the terms of the leases between 5 and 7
years. During fiscal 2016, we entered into $241.7 million of capial leases. At March 31, 2016, the balance
of our capital leases was $672.8 million. The net book value of the corresponding capitalized assets was
$900.6 million at March 31, 2016.
Other Obligations
In February 2011, the Company and U.S. Bank, NA (the “Trustee”) entered into the U-Haul Investors
Club Indenture. The Company and the Trustee entered into this indenture to provide for the issuance of
notes by us directly to investors over our proprietary website, uhaulinvestorsclub.com (“U-Notes”). The U-
Notes are secured by various types of collateral including rental equipment and real estate. U-Notes are
issued in smaller series that vary as to principal amount, interest rate and maturity. U-Notes are
obligations of the Company and secured by the associated collateral; they are not guaranteed by any of
the Company’s affiliates or subsidiaries.
At March 31, 2016, the aggregate outstanding principal balance of the U-Notes issued was $65.8
million of which $5.6 million is held by our insurance subsidiaries and eliminated in consolidation. Interest
rates range between 3.00% and 8.00% and maturity dates range between 2016 and 2045.
Our Life Insurance subsidiary is a member of the FHLB and as such has a deposit with the FHLB. As
of December 31, 2015, they have a deposit of $30.0 million which carried a rate of 0.39%. The rate is
calculated daily based upon a spread of the overnight FED funds benchmark and is payable monthly. The
deposit does not have a scheduled maturity date. The balance of the deposit is included within the
balance of Liabilities from investment contracts on the consolidated balance sheet.
Annual Maturities of Notes, Loans and Leases Payable
The annual maturities of long-term debt as of March 31, 2016 for the next five years and thereafter are
as follows:
Year Ended March 31,
2017
2018
2019
2020
2021
Thereafter
(In thousands)
Notes, loans and
leases payable,
secured
$
353,807
$
348,984
$
297,534
$
416,616
$
155,403
$
1,116,414