U-Haul 2004 Annual Report Download - page 79

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AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
On June 30, 2003, the Company's insurance subsidiaries exchanged their investments in Private Mini
Storage Realty, L.P. for other real property owned by SAC Holdings. The exchanges were non-monetary and
were recorded on the basis of the book value of the assets exchanged. The Company's insurance subsidiaries
wrote their equity investment in Private Mini Storage Realty, L.P. to zero to reÖect the equity pick up losses
during the Ñrst quarter of 2003.
Note 9: Borrowings
Long-Term Debt
Long-term debt at Ñscal year-ends was as follows:
March 31,
2004 2003
(In thousands)
Revolving credit facility, senior secured Ñrst lien ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $164,051 $ Ì
Senior amortizing notes, secured, Ñrst lien, due 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 350,000 Ì
Senior notes, secured second lien, 9.0% interest rate, due 2009 ÏÏÏÏÏÏÏÏÏÏ 200,000 Ì
Senior subordinated notes, secured, 12.0% interest rate, due 2011 ÏÏÏÏÏÏÏ 148,646 Ì
Revolving credit facility, secured by intercompany notes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 205,000
Senior notes, secured, Series A, due 2012 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 95,000
Senior notes, secured, Series B, due 2007ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 5,000
Senior notes, unsecured, 7.85% interest rate, due 2003 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 175,000
Senior notes, unsecured, 8.80% interest rates, due 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 200,000
Medium-term notes, payable, unsecured, 7.23% to 8.08% interest rate due
through 2027ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 109,500
Notes payable under Bond Backed Asset Trust, unsecured, 7.14% interest
rates, due through 2032ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 100,000
Debt related to BBAT option termination ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 26,550
Loan against cash surrender value of life insurance policiesÏÏÏÏÏÏÏÏÏÏÏÏÏ 17,822 18,229
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 5,784
Total AMERCO notes and loans payableÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $880,519 $940,063
At March 31, 2003 AMERCO was in default on substantially all of its borrowings due to cross default
provisions in the debt agreement. As part of the bankruptcy restructuring on March 15, 2004 most of the prior
year debt was reÑnanced with the new debt, see description below. As part of the restructuring the Company
has incurred professional fees of $44.1 million and $6.6 million in Ñscal 2004 and 2003.
First Lien Senior Secured Notes
We entered into a First Lien Senior Secured credit facility, due 2009 in the amount of $550 million, with
a banking syndicate led and arranged by Wells Fargo Foothill, a part of Wells Fargo & Company (the ""Senior
Secured Facility''). These senior notes consist of two components, a $200 million revolving credit facility
(including a $50 million letter of credit sub-facility) and a $350 million amortizing term loan. The proceeds
we received from these senior notes were used primarily to satisfy the claims of the creditors in our Chapter 11
proceeding and to pay related fees and expenses incurred in connection therewith.
The $350 million amortizing term loan requires monthly principal payments of $291,667 and periodic
interest payments with the balance due on maturity in 2009. The interest rate per the provisions of the term
loan agreement is deÑned as the 3-month London Inter Bank OÅer Rate (""LIBOR''), plus 4.0% applicable
F-18