U-Haul 2008 Annual Report Download - page 76

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AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Note 9: Borrowings
Long-Term Debt
Long-term debt was as follows:
2008 Rate (a) Maturities 2008 2007
Real estate loan (amortizing term) 6.93% 2018 $ 285,000 $ 295,000
Real estate loan (revolving credit) 4.86% 2018 100,000 -
Senior mortgages 5.19% - 5.75% 2009-2015 511,818 521,332
Construction loan (revolving credit) 4.61% 2009 30,783 -
Working capital loan (revolving credit) - 2009 - -
Fleet loans (amortizing term) 6.11% - 7.42% 2012-2014 288,806 364,833
Fleet loan (securitization) 5.40% - 5.56% 2010-2014 288,270 -
Total AMERCO notes and loans payable $ 1,504,677 $ 1,181,165
(a) Interest rate as of March 31, 2008, including the effect of applicable hedging instruments
(In thousands)
March 31,
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. The loan has a final maturity date of August 2018 and the loan is comprised of a term loan facility with initial
availability of $300.0 million and a revolving credit facility with an availability of $200.0 million. As of March 31, 2008,
the outstanding balance on the Real Estate Loan was $285.0 million and $100.0 million drawn down on the revolving credit
facility. U-Haul International, Inc. is a guarantor of this loan.
The amortizing term portion of the Real Estate Loan requires monthly principal and interest payments, with the unpaid
loan balance and accrued and unpaid interest due at maturity. The revolving credit portion of the Real Estate Loan requires
monthly interest payments when drawn, with the unpaid loan balance and any accrued and unpaid interest due at maturity.
The Real Estate Loan is secured by various properties owned by the borrowers.
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, 2008, the applicable LIBOR was
3.06% and the applicable margin was 1.50%, the sum of which was 4.56%. The applicable margin ranges from 1.50% to
2.00%. The rate on the term facility portion of the 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 provisions of the amended Loan agreement, is the applicable
LIBOR plus the applicable margin. At March 31, 2008, the applicable LIBOR was 3.06% and the applicable margin was
1.80%, the sum of which was 4.86%.
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.
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