U-Haul 2008 Annual Report Download - page 77

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AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Senior Mortgages
Various subsidiaries of Amerco Real Estate Company and U-Haul International, Inc. are borrowers under certain senior
mortgages. These senior mortgages loan balances as of March 31, 2008 were in the aggregate amount of $453.4 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
$58.4 million as of March 31, 2008. Maturity dates begin in 2009 with the majority maturing in 2015. Rates for these loans
range from 5.19% to 5.75%. 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.
Construction / Working Capital Loans
Amerco Real Estate Company and a subsidiary of U-Haul International, Inc. entered into a revolving credit construction
loan effective June 29, 2006. The maximum amount that can be drawn at any one time is $40.0 million. The final maturity
is June 2009. As of March 31, 2008, the outstanding balance was $30.8 million.
The Construction Loan requires monthly interest only payments with the principal and any accrued and unpaid interest
due at maturity. The loan can be used to develop new or existing storage properties. The loan is secured by the properties
being constructed. The interest rate, per the provision of the Loan Agreement, is the applicable LIBOR plus a margin of
1.50%. At March 31, 2008, the applicable LIBOR was 3.11% and the margin was 1.50%, the sum of which was 4.61%. U-
Haul International, Inc. is a guarantor 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.
Amerco Real Estate Company is a borrower under an asset backed working capital loan. The facility was originally in the
amount of $20.0 million. The loan is secured by certain properties owned by the borrower. On September 5, 2007, the loan
was amended to increase the availability to $35.0 million. The interest rate, per the provision of the Loan Agreement, is the
applicable LIBOR plus a margin of 1.50%. The loan agreement provides for revolving loans, subject to the terms of the
loan agreement with final maturity in November 2009. The 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. At March 31, 2008, the facility was fully available.
Fleet Loans
Rental Truck Amortizing Loans
U-Haul International, Inc. and several of its subsidiaries are borrowers under amortizing term loans. The loan balances as
of March 31, 2008 were in the aggregate amount of $288.8 million with final maturities between April 2012 and March
2014.
The Amortizing Loans require monthly principal and interest payments, with the unpaid loan balance and accrued and
unpaid interest due at maturity. These loans were used to purchase new trucks. The interest rates, per the provision of the
Loan Agreements, are the applicable LIBOR plus a margin between 0.90% and 1.75%. At March 31, 2008, the applicable
LIBOR was 3.06% and applicable margins were between 1.125% and 1.75%, the sum of which was between 4.185% and
4.81%. The interest rates are hedged with interest rate swaps fixing the rates between 6.11% and 7.42% based on current
margins.
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