U-Haul 2008 Annual Report Download - page 78

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AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
AMERCO and U-Haul International, Inc. are guarantors for certain of these loans. The default provisions of these loans
include non-payment of principal or interest and other standard reporting and change-in-control covenants.
Rental Truck Securitizations
U-Haul S Fleet and its subsidiaries (collectively, “USF”) issued a $217.0 million asset-backed note (“Box-Truck Note”)
and an $86.6 million asset-backed note (“Cargo Van/Pickup Note”) on June 1, 2007. USF is a bankruptcy-remote special
purpose entity wholly-owned by U-Haul International, Inc. The net proceeds from these securitized transactions were used
to finance new box truck, cargo van and pickup truck purchases throughout fiscal 2008. U.S. Bank, NA acts as the trustee
for this securitization.
The Box Truck Note has a fixed interest rate of 5.56% with an estimated final maturity of February 2014. At March 31,
2008 the outstanding balance was $201.7 million. The note is secured by the box trucks that were purchased and operating
cash flows associated with their operation.
The Cargo Van/Pickup Note has a fixed interest rate of 5.40% with an estimated final maturity of May 2010. At March
31, 2008 the outstanding balance was $86.6 million. The note is secured by the cargo vans and pickup trucks that were
purchased and the operating cash flows associated with their operation.
The Box Truck Note and Cargo Van/Pickup Note have the benefit of financial guaranty insurance policies through
Ambac Assurance Corporation. These policies guarantee the timely payment of interest on and the ultimate payment of the
principal of the notes.
The Box Truck Note and the Cargo Van/Pickup Note are subject to certain covenants with respect to liens, additional
indebtedness of the special purpose entities, the disposition of assets and other customary covenants of bankruptcy-remote
special purpose entities. The default provisions of the notes include non-payment of principal or interest and other standard
reporting and change in control covenants.
Annual Maturities of AMERCO Consolidated Notes and Loans Payable
The annual maturities of AMERCO consolidated long-term debt as of March 31, 2008 for the next five years and
thereafter is as follows:
2009 2010 2011 2012 2013 Thereafter
Notes payable, secured $ 108,753 $ 117,098 $ 153,311 $ 90,662 $ 120,043 $ 914,810
March 31,
(In thousands)
F-21