U-Haul 2009 Annual Report Download - page 76

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AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
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
$53.0 million as of March 31, 2009. These loans mature in 2015. Rates for these loans range from 5.47% 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, 2009, the outstanding balance was $37.3 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, 2009, the applicable LIBOR was 0.50% and the margin was 1.50%, the sum of which was 2.00%. 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 maximum amount that can
be drawn at any one time is $35.0 million. The loan is secured by certain properties owned by the borrower. 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, 2009, the Company had
utilized $25.0 million of availability as collateral for a letter of credit, leaving the Company with $10.0 million of available
credit. In April 2009, the letter of credit was terminated and availability under this facility was increased by $25.0 million.
In May 2009, this facility was renewed for another year.
Fleet Loans
Rental Truck Amortizing Loans
U-Haul International, Inc. and several of its subsidiaries are borrowers under amortizing term loans. The loans balances
as of March 31, 2009 were $299.5 million with the final maturities between April 2012 and April 2016.
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 2.63%. At March 31, 2009, the applicable
LIBOR was 0.52% to 0.56% and applicable margins were between 1.125% and 2.63%. The interest rates are hedged with
interest rate swaps fixing the rates between 4.87% and 7.42% based on current margins.
AMERCO and U-Haul International, Inc. are guarantors 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,
2009, the outstanding balance was $170.1 million. The note is secured by the box trucks that were purchased and operating
cash flows associated with their operation.
F-21