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Borrowings | 3 Months Ended
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Jun. 30, 2015
Debt Disclosure [Abstract] |
4. Borrowings | Long-Term Debt Long-term debt was as follows:
|  |  |  |  | June 30, |  | March 31,
| 2016 Rate (a) |  | Maturities |  | 2015 |  | 2015
|  |  |  |  | (Unaudited) |  |
|  |  |  |  | (In thousands)
Real estate loan (amortizing term) | 1.69% - 6.93% |  | 2015 - 2023 | $ | 237,500 | $ | 240,000
Senior mortgages | 2.19% - 5.75% |  | 2015 - 2038 |  | 694,118 |  | 717,512
Working capital loan (revolving credit) | - |  | 2016 |  | – |  | –
Fleet loans (amortizing term) | 1.95% - 5.57% |  | 2015 - 2022 |  | 323,236 |  | 317,784
Fleet loan (securitization) | 4.90% |  | 2017 |  | 72,591 |  | 75,846
Fleet loans (revolving credit) | 1.18% - 2.03% |  | 2017 - 2019 |  | 185,000 |  | 190,000
Capital leases (rental equipment) | 2.19% - 7.84% |  | 2016 - 2022 |  | 598,747 |  | 602,470
Other obligations | 0.22% - 8.00% |  | 2015 - 2045 |  | 81,479 |  | 47,257
Total notes, loans and leases payable |  |  |  | $ | 2,192,671 | $ | 2,190,869
(a) Interest rate as of June 30, 2015, including the effect of applicable hedging instruments
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. As of June 30, 2015, the outstanding balance on the Real Estate Loan was $237.5 million. U-Haul International, Inc. is a guarantor of this loan. The Real Estate Loan requires monthly principal and interest payments, with the unpaid loan balance and accrue d and unpaid interest due at maturity. The Real Estate Loan is secured by various properties owned by the borrowers. The final maturity of the term loan is April 2023. The interest rate, per the provisions of the amended loan agreement, is the applicable London Inter-Bank Offer Rate (“LIBOR”) plus the applicable margin. At June 30, 2015, the applicable LIBOR was 0.19% and the applicable margin was 1.50%, the sum of which was 1.69% which applied to $25.0 million of the Real Estate Loan and matures Septembe r 2015, but can be paid off in full before this date. The rate on the remaining balance of $212.5 million of the Real Estate Loan is hedged with an interest rate swap fixing the rate at 6.93% based on current margin. The interest rate swap expires in Augus t 2018, after this date the remaining balance will incur interest at a rate of LIBOR plus a margin of 1.50%. The default provisions of the Real Estate Loan include non-payment of principal or interest and other standard reporting and change-in-control cove nants. There are limited restrictions regarding our use of the funds. Senior Mortgages Various subsidiaries of Amerco Real Estate Company and U-Haul International, Inc. are borrowers under certain senior mortgages. These senior mortgage loan balances as of June 30, 2015 were in the aggregate amount of $694.1 million and mature between 2015 and 2038. The senior mortgages require monthly principal and interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. The senior mo rtgages are secured by certain properties owned by the borrowers. The fixed interest rates, per the provisions of the senior mortgages, range between 4.22% and 5.75%. Additionally, $141.1 million of these loans have variable interest rates comprised of app licable LIBOR base rates between 0.18% and 0.19% plus margins between 2.00% and 2.50%, the sum of which was between 2.18% and 2.69%. Amerco Real Estate Company and U-Haul International, Inc. have provided limited guarantees of the senior mortgages. The def ault provisions of the 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. Working Capital Loans Amerco Real Estate Com pany is a borrower under an asset backed working capital loan. The maximum amount that can be drawn at any one time is $25.0 million. At June 30, 2015, the full $25.0 million was available to be drawn. This loan is secured by certain properties owned by th e borrower. This loan agreement provides for revolving loans, subject to the terms of the loan agreement. This agreement matures in April 2016. This 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. The interest rate is the applica ble LIBOR plus a margin of 1.25%. Fleet Loans Rental Truck Amortizing Loans U-Haul International, Inc. and several of its subsidiaries are borrowers under amortizing term loans. The balance of the loans as of June 30, 2015 was $208.2 million with the final maturities between July 2015 and June 2022. 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 rate s, per the provision of the Loan Agreements, are the applicable LIBOR plus the applicable margins. At June 30, 2015, the applicable LIBOR was between 0.18% and 0.19% and applicable margins were between 1.35% and 2.50%. The interest rates are hedged with in terest rate swaps fixing the rates between 2.82% and 5.57% based on current margins. Additionally, $95.6 million of these loans are carried at fixed rates ranging between 1.95% and 3.94%. 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. A subsidiary of U-Haul International, Inc. is a borrower under amortizing term loans with an aggregate balance of $115.0 million that were used to fund new truck acquisitions. The final maturity date of these notes is August 2016. The agreements contain options to extend the maturity through May 2017. These notes are secured by the purchased equipment and the cor responding operating cash flows associated with their operation. These notes have fixed interest rates between 3.52% and 3.53%. At June 30, 2015, the aggregate outstanding balance was $115.0 million. 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 2010 U-Haul S Fleet and its subsidiaries (collectively, “2010 USF”) issued a $155.0 million asset-backed note (“2010 Box Truck Note”) on October 28, 2010. 2010 USF is a bankruptcy-remote special purpose entity wholly-owned by U-Haul International, Inc. The net proceeds from the securitized transaction were used to finance new box truck purchases. U.S. Bank, NA acts as the trustee for this securitization. The 2010 Box Truck Note has a fixed interest rate of 4.90% with an expected final maturity of October 2017. At June 3 0, 2015, the outstanding balance was $72.6 million. The note is secured by the box trucks purchased and the corresponding operating cash flows associated with their operation. The 2010 Box Truck Note is subject to certain covenants with respect to liens, additional indebtedness of the special purpose entity, the disposition of assets and other customary covenants of bankruptcy-remote special purpose entities. The default provisions of this note include non-payment of principal or interest and other standar d reporting and change-in-control covenants. Rental Truck Revolvers Various subsidiaries of U-Haul International, Inc. entered into a revolving fleet loan for $75 million, which can be increased to a maximum of $225 million. The loan matures in September 2 018. The interest rate, per the provision of the Loan Agreement, is the applicable LIBOR plus the applicable margin. At June 30, 2015, the applicable LIBOR was 0.19% and the margin was 1.75%, the sum of which was 1.94%. Only interest is paid during the fir st four years of the loan with principal due monthly over the last nine months. As of June 30, 2015, the outstanding balance was $75.0 million. Various subsidiaries of U-Haul International, Inc. entered into a revolving fleet loan for $100 million, which c an be increased to a maximum of $125 million. The loan matures in October 2017. The interest rate, per the provision of the Loan Agreement, is the applicable LIBOR plus the applicable margin. At June 30, 2015, the applicable LIBOR was 0.18% and the margin was 1.00%, the sum of which was 1.18%. Only interest is paid during the first three years of the loan with principal due monthly over the last nine months. As of June 30, 2015, the outstanding balance was $76.0 million. Various subsidiaries of U-Haul Inter national, Inc. entered into a revolving fleet loan for $70 million. The loan matures in May 2019. This agreement contains an option to extend the maturity through February 2020. At June 30, 2015, the applicable LIBOR was 0.18% and the margin was 1.85%, the sum of which was 2.03%. Only interest is paid during the first five years of the loan with principal due upon maturity. As of June 30, 2015, the outstanding balance was $34.0 million. Capital Leases We regularly enter into capital leases for new equipment with the terms of the leases between 5 and 7 years. At June 30, 2015, the balance of these leases was $598.7 million. The net book value of the corresponding capitalized assets was $736.7 million at June 30, 2015. Other Obligations In February 2011, the C ompany and US Bank, National Association (the “Trustee”) entered into the U-Haul Investors Club Indenture. The Company and the Trustee entered into this indenture to provide for the issuance of notes by us directly to investors over our proprietary websi te, uhaulinvestorsclub.com (“U-Notes”). The U-Notes are secured by various types of collateral including rental equipment and real estate. U-Notes are issued in smaller series that vary as to principal amount, interest rate and maturity. U-Notes are obl igations of the Company and secured by the associated collateral; they are not guaranteed by any of the Company’s affiliates or subsidiaries. At June 30, 2015, the aggregate outstanding principal balance of the U-Notes issued was $57.9 million of which $6.4 million is held by our insurance subsidiaries and eliminated in consolidation. Interest rates range between 3.00% and 8.00% and maturity dates range between 2015 and 2045. Our Life Insurance subsidiary is a member of the Federal Home Loan Bank (“FHLB”) a nd as such has the ability to borrow under the FHLB’s securities backed credit program. As of March 31, 2015, we have borrowed $30.0 million in the form of a variable rate credit advance which carried a rate of 0.22%. The rate is calculated daily based upo n a spread of the overnight FED funds benchmark and is payable monthly. The borrowing does not have a scheduled maturity date. Annual Maturities of Notes, Loans and Leases Payable The annual maturities of long-term debt, including capital leases, as of J une 30, 2015 for the next five years and thereafter are as follows:
|  | Year Ended June 30,
|  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | Thereafter
|  | (Unaudited)
|  | (In thousands)
Notes, loans and leases payable, secured | $ | 248,670 | $ | 482,362 | $ | 317,165 | $ | 292,793 | $ | 175,023 | $ | 676,658
Interest on Borrowings Interest Expense Components of interest expense include the following:
|  | Quarter Ended June 30,
|  | 2015 |  | 2014
|  | (Unaudited)
|  | (In thousands)
Interest expense | $ | 18,542 | $ | 19,921
Capitalized interest |  | (551) |  | (167)
Amortization of transaction costs |  | 743 |  | 753
Interest expense resulting from derivatives |  | 3,366 |  | 3,641
Total interest expense |  | 22,100 |  | 24,148
Interest paid in cash, including payments related to derivative contracts, amounted to $22.0 million and $23.4 million for the first quarter of fiscal 2016 and 2015, respectively. Interest Rates Interest rates and Company borrowings were as follows:
|  | Revolving Credit Activity
|  | Quarter Ended June 30,
|  | 2015 |  | 2014
|  | (Unaudited)
|  | (In thousands, except interest rates)
Weighted average interest rate during the year |  | 1.65% |  | 1.76%
Interest rate at year end |  | 1.65% |  | 1.77%
Maximum amount outstanding during the year | $ | 191,000 | $ | 164,632
Average amount outstanding during the year | $ | 180,714 | $ | 142,170
Facility fees | $ | 94 | $ | 117

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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