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Bank and Other Notes Payable:
9 Months Ended
Sep. 30, 2015
Debt Disclosure [Abstract]  
Bank and Other Notes Payable:
Bank and Other Notes Payable:
Bank and other notes payable consist of the following:
Line of Credit:
The Company has a $1,500,000 revolving line of credit that bears interest at LIBOR plus a spread of 1.38% to 2.0%, depending on the Company's overall leverage level, and matures on August 6, 2018. Based on the Company's leverage level as of September 30, 2015, the borrowing rate on the facility was LIBOR plus 1.50%. In addition, the line of credit can be expanded, depending on certain conditions, up to a total facility of $2,000,000. As of September 30, 2015 and December 31, 2014, borrowings under the line of credit were $1,002,000 and $752,000, respectively, at an average interest rate of 1.88% and 1.89%, respectively. The estimated fair value (Level 2 measurement) of the line of credit at September 30, 2015 and December 31, 2014 was $996,765 and $713,989, respectively, based on a present value model using a credit interest rate spread offered to the Company for comparable debt.
Term Loan:
On December 8, 2011, the Company obtained a $125,000 unsecured term loan under the line of credit that bore interest at LIBOR plus a spread of 1.95% to 3.20%, depending on the Company's overall leverage level, and was to mature on December 8, 2018. Based on the Company's leverage level as of September 30, 2015, the borrowing rate was LIBOR plus 2.20%. As of September 30, 2015 and December 31, 2014, the total interest rate was 2.53% and 2.25%, respectively. The estimated fair value (Level 2 measurement) of the term loan at September 30, 2015 and December 31, 2014 was $125,438 and $119,780, respectively, based on a present value model using a credit interest rate spread offered to the Company for comparable debt. On October 23, 2015, the Company paid off the term loan in full.
Prasada Note:
On March 29, 2013, the Company issued a $13,330 note payable that bears interest at 5.25% and matures on March 29, 2016. The note payable is collateralized by a portion of a development reimbursement agreement with the City of Surprise, Arizona. At September 30, 2015 and December 31, 2014, the note had a balance of $9,575 and $10,879, respectively. The estimated fair value (Level 2 measurement) of the note at September 30, 2015 and December 31, 2014 was $9,680 and $11,178, respectively, based on current interest rates for comparable notes. Fair value was determined using a present value model and an interest rate that included a credit value adjustment based on the estimated value of the collateral for the underlying debt.
As of September 30, 2015 and December 31, 2014, the Company was in compliance with all applicable financial loan covenants.