XML 23 R11.htm IDEA: XBRL DOCUMENT

Long-Term Debt

3 Months Ended

Dec. 31, 2016

(5) Long-Term Debt. Long-term debt is summarized as follows (in thousands):

	December 31,		September 30,
	2016		2016
Revolving credit (uncollateralized)	$	6,665		6,807
5.6% to 7.9% mortgage notes
due in installments through 2027		34,080		35,125
		40,745		41,932
Less portion due within one year		4,526		4,455
	$	36,219		37,477

On January 30, 2015, the Company entered into a five year credit agreement with Wells Fargo with a maximum facility amount of $20 million (the "Credit Agreement"). The Credit Agreement provides a revolving credit facility (the “Revolver”) with a $10 million sublimit available for standby letters of credit. As of December 31, 2016, there was $6,441,000 outstanding on the revolver, $2,442,000 outstanding under letters of credit and $11,117,000 available for borrowing. The letters of credit were issued to guarantee certain obligations to state agencies related to real estate development. Most of the letters of credit are irrevocable for a period of one year and typically are automatically extended for additional one-year periods. The Revolver bears interest at a rate of 1.4% over the selected LIBOR, which may change quarterly based on the Company’s ratio of Consolidated Total Debt to Consolidated Total Capital, as defined. A commitment fee of 0.15% per annum is payable quarterly on the unused portion of the commitment. The commitment fee may also change quarterly based upon the ratio described above. The credit agreement contains certain conditions and financial covenants, including a minimum $110 million tangible net worth. As of December 31, 2016, the tangible net worth covenant would have limited our ability to pay dividends or repurchase stock with borrowed funds to a maximum of $74 million combined. The Company was in compliance with all covenants as of December 31, 2016.

On July 24, 2015 the Company closed on a five year, $20 million secured revolver with First Tennessee Bank with a twenty-four month window to convert up to the full amount of the facility into a ten year term loan. Interest accrues at 1.90% over one month LIBOR plus an annual commitment fee of 0.10%. As of December 31, 2016, there was $224,000 outstanding on the revolver and $19,776,000 available for borrowing. The Company expects to close on a second facility with First Tennessee Bank with a $20 million ten year term loan secured by to-be-determined collateral from our current pool of unencumbered warehouse/office properties during 2017. The purpose of these loans is to facilitate growth through new construction in the Land Development and Construction segment and/or acquisition of existing, operating buildings to be added to the Asset Management segment.

During the three months ended December 31, 2016 and December 31, 2015 the Company capitalized interest costs of $328,000 and $222,000, respectively.