Note 10. Long-Term Debt

Following is a summary of the Company’s debt as of the periods indicated:


	December 31, 2016							December 31, 2015
In thousands	Long-term Debt		Unamortized Debt Issuance Costs			Net Long-term Debt		Long-term Debt		Unamortized Debt Issuance Costs			Net Long-term Debt
Senior revolving credit facility	$	452,849	$	(1,221	)	$	451,628	$	338,281	$	(1,022	)	$	337,259
Amortizing loan		38,829		(931	)		37,898		72,896		(1,670	)		71,226

Total	$	491,678	$	(2,152	)	$	489,526	$	411,177	$	(2,692	)	$	408,485

Unused amount of senior revolving credit facility (subject to borrowing base)	$	132,151						$	199,719

In August 2016, the Company amended its senior revolving credit facility by increasing availability under the facility from $538 million to $585 million, and extended the maturity of the facility from September 2018 to August 2019. The facility has an accordion provision that allows for the expansion of the facility to $650 million. Excluding the receivables held by the Company’s VIE, the senior revolving credit facility is secured by substantially all of the Company’s finance receivables and equity interests of the majority of its subsidiaries. Borrowings under the facility bear interest, payable monthly, at rates equal to LIBOR of a maturity the Company elects between one and six months, with a LIBOR floor of 1.00%, plus a 3.00% margin. The one-month LIBOR was 0.88% and 0.50% at December 31, 2016 and 2015, respectively. Alternatively, the Company may pay interest at the prime rate plus a 2.00% margin. The prime rate was 3.75% and 3.50% at December 31, 2016 and 2015, respectively.

Advances on the senior revolving credit facility are capped at 85% of eligible secured finance receivables plus 70% of eligible unsecured finance receivables. These rates are subject to adjustment at certain credit quality levels (83% secured and 68% unsecured as of December 31, 2016). As of December 31, 2016, the Company had $58.2 million of eligible capacity under the facility. The facility also contains restrictive covenants and monthly and annual reporting requirements to the banks. At December 31, 2016, the Company was in compliance with all debt covenants.

In December 2015, the Company and its wholly-owned subsidiary, RMR, entered into a credit agreement providing for a $75.7 million amortizing asset-backed loan to RMR. RMR purchased $86.1 million in automobile finance receivables, net of a $2.6 million allowance for credit losses, from the Company’s affiliates using the proceeds of the loan and an equity investment from the Company to fund such purchase. RMR holds $1.7 million in a restricted cash reserve account to satisfy provisions of the credit agreement. RMR pays interest of 3.00% per annum on the loan balance from the closing date until the date the loan balance has been fully repaid. The amortizing loan terminates in December 2022. The credit agreement allows RMR to prepay the loan when the outstanding balance falls below 20% of the original loan amount.

The amortizing loan is supported by the expected cash flows from the underlying collateralized finance receivables. Collections on these accounts are remitted to a restricted cash collection account, which totaled $2.7 million and $3.9 million as of December 31, 2016 and 2015, respectively. Cash inflows from the finance receivables are distributed to the lender and service providers in accordance with a monthly contractual priority of payments (waterfall) and, as such, the inflows are directed first to servicing fees. RMR pays a 4% servicing fee to the Company, which is eliminated in consolidation. Next, all cash inflows are directed to the interest, principal, and any adjustments to the reserve account of the amortizing loan and, thereafter, to the residual interest that the Company owns. Distributions from RMR to the Company are permitted under the credit agreement.

RMR is considered a VIE under GAAP and is consolidated into the financial statements of RMR’s primary beneficiary. The Company is considered to be the primary beneficiary of RMR because it has (i) power over the significant activities of RMR through its role as servicer of the finance receivables under the credit agreement and (ii) the obligation to absorb losses or the right to receive returns that could be significant through the Company’s interest in the monthly residual cash flows of RMR after the debt is paid.

The carrying amount of VIE assets and liabilities are as follows:


	December 31,
In thousands	2016			2015
Assets
Cash	$	36		$	376
Finance receivables		41,244			80,309
Allowance for credit losses		(2,337	)		(2,588	)
Restricted cash		4,426			7,605
Other assets		201			36

Total assets	$	43,570		$	85,738

Liabilities
Net long-term debt	$	37,898		$	71,226
Accounts payable and accrued expenses		5			50

Total liabilities	$	37,903		$	71,276

Following is a summary of principal payments required on outstanding debt during each of the next five years:


In thousands	Amount
2017	$	21,585
2018		11,185
2019		457,371
2020		1,537
2021		—

Total	$	491,678