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Long-Term Debt | 12 Months Ended
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Dec. 31, 2017
Debt Disclosure [Abstract] |
Long-Term Debt | Note 10. Long-Term Debt The following is a summary of the Company’s long-term debt as of the periods indicated:
|  | December 31, 2017 |  |  | December 31, 2016 |
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 |  | $ | 452,050 |  |  | $ | (2,162 | ) |  | $ | 449,888 |  |  | $ | 452,849 |  |  | $ | (1,221 | ) |  | $ | 451,628 |
Amortizing loan |  |  | 53,380 |  |  |  | (547 | ) |  |  | 52,833 |  |  |  | 38,829 |  |  |  | (931 | ) |  |  | 37,898 |
Revolving warehouse credit facility |  |  | 66,066 |  |  |  | (2,241 | ) |  |  | 63,825 |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 571,496 |  |  | $ | (4,950 | ) |  | $ | 566,546 |  |  | $ | 491,678 |  |  | $ | (2,152 | ) |  | $ | 489,526 |
Unused amount of revolving credit facilities (subject to borrowing base) |  | $ | 244,884 |  |  |  |  |  |  |  |  |  |  | $ | 132,151 |  |  |  |  |  |  |  |  |
In June 2017, the Company amended and restated its senior revolving credit facility to, among other things, increase the availability under the facility from $585 million to $638 million and extend the maturity of the facility from August 2019 to June 2020. The facility has an accordion provision that allows for the expansion of the facility to $700 million. Excluding the receivables held by the Company’s VIEs, 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, increasing to 3.25% when the availability percentage is below 10%. The LIBOR rate for this facility was 1.63% and 0.88% at December 31, 2017 and 2016, respectively. Alternatively, the Company may pay interest at the prime rate, plus a 2.00% margin, increasing to 2.25% when the availability percentage is below 10%. The prime rate was 4.50% and 3.75% at December 31, 2017 and 2016, respectively. The Company pays an unused line fee of 0.50% per annum, payable monthly, decreasing to 0.375% when the average outstanding balance exceeds $413.0 million. 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% of eligible secured finance receivables and 68% of eligible unsecured finance receivables as of December 31, 2017). As of December 31, 2017, the Company had $46.8 million of eligible borrowing capacity under the facility. In June 2017, the Company and its wholly-owned subsidiary, RMR II, entered into a credit agreement providing for a $125 million revolving warehouse credit facility to RMR II (expandable to $150 million). RMR II purchases large loan finance receivables, net of the related allowance for credit losses, from the Company’s affiliates using the proceeds of the facility and equity investments from the Company. The facility is secured by the finance receivables owned by RMR II. RMR II held $0.8 million in a restricted cash reserve account as of December 31, 2017 to satisfy provisions of the credit agreement. Through October 1, 2017, borrowings under the facility bore interest, payable monthly, at a blended rate equal to three-month LIBOR, plus a margin of 3.50%. Effective October 2, 2017 and February 5, 2018, the margin decreased to 3.25% and 3.00%, respectively, following the satisfaction of milestones associated with the Company’s conversion to a new loan origination and servicing system. The three-month LIBOR was 1.69% at December 31, 2017. RMR II pays an unused commitment fee of between 0.35% and 0.85% per annum, payable monthly, based upon the average daily utilization of the facility. Advances on the facility are capped at 80% of eligible finance receivables. In November 2017, the Company and its wholly-owned subsidiary, RMR, amended and restated the December 2015 credit agreement that provided for a $75.7 million asset-backed, amortizing loan to RMR. The amended and restated credit agreement, among other things, provides for an additional loan advance in the amount of $37.8 million and extends the maturity date to December 2024. The loan is secured by the finance receivables owned by RMR. RMR held $1.3 million in a restricted cash reserve account as of December 31, 2017 to satisfy provisions of the credit agreement. RMR paid interest of 3.00% per annum on the loan balance. In February 2018, the Company agreed to lower the advance rate on the loan from 88% to 85% and to increase the interest rate from 3.00% to 3.25%. The amended and restated credit agreement allows RMR to prepay the loan when the outstanding balance falls below 20% of the original loan amount. These debt agreements contain certain restrictive covenants requiring monthly and annual reporting to the banks and include maintenance of specified interest coverage and debt ratios, restrictions on distributions, limitations on other indebtedness, maintenance of a minimum allowance for credit losses, and certain other restrictions. At December 31, 2017, the Company was in compliance with all debt covenants. Both the amortizing loan and warehouse credit facility are supported by the expected cash flows from the underlying collateralized finance receivables. Collections on these accounts are remitted to restricted cash collection accounts, which totaled $8.6 million and $2.7 million as of December 31, 2017 and 2016, respectively. Cash inflows from the finance receivables are distributed to the lenders and service providers in accordance with a monthly contractual priority of payments and, as such, the inflows are directed first to servicing fees. RMR and RMR II pay 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 accounts and, thereafter, to the residual interest that the Company owns. Distributions from RMR and RMR II to the Company are permitted under the credit agreements. Both RMR and RMR II are considered VIEs under GAAP and are consolidated into the financial statements of their primary beneficiary. The Company is considered to be the primary beneficiary of RMR and RMR II because it has (i) power over the significant activities of RMR and RMR II through its role as servicer of the finance receivables under each 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 and RMR II after each debt is paid. The carrying amounts of consolidated VIE assets and liabilities are as follows:
|  | December 31, |
In thousands |  | 2017 |  |  | 2016 |
Assets |  |  |  |  |  |  |  |
Cash |  | $ | 70 |  |  | $ | 36 |
Finance receivables |  |  | 137,239 |  |  |  | 41,244 |
Allowance for credit losses |  |  | (7,129 | ) |  |  | (2,337 | )
Restricted cash |  |  | 10,734 |  |  |  | 4,426 |
Other assets |  |  | 119 |  |  |  | 201 |
Total assets |  | $ | 141,033 |  |  | $ | 43,570 |
Liabilities |  |  |  |  |  |  |  |
Net long-term debt |  | $ | 116,658 |  |  | $ | 37,898 |
Accounts payable and accrued expenses |  |  | 53 |  |  |  | 5 |
Total liabilities |  | $ | 116,711 |  |  | $ | 37,903 |
The following is a summary of principal payments required on outstanding debt during each of the next five years:
In thousands |  | Amount |
2018 |  | $ | 27,884 |
2019 |  |  | 81,354 |
2020 |  |  | 458,892 |
2021 |  |  | 2,527 |
2022 |  |  | 839 |
Total |  | $ | 571,496 |

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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