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Note 11 - Long-term Debt | 12 Months Ended
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Dec. 31, 2017
Notes to Financial Statements |
Debt Disclosure [Text Block] |
11. | Long-term Debt
Term Loans |  | Drawn |  |  | December 31, |  |  | Movement in 2017 |  |  | December 31, |
Issue Date |  | Maturity Date |  | Amount |  |  | 2016 |  |  | Additions |  |  | Repayments |  |  | 2017 |
June 21, 2007 |  | December 21, 2017 |  |  | 49,875,000 |  |  |  | 14,414,250 |  |  |  | - |  |  |  | (14,414,250 | ) |  |  | - |
February 12, 2008 |  | February 19, 2020 |  |  | 40,250,000 |  |  |  | 16,875,000 |  |  |  | - |  |  |  | (2,500,000 | ) |  |  | 14,375,000 |
July 30, 2008 |  | November 4, 2020 |  |  | 33,240,000 |  |  |  | 17,728,000 |  |  |  | - |  |  |  | (1,939,000 | ) |  |  | 15,789,000 |
October 9, 2008 |  | October 9, 2020 |  |  | 29,437,000 |  |  |  | 7,090,000 |  |  |  | - |  |  |  | (780,000 | ) |  |  | 6,310,000 |
September 15, 2016 |  | September 15, 2021 |  |  | 24,600,000 |  |  |  | 21,141,273 |  |  |  | - |  |  |  | (4,026,908 | ) |  |  | 17,114,365 |
April 14, 2014 |  | April 14, 2020 |  |  | 20,400,000 |  |  |  | 14,900,000 |  |  |  | - |  |  |  | (1,800,000 | ) |  |  | 13,100,000 |
February 1, 2011 |  | September 1, 2018 |  |  | 49,400,000 |  |  |  | 31,250,000 |  |  |  | - |  |  |  | (3,300,000 | ) |  |  | 27,950,000 |
March 1, 2011 |  | June 20, 2020 |  |  | 43,250,000 |  |  |  | 29,375,000 |  |  |  | - |  |  |  | (3,000,000 | ) |  |  | 26,375,000 |
September 23, 2013 |  | September 30, 2020 |  |  | 45,212,500 |  |  |  | 28,791,594 |  |  |  | - |  |  |  | (5,052,587 | ) |  |  | 23,739,007 |
March 24, 2014 |  | July 31, 2022 |  |  | 50,225,000 |  |  |  | 42,840,000 |  |  |  | - |  |  |  | (3,605,000 | ) |  |  | 39,235,000 |
April 16, 2014 |  | April 16, 2020 |  |  | 30,000,000 |  |  |  | 22,335,000 |  |  |  | - |  |  |  | (3,330,000 | ) |  |  | 19,005,000 |
June 12, 2014 |  | October 2, 2020 |  |  | 13,000,000 |  |  |  | 11,240,000 |  |  |  | - |  |  |  | (880,000 | ) |  |  | 10,360,000 |
June 20, 2014 |  | January 8, 2023 |  |  | 20,925,000 |  |  |  | 18,440,000 |  |  |  | - |  |  |  | (1,420,000 | ) |  |  | 17,020,000 |
December 20, 2013 |  | June 30, 2023 |  |  | 67,200,000 |  |  |  | 59,475,000 |  |  |  | - |  |  |  | (3,960,000 | ) |  |  | 55,515,000 |
December 24, 2015 |  | December 14, 2022 |  |  | 22,400,000 |  |  |  | 20,906,672 |  |  |  | - |  |  |  | (1,493,328 | ) |  |  | 19,413,344 |
July 4, 2014 |  | September 3, 2021 |  |  | 22,750,000 |  |  |  | 20,718,750 |  |  |  | - |  |  |  | (1,625,000 | ) |  |  | 19,093,750 |
July 29, 2014 |  | July 7, 2023 |  |  | 25,350,000 |  |  |  | 22,709,375 |  |  |  | - |  |  |  | (2,112,500 | ) |  |  | 20,596,875 |
December 7, 2017 |  | December 11, 2022 |  |  | 22,275,000 |  |  |  | - |  |  |  | 10,500,000 |  |  |  | - |  |  |  | 10,500,000 |
May 18, 2016 |  | May 16, 2025 |  |  | 65,650,000 |  |  |  | - |  |  |  | 32,500,000 |  |  |  | (1,015,500 | ) |  |  | 31,484,500 |
Total |  |  |  |  |  |  |  |  | 400,229,914 |  |  |  | 43,000,000 |  |  |  | (56,254,073 | ) |  |  | 386,975,841 |
Current portion of long-term debt |  |  |  |  |  |  |  |  | 55,238,573 |  |  |  |  |  |  |  |  |  |  |  | 42,580,323 |
Long term debt |  |  |  |  |  |  |  |  | 344,991,341 |  |  |  |  |  |  |  |  |  |  |  | 344,395,518 |
Total debt |  |  |  |  |  |  |  |  | 400,229,914 |  |  |  |  |  |  |  |  |  |  |  | 386,975,841 |
Current portion of deferred finance charges |  |  |  |  |  |  |  |  | 644,858 |  |  |  |  |  |  |  |  |  |  |  | 613,716 |
Deferred finance charges non-current |  |  |  |  |  |  |  |  | 1,699,467 |  |  |  |  |  |  |  |  |  |  |  | 1,453,677 |
Total deferred finance charges |  |  |  |  |  |  |  |  | 2,344,325 |  |  |  |  |  |  |  |  |  |  |  | 2,067,393 |
Total debt |  |  |  |  |  |  |  |  | 400,229,914 |  |  |  |  |  |  |  |  |  |  |  | 386,975,841 |
Less: Total deferred finance charges |  |  |  |  |  |  |  |  | 2,344,325 |  |  |  |  |  |  |  |  |  |  |  | 2,067,393 |
Total debt, net of deferred finance charges |  |  |  |  |  |  |  |  | 397,885,589 |  |  |  |  |  |  |  |  |  |  |  | 384,908,448 |
Less: Current portion of long-term debt, net of current portion of deferred finance charges |  |  |  |  |  |  |  |  | 54,593,715 |  |  |  |  |  |  |  |  |  |  |  | 41,966,607 |
Long term debt, net of deferred finance charges |  |  |  |  |  |  |  |  | 343,291,874 |  |  |  |  |  |  |  |  |  |  |  | 342,941,841 |
On December 20, 2013 the Company entered into a term loan with a bank institution to partially finance the acquisition of four LPG carriers under construction, in an amount equal to (i) the lesser of $67,200,000 or 70% of the fair market value of the vessels subject to the Minimum Employment Condition being met at the delivery date of each vessel or (ii) the lesser of $62,400,000 or 65% of the fair market value of the vessels if the Minimum Employment Condition will not be met at the delivery date of each vessel. The term loan was drawn down in four tranches upon the delivery of each vessel. The first and second tranche amounting to $16,000,000 each were drawn down on September 14, 2015 and September 30, 2015, respectively. The third and fourth tranche amounting to $15,600,000 each were drawn down on February 16, 2016 and June 30, 2016, respectively. On May 18, 2016 the Company entered into a term loan with a bank to partially finance the acquisition of two LPG carriers under construction, by two of the Company’s wholly owned subsidiaries. The term loan will not exceed the amount of $74,480,000 and will be drawn down in two tranches upon the delivery of each vessel. The first tranche amounting to $32,500,000 was drawn down on May 16, 2017 and the second tranche amounting to $33,150,000 was drawn down on January 10, 2018. On September 15, 2016, the Company entered into a facility agreement with a bank to refinance the existing term loan dated January 30, 2009. The term loan amounted to $24,600,000 and was drawn down in one tranche at the signing date of the facility agreement. On March 1, 2017 the Company, following the term sheet of May 13, 2016, entered into a term loan with the bank to partially finance the acquisition of two LPG carriers on their delivery. The aggregate term loan is up to $76,020,000 and will be drawn down in two tranches upon the delivery of each vessel. The first tranche amounting to $35,525,000 was drawn down on January 4, 2018 and on January 10, 2018 and the second tranche amounting to $35,262,500 was drawn down on April 13, 2018 and on April 17, 2018. The total facility will be repayable, with the first installment commencing three months after the drawdown, in thirty two consecutive quarterly installments plus a balloon payment payable together with the last installment. On December 7, 2017, the Company entered into a term loan with a bank to repay amounts outstanding under existing loan and to refinance the cost of acquisition of one product carrier. The term loan is up to $22,500,000 and was drawn down in two tranches. The first tranche amounting to $10,500,000 was drawn down on December 11, 2017 and the second tranche amounting to $11,775,000 was drawn down on February 8, 2018. On March 27, 2018, the Company entered into a term loan with a bank to refinance the existing term loan dated February 1, 2011. The term loan amounting to $27,675,000 will be repayable in twenty-four consecutive quarterly installments plus a balloon payment payable together with the last installment. An installment amounting to $275,000 was paid on January 22, 2018 relating to the existing term loan dated February 1, 2011. Remaining obligations of the term loan dated February 1, 2011, have been presented as long-term in accordance with US GAAP as the Company had the intent and ability to refinance the obligation of $27,675,000, on a long term basis through the term loan that the Company has entered on March 27, 2018 discussed above. The above loans are generally repayable in quarterly or semi-annual installments and a balloon payment at maturity and are secured by first priority mortgages over the vessels involved, plus the assignment of the vessels’ insurances, earnings and operating and retention accounts with the lenders, and the guarantee of ship-owning companies, as owners of the vessels. The term loans contain financial covenants requiring the Company to ensure that:
| • | the aggregate market value of the mortgaged vessels at all times exceeds a certain percentage of the amounts outstanding as defined in the term loans, ranging from 125% to 130%,
| • | the leverage of the Company defined as Total Debt net of Cash should not exceed 80% of total market value adjusted assets,
| • | the Interest Coverage Ratio of the Company defined as EBITDA to interest expense to be at all times greater than to 2.5:1,
| • | at least a certain percentage of the Company is to always be owned by members of the Vafias family,
| • | the Company should maintain on a monthly basis a cash balance of a proportionate amount of the next installment and relevant interest plus a minimum aggregate cash balance of $7,917,738 in the earnings account with the relevant banks,
| • | dividends paid by the borrower will not exceed 50% of the Company’s free cash flow in any rolling 12 month period.
Gross deferred finance charges amounting to $7,055,914 and $7,871,170 as of December 31, 2016 and December 31, 2017, respectively, represent fees paid to the lenders for obtaining the related loans, and are presented on the balance sheet as a direct deduction from the carrying amount of the related loan and credit facility net of accumulated amortization. For the years ended December 31, 2015, 2016 and 2017, the amortization of deferred financing charges amounted to $587,157, $715,587 and $690,841, respectively, and is included in interest and finance costs in the consolidated statements of operations. The interest rates on the outstanding loans as of December 31, 2017 are based on Libor plus a margin which varies from 0.80% to 3.00%. The average interest rates (including the margin) on the above outstanding loans for the applicable periods were: Year ended December 31, 2015: 2.67% Year ended December 31, 2016: 3.43% Year ended December 31, 2017: 3.97% Bank loan interest expense for the above loans for the years ended December 31, 2015, 2016 and 2017 amounted to $10,175,944, $14,149,326 and $15,640,377, respectively. Of these amounts, for the years ended December 31, 2015, 2016 and 2017, the amounts of $1,822,443, $1,660,802 and $813,423, respectively, were capitalized as part of advances paid for vessels under construction. Interest expense, net of interest capitalized, is included in interest and finance costs in the consolidated statements of operations. At December 31, 2017, the Company was in compliance with all of its debt financial covenants. The aggregate available unused amounts under these facilities at December 31, 2017 were $125,260,000 and the Company is required to pay a quarterly commitment fee from 0.70% to 0.77% per annum of the unutilized portion of the line of credit. The annual principal payments to be made, for the abovementioned loans, after December 31, 2017 are as follows:
December 31, |  | Amount |
2018 |  |  | 42,580,323 |
2019 |  |  | 42,505,323 |
2020 |  |  | 118,038,569 |
2021 |  |  | 53,874,219 |
2022 |  |  | 58,478,532 |
Thereafter |  |  | 71,498,875 |
Total |  |  | 386,975,841 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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