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Long-term Debt | 12 Months Ended
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Dec. 31, 2019
Debt Disclosure [Abstract] |
Long-term Debt | 11. Long-term Debt
Term Loans |  | Drawn Amount |  |  | December 31, 2018 |  |  | Movement in 2019 |  |  | Deconsolidated (Note 7) |  |  | December 31, 2019 |
Issue Date/ Refinancing Date |  | Maturity Date |  | Additions |  |  | Repayments |
February 12, 2008 |  | February 19, 2020 |  |  | 40,250,000 |  |  |  | 11,875,000 |  |  |  | — |  |  |  | (11,875,000 | ) |  |  | — |  |  |  | — |
July 30, 2008 |  | November 4, 2020 |  |  | 33,240,000 |  |  |  | 13,850,000 |  |  |  | — |  |  |  | — |  |  |  | (13,850,000 | ) |  |  | — |
December 14, 2018 |  | December 18, 2023 |  |  | 14,094,184 |  |  |  | 14,094,184 |  |  |  | — |  |  |  | (2,200,000 | ) |  |  | — |  |  |  | 11,894,184 |
May 28, 2019 |  | April 16, 2024 |  |  | 11,000,000 |  |  |  | 11,700,000 |  |  |  | — |  |  |  | (1,340,000 | ) |  |  | — |  |  |  | 10,360,000 |
August 6, 2019 |  | March 1, 2024 |  |  | 27,675,000 |  |  |  | 25,200,000 |  |  |  | — |  |  |  | (3,300,000 | ) |  |  | — |  |  |  | 21,900,000 |
March 1, 2011 |  | June 20, 2020 |  |  | 43,250,000 |  |  |  | 23,375,000 |  |  |  | — |  |  |  | (23,375,000 | ) |  |  | — |  |  |  | — |
July 5, 2019 |  | July 11, 2026 |  |  | 22,230,000 |  |  |  | — |  |  |  | 22,230,000 |  |  |  | (793,929 | ) |  |  | — |  |  |  | 21,436,071 |
March 29, 2019 |  | December 29, 2022 |  |  | 25,458,432 |  |  |  | 15,244,697 |  |  |  | 11,250,000 |  |  |  | (8,257,649 | ) |  |  | — |  |  |  | 18,237,048 |
August 7, 2019 |  | July 31, 2022 |  |  | 50,225,000 |  |  |  | 35,630,000 |  |  |  | — |  |  |  | (6,605,000 | ) |  |  | — |  |  |  | 29,025,000 |
April 16, 2014 |  | April 16, 2020 |  |  | 30,000,000 |  |  |  | 16,300,000 |  |  |  | — |  |  |  | (16,300,000 | ) |  |  | — |  |  |  | — |
December 14, 2018 |  | December 18, 2023 |  |  | 9,480,000 |  |  |  | 9,480,000 |  |  |  | — |  |  |  | (800,000 | ) |  |  | — |  |  |  | 8,680,000 |
June 20, 2014 |  | January 8, 2023 |  |  | 20,925,000 |  |  |  | 15,600,000 |  |  |  | — |  |  |  | (1,420,000 | ) |  |  | — |  |  |  | 14,180,000 |
August 6, 2019 |  | June 30, 2023 |  |  | 67,200,000 |  |  |  | 51,555,000 |  |  |  | — |  |  |  | (3,960,000 | ) |  |  | — |  |  |  | 47,595,000 |
December 24, 2015 |  | December 14, 2022 |  |  | 22,400,000 |  |  |  | 17,920,016 |  |  |  | — |  |  |  | (1,493,328 | ) |  |  | — |  |  |  | 16,426,688 |
July 4, 2014 |  | September 3, 2021 |  |  | 22,750,000 |  |  |  | 17,468,750 |  |  |  | — |  |  |  | (1,625,000 | ) |  |  | — |  |  |  | 15,843,750 |
July 29, 2014 |  | July 7, 2023 |  |  | 25,350,000 |  |  |  | 18,484,375 |  |  |  | — |  |  |  | (2,112,500 | ) |  |  | — |  |  |  | 16,371,875 |
December 7, 2017 |  | December 11, 2022 |  |  | 22,275,000 |  |  |  | 19,520,000 |  |  |  | — |  |  |  | (2,755,000 | ) |  |  | — |  |  |  | 16,765,000 |
May 18, 2016 |  | December 31, 2025 |  |  | 65,650,000 |  |  |  | 61,049,260 |  |  |  | — |  |  |  | (4,103,320 | ) |  |  | — |  |  |  | 56,945,940 |
March 1, 2017 |  | April 17, 2026 |  |  | 70,787,500 |  |  |  | 67,624,999 |  |  |  | — |  |  |  | (5,056,252 | ) |  |  | — |  |  |  | 62,568,747 |
Total |  |  |  |  |  |  |  |  | 445,971,281 |  |  |  | 33,480,000 |  |  |  | (97,371,978 | ) |  |  | (13,850,000 | ) |  |  | 368,229,303 |
Current portion of long-term debt |  |  |  |  |  |  | 42,433,562 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 41,421,346 |
Current portion of long-term debt associated with vessels held for sale |  |  |  |  |  |  | 30,150,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |
Long term debt |  |  |  |  |  |  |  |  | 373,387,719 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 326,807,957 |
Total debt |  |  |  |  |  |  |  |  | 445,971,281 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 368,229,303 |
Current portion of deferred finance charges |  |  |  |  |  |  | 706,725 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 685,790 |
Current portion of deferred finance charges associated with vessels held for sale |  |  |  |  |  |  | 73,644 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |
Deferred finance charges non-current |  |  |  |  |  |  | 1,873,466 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,560,055 |
Total deferred finance charges |  |  |  |  |  |  | 2,653,835 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,245,845 |
Total debt |  |  |  |  |  |  |  |  | 445,971,281 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 368,229,303 |
Less: Total deferred finance charges |  |  |  |  |  |  | 2,653,835 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,245,845 |
Total debt, net of deferred finance charges |  |  |  | 443,317,446 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 365,983,458 |
Less: Current portion of long-term debt, net of current portion of deferred finance charges |  |  |  |  |  |  | 41,726,837 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 40,735,556 |
Less: Current portion of long-term debt associated with vessels held for sale, net of current portion of deferred finance charges |  |  |  |  |  |  | 30,076,356 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |
|  |  |  | 371,514,253 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 325,247,902 |
The below are changes in term loans during the years ended December 31, 2018 and 2019. 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 is up to $74,480,000 and was 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 March 1, 2017 the Company, 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 was 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. 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 amounting to $27,675,000 with the same bank to refinance the existing term loan dated February 1, 2011. An installment amounting to $275,000 was paid on January 22, 2018 relating to the existing term loan dated February 1, 2011. On August 6, 2019, the Company entered into a supplemental agreement with the bank based on which the margin of the existing loan changed from 2.7% to 2.5%. On April 27, 2018, the Company voluntary repaid $4,122,370 being part of the outstanding balance of the term loan dated September 23, 2013. On August 17, 2018, the Company voluntary repaid the outstanding balance of the term loan dated October 9, 2008, amounting to $5,920,000. On December 14, 2018, the Company entered into a term loan with the same bank to refinance the existing term loans dated June 12, 2014 and September 15, 2016. The aggregate committed term loan is up to $23,574,184 and was drawn down in two tranches at the signing date of the term loan. On January 30, 2019, the Company signed a side letter with the bank to reduce the margin of an existing loan dated July 4, 2014 from 3% to 2.5%. On February 1, 2019, the Company sold 49.9% of the equity interests of two subsidiaries which had borrowed a loan dated July 30, 2008. Since the retained investments in these companies are accounted for under the equity method (Note 7), the loan is no longer included in the consolidated balance sheets of the Company. On March 27, 2019, the Company voluntary repaid the outstanding balance of the term loan dated April 16, 2014, amounting to $15,780,000. On March 29, 2019, the Company entered into a term loan with a bank to refinance the existing term loans dated February 12, 2008 and September 23, 2013. Two installments amounting to $625,000 and $1,036,265 were paid on February 19, 2019 and on March 29, 2019, respectively, relating to the existing term loans. The new term loan is $25,458,432 and will be repayable, with the first installment commencing three months after the drawdown, in fifteen consecutive quarterly installments. On September 30, 2019, the Company voluntary repaid $3,419,645 being part of the outstanding balance of the term loan. On May 28 , 2019, the Company entered into a term loan with the same bank to refinance the existing term loan dated April 14, 2014. Two installments amounting to $700,000 were paid on January 16, 2019 and April 16, 2019 relating to the existing term loan. The new term loan is $11,000,000 and will be repayable, with the first installment commencing three months after the drawdown, in twenty consecutive quarterly installments plus a balloon payment payable together with the last installment. On July 5 , 2019, the Company entered into a term loan with a bank to refinance the existing term loan dated March 1, 2011. Four installments amounting to $1,500,000 were paid on January 12, 2019, on March 20, 2019, on April 12, 2019 and on June 20, 2019, respectively, relating to the existing term loan. The new term loan is $22,230,000 and will be repayable, with the first installment commencing three months after the drawdown, in twenty eight consecutive quarterly installments. On August 6, 2019, the Company entered into a supplemental agreement with the bank to reduce the margin of an existing loan dated December 20, 2013 from 2.9% to 2.5%. On August 7, 2019, the Company entered into a supplemental agreement with the bank to amend the repayment schedule of the existing loan dated March 24, 2014 and reduce the margin from 2.8% to 2.3%. The Company p repaid $3,000,000 being part of the outstanding balance of the term loan . 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 135%,
| • | 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 which is EBITDA (as defined in the loan agreements) to interest expense to be at all times greater than 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 amounting to $1,589,768 representing a proportionate amount of the next installment and relevant interest plus a minimum aggregate cash balance amounting to $12,065,222 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 $8,374,435 and $8,851,636 as of December 31, 2018 and December 31, 2019, 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, 2017, 2018 and 2019, the amortization of deferred financing charges amounted to $690,841, $858,582 and $885,191, 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, 2019 are based on L IBOR plus a margin which varies from 2.15% to 3.00%. The average interest rates (including the margin) on the above outstanding loans for the applicable periods were: Year ended December 31, 2017: 3.97% Year ended December 31, 2018: 5.34% Year ended December 31, 2019: 4.91% Bank loan interest expense for the above loans for the years ended December 31, 2017, 2018 and 2019 amounted to $15,640,377, $22,150,386 and $19,999,902, respectively. Of these amounts, for the years ended December 31, 2017, 2018 and 2019, the amounts of $813,423, nil and $97,620, 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, 2019, the Company was in compliance with all of its debt financial covenants. The annual principal payments to be made, for the abovementioned loans, after December 31, 2019 are as follows:
December 31, |  | Amount |
2020 |  |  | 41,421,346 |
2021 |  |  | 67,415,096 |
2022 |  |  | 87,184,402 |
2023 |  |  | 66,658,845 |
2024 |  |  | 26,275,286 |
Thereafter |  |  | 79,274,328 |
Total |  |  | 368,229,303 |

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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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