XML 23 R14.htm IDEA: XBRL DOCUMENT v3.22.4
Borrowings
 6 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Borrowings

8. Borrowings

Related party borrowings of the Company's subsidiaries are summarized in the following table:

(in thousands)

 

Borrower

 

December 31, 2022

 

 

June 30, 2022

 

Seller Note

 

GECM

 

$

3,661

 

 

$

6,270

 

Forest Note

 

FM Acquisition

 

 

19,700

 

 

 

-

 

Total principal

 

 

 

$

23,361

 

 

$

6,270

 

Unamortized debt issuance cost

 

 

 

 

-

 

 

 

-

 

Total related party notes payable

 

 

 

 

23,361

 

 

 

6,270

 

Less current portion of related party notes payable

 

 

 

 

(23,361

)

 

 

-

 

Related party notes payable, net of current portion

 

 

 

$

-

 

 

$

6,270

 

The Company’s and subsidiaries’ other outstanding borrowings are summarized in the following table:

(in thousands)

 

Borrower

 

December 31, 2022

 

 

June 30, 2022

 

GEGGL Notes

 

GEG

 

$

26,945

 

 

$

26,945

 

Total principal

 

 

 

$

26,945

 

 

$

26,945

 

Unamortized debt discounts and issuance costs

 

 

 

 

(1,278

)

 

 

(1,413

)

Total other outstanding borrowings

 

 

 

 

25,667

 

 

 

25,532

 

Less current portion of other outstanding borrowings

 

 

 

 

-

 

 

 

-

 

Other outstanding borrowings, net of current portion

 

 

 

$

25,667

 

 

$

25,532

 

During the three and six months ended December 31, 2022, the Company incurred interest expense of $0.7 million and $1.3 million, respectively, on related-party and other borrowings. During the three and six months ended December 31, 2021, the Company did not have any related-party or other borrowings. See Note 9 – Convertible Notes for interest expense on Convertible Notes and Note 10 – Non-Controlling Interests and Redeemable Preferred Stock of Subsidiaries for interest expense on the preferred stock of subsidiaries.

The Company’s aggregate future required principal debt repayments are summarized in the following table:

(in thousands)

 

Principal Due

 

For the six months ending June 30, 2023

 

$

19,700

 

For the year ending June 30, 2024

 

 

3,661

 

For the year ending June 30, 2025

 

 

-

 

For the year ending June 30, 2026

 

 

-

 

For the year ending June 30, 2027

 

 

26,945

 

Thereafter

 

 

-

 

Total

 

$

50,306

 

Additional details of each borrowing are discussed below.

Seller Note

On May 4, 2022 as part of the consideration paid to acquire the Monomoy UpREIT investment management agreement, GECM issued ICAM a $6.3 million promissory note (the Seller Note). The Seller Note is due on August 4, 2023 and is payable at GECM’s option with either cash or newly issued GEG shares. There are no prepayment penalties. The Seller Note bears interest at 6.5%, which is paid quarterly.

In December 2022, the Company settled the principal amount of $2.0 million by transferring 200,000 shares of GECC stock. In August 2022, the Company settled the principal amount of $0.6 million by transferring 50,000 shares of GECC stock.

GEGGL Notes

On June 9, 2022, we issued $26.9 million in aggregate principal amount of 7.25% notes due 2027 (the GEGGL Notes), which included $1.9 million of GEGGL Notes issued in connection with the partial exercise of the underwriters’ over-allotment option. The GEGGL Notes are unsecured obligations and rank equal with all of our outstanding and future unsecured unsubordinated indebtedness. The unsecured notes are effectively subordinated, or junior in right of payment, to indebtedness under our Convertible Notes and any other future secured indebtedness that we may incur and structurally subordinated to all future indebtedness and other obligations of our subsidiaries. We pay interest on the GEGGL Notes on March 31, June 30, September 30 and December 31 of each year. The GEGGL Notes will mature on June 30, 2027. The GEGGL Notes can be called on, or after, June 30, 2024. Holders of the GEGGL Notes do not have the option to have the notes repaid prior to the stated maturity date. The GEGGL Notes were issued in minimum denominations of $25 and integral multiples of $25 in excess thereof.

The GEGGL Notes include covenants that limit additional indebtedness or the payment of dividends subject to compliance with a net consolidated debt to equity ratio of 2:1. As of December 31, 2022 our consolidated debt to equity ratio is 1.22:1.00.