XML 38 R17.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Debt | 12 Months Ended
--- | ---
Dec. 31, 2016
Debt [Abstract] |
Debt | NOTE 10 - Debt The Company’s borrowings at December 31, 2016 and 2015, net of deferred financing costs and i ncorporating the impact of interest rate swaps on our effective interest rates, are summarized below: ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  | As of December 31, 2016
﻿(Dollars in thousands) |  | Maturity Date |  | Contractual Facility |  | Balance, Gross |  | Balance, Net(3) |  | Stated Interest Rate |  | Effective Interest Rate (1)
﻿Denominated in USD |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | Trust Preferred Securities (USA) |  | April 30, 2027 |  | $ | 27,913 |  | $ | 27,913 |  | $ | 27,340 |  | 4.89% |  | 5.20%
﻿ | Bank of America Credit Facility (USA) |  | November 28, 2019 |  |  | 55,000 |  |  | 39,950 |  |  | 39,759 |  | 3.27% |  | 3.90%
﻿ | Bank of America Line of Credit (USA) |  | October 31, 2019 |  |  | 5,000 |  |  | -- |  |  | -- |  | 3.77% |  | 3.77%
﻿ | Cinema 1, 2, 3 Term Loan (USA)(4) |  | September 1, 2019 |  |  | 20,000 |  |  | 19,901 |  |  | 19,356 |  | 3.25% |  | 3.25%
﻿ | Minetta & Orpheum Theatres Loan (USA)(4) |  | June 1, 2018 |  |  | 7,500 |  |  | 7,500 |  |  | 7,398 |  | 3.38% |  | 3.38%
﻿ | U.S. Corporate Office Term Loan (USA)(4) |  | January 1, 2027 |  |  | 8,363 |  |  | 8,363 |  |  | 8,239 |  | 4.64% |  | 4.64%
﻿ | Union Square Construction Financing (USA)(5) |  | December 29, 2019 |  |  | 57,500 |  |  | 8,000 |  |  | 4,751 |  | 4.52% |  | 4.52%
﻿Denominated in foreign currency ("FC")(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | NAB Corporate Loan Facility (AU) |  | June 30, 2019 |  |  | 48,080 |  |  | 28,558 |  |  | 28,421 |  | 2.64% |  | 2.64%
﻿ | Westpac Bank Corporate Credit Facility (NZ) |  | March 31, 2018 |  |  | 36,877 |  |  | 8,350 |  |  | 8,350 |  | 3.80% |  | 3.80%
﻿Total |  |  |  |  | $ | 266,233 |  | $ | 148,535 |  | $ | 143,614 |  |  |  |
﻿ (1) Effective interest rate includes the impact of interest rate derivatives hedging the interest rate risk associated with Trust Preferred Securities and Bank of America Credit Facility that were outstanding as of December 31, 2016. (2) The contractual facilities and outstanding balances of the FC-denominated borrowings were translated into U.S. dollars based on the applicable exchange rates as of December 31, 2016. (3) Net of deferred financing costs amounting to $4.9 million. (4) The loan for our Minetta & Orpheum Theatres was obtained from Santander Bank. The term loan for our Cinema 1,2,3 Theatr e, which was previously provided by Santander Bank, was refinanced during the third quarter of 2016 with Valley National Bank. The new term loan, which is collateralized by our new U.S Corporate Headquarters office building purchased in April 2016, was obtained with Citizens Asset Finance, Inc. during the fourth quarter of 2016. Refer below for further discussions on these new loan arrangements. (5) In December 2016, we successfully negotiated the construction financing for our Union Square redevelopment project, $8.0 million of which was advanced from the total construction loan limit of $57.5 million to repay the existing line of credit with East West Bank, which was originally scheduled to mature on July 2, 2017. Refer below for further discussions on this construction financing. ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  | As of December 31, 2015
﻿(Dollars in thousands) |  | Maturity Date |  | Contractual Facility |  | Balance, Gross |  | Balance, Net(3) |  | Stated Interest Rate |  | Effective Interest Rate (1)
﻿Denominated in USD |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | Trust Preferred Securities (USA) |  | April 30, 2027 |  | $ | 27,913 |  | $ | 27,913 |  | $ | 27,125 |  | 4.32% |  | 5.20%
﻿ | Bank of America Credit Facility (USA) |  | November 28, 2019 |  |  | 55,000 |  |  | 29,750 |  |  | 29,321 |  | 2.92% |  | 3.65%
﻿ | Bank of America Line of Credit (USA) |  | October 31, 2017 |  |  | 5,000 |  |  | 2,500 |  |  | 2,500 |  | 3.42% |  | 3.42%
﻿ | Cinema 1, 2, 3 Term Loan (USA)(4) |  | July 1, 2016 |  |  | 15,000 |  |  | 15,000 |  |  | 14,887 |  | 3.75% |  | 3.75%
﻿ | Cinema 1, 2, 3 Line of Credit (USA)(4) |  | July 1, 2016 |  |  | 6,000 |  |  | -- |  |  | -- |  | 3.75% |  | 3.75%
﻿ | Minetta & Orpheum Theatres Loan (USA)(4) |  | June 1, 2018 |  |  | 7,500 |  |  | 7,500 |  |  | 7,326 |  | 3.00% |  | 3.00%
﻿ | Union Square Line of Credit (USA)(4) |  | July 2, 2017 |  |  | 8,000 |  |  | 8,000 |  |  | 7,858 |  | 3.65% |  | 3.65%
﻿Denominated in FC (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | NAB Corporate Loan Facility (AU) |  | June 30, 2019 |  |  | 48,452 |  |  | 26,594 |  |  | 26,412 |  | 3.06% |  | 3.06%
﻿ | Westpac Bank Corporate Credit Facility (NZ) |  | March 31, 2018 |  |  | 34,210 |  |  | 13,684 |  |  | 13,684 |  | 4.45% |  | 4.45%
﻿Total |  |  |  |  | $ | 207,075 |  | $ | 130,941 |  | $ | 129,113 |  |  |  |
(1) Effective interest rate includes the impact of interest rate derivatives hedging the interest rate risk associated with Trust Preferred Securities and Bank of America Credit Facility that were outstanding as of December 31, 2015. (2) The contractual facilities and outstanding balances of the FC-denominated borrowings were translated into U.S. dollar based on the applicable exchange rates as of December 31, 2015. (3) The balance as of December 31, 2015 included the reclassification adjustment relating to netting of deferred financing costs amounting to $1.8 million, as discussed in Note 2 – Summary of Significant Accounting Policies – Recently Adopted and Issued Accounting Pronouncements. (4) In 2015, the loans for our Cinema 1,2,3 and Minetta & Orpheum Theatres were obtained from Bank of Santander, while the Union Square line of credit was obtained through East West Bank. ﻿ Our loan arrangements are presented, net of the deferred financing costs, on the face of our consolidated balance sheet as follows: ﻿ ﻿
﻿ |  |  |  |  |  |
﻿ |  | Dollars in thousands
﻿Balance Sheet Caption |  | December 31, 2016 |  | December 31, 2015
﻿Debt - current portion |  | $ | 567 |  | $ | 14,887
﻿Debt - long-term portion |  |  | 115,707 |  |  | 87,101
﻿Subordinated debt |  |  | 27,340 |  |  | 27,125
﻿Total borrowings |  | $ | 143,614 |  | $ | 129,113
Debt denominated in USD Trust Preferred Securities (“TPS”) On February 5, 2007, we issued $51.5 million in 20-year fully subordinated notes to a trust over which we have significant influence, which in turn issued $51.5 million in securities. Of the $51.5 million, $50.0 million in TPS were issued to unrelated investors in a private placement and $1.5 million of common trust securities were issued by the trust to Reading called “Investment in Reading International Trust I” on our balance sheets. Effective May 1, 2012, the interest rate on our Trust Preferred Securities changed from a fixed rate of 9.22%, which was in effect for five years, to a variable rate of three month LIBOR plus 4.00%, which will reset each quarter through the end of the loan unless we exercise our right to re-fix the rate at the current market rate at that time. Effective October 28, 2013, we entered into a fixed interest rate swap of $27.9 million at 1.20% plus the 4.00% margin, expiring on October 31, 2017, see Note 16 – Derivative Instruments. There are no principal payments due until maturity in 2027 when the notes and the trust securities are scheduled to be paid in full. We may pay off the debt after the first five years at 100% of the principal amount without any penalty. The trust is essentially a pass through, and the transaction is accounted for on our books as the issuance of fully subordinated notes. The credit facility includes a number of affirmative and negative covenants designed to monitor our ability to service the debt. The most restrictive covenant of the facility requires that we must maintain a fixed charge coverage ratio at a certain level. However, on December 31, 2008, we secured a waiver of all financial covenants with respect to our TPS for a period of nine years (through December 31, 2017), in consideration of the payment of $1.6 million, consisting of an initial payment of $1.1 million, a payment of $270,000 made in December 2011, and a payment of $270,000 in December 2014. During the first quarter of 2009, we took advantage of the then current market illiquidity for securities such as our TPS to repurchase $22.9 million in face value of those securities through an exchange of $11.5 million worth of marketable securities purchased during the period for the express purpose of executing this exchange transaction with the third party holder of these TPS. During the twelve months ended 2009, we amortized $106,000 of discount to interest income associated with the holding of these securities prior to their extinguishment. On April 30, 2009, we extinguished $22.9 million of these TPS, which resulted in a gain on retirement of subordinated debt (TPS) of $10.7 million net of loss on the associated write-off of deferred loan costs of $749,000 and a reduction in our Investment in Reading International Trust I from $1.5 million to $838,000. During the three years ended December 31, 2016, 2015, we paid $1.4 million each year in preferred dividends to unrelated investors that are included in interest expense. At December 31, 2016 and 2015, we had preferred dividends payable of $184,000 and $198,000, respectively. Interest payments for this loan are required every three months. Bank of America Credit Facility On March 3, 2016, we amended our $55.0 million credit facility with Bank of America to permit real property acquisition loans. This amendment was subject to the provision that the consolidated leverage ratio would be reduced by 0.25% from the established levels in the credit facility during the period of such borrowing subject further to a repayment of such borrowings on the earlier of the eighteen months from the date of such borrowing or the maturity date of the credit agreement. Such modification was not considered substantial under US GAAP. Prior to the above amendment, i n November 2014, it was refinanced from $35.0 million to $55.0 million, bearing an interest rate of LIBOR plus an applicable margin rate (ranging from 3.0% to 2.5%) adjusted quarterly and maturing on November 28, 2019. Bank of America Line of Credit In October 2012, Bank of America renewed and increased our existing $3.0 million line of credit (“LOC”) to $5.0 million. The LOC bears an interest rate of 3.0% above LIBOR plus a 0.03% unused line fee and will mature on October 31, 2017. In October 2016, the term of this line of credit was extended for another two (2) years until October 31, 2019. Such modification was not considered to be substantial under US GAAP. Cinemas 1,2,3 Term Loan and Line of Credit On August 31, 2016, Sutton Hill Properties LLC (“SHP”), a 75% subsidiary of RDI, refinanced its $15 million Santander Bank term loan with a new lender, Valley National Bank. This new $20 million loan is collateralized by our Cinema 1,2,3 property and bears an interest rate of 3.25% per annum, with principal installments and accruing interest paid monthly. The new loan matures on September 1, 2019, with a one-time option to extend maturity date for another year. Prior to the above refinancing, on June 27, 2016, SHP obtained approval from Santander Bank to extend the maturity of our $15 million mortgage term loan from July 1, 2016 to October 1, 2016. This term extension was not considered substantial under US GAAP. This term loan was subsequently paid prior to its extended maturity date on August 31, 2016 as a result of the refinancing discussed in the previous paragraph. In conjunction with the extension, our LOC with Santander Bank amounting to $6.0 million was deactivated effective July 1, 2016. The Company did not make any drawdown against this LOC. ﻿ Minetta and Orpheum Theatres Term Loan In May 2013, we refinanced our Liberty Theaters loan with a $7.5 million loan, secured by our Minetta and Orpheum theatres, thus releasing the Royal George Theatre from the security and leaving it unencumbered. This new loan has a maturity date of June 1, 2018, and an interest rate of 2.75% above LIBOR. We have an interest rate cap in place to limit the interest rate on the debt at 4.0%. See Note 1 6 – Derivative Instruments. Union Square Construction Financing On December 29, 2016, we closed our new construction finance facilities totaling $57.5 million to fund the non-equity portion of the anticipated construction costs of the redevelopment of our property at 44 Union Square in New York City. The combined facilities consist of $50 million in aggregate loans (comprised of three loan tranches) from Bank of the Ozarks (“BOTO”), and a $7.5 million mezzanine loan from Tammany Mezz Investor, LLC, an affiliate of Fish er Brothers. As of December 31, 2016, BOTO advanced $8.0 million to repay the existing $8.0 million loan with East West Bank. Presented in the table below is the breakdown of the Union Square construction financing as of December 31, 2016: ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿(Dollars in thousands) |  |  |  |  | Facility Limits and Advances |  |  |  |
﻿Financing Component |  | Lender |  | Facility Limit |  | Advanced-to- Date |  | Remaining Facility |  | Interest Rate(1) |  | Maturity Date(2)
﻿Mezzanine loan |  | Tammany Mezz Investor LLC |  | $ | 7,500 |  | $ | -- |  | $ | 7,500 |  | Greater of (i) 10.50% and (ii) Adjusted LIBOR + 10% |  | December 29, 2019
﻿Senior loan |  | Bank of the Ozarks |  |  | 8,000 |  |  | 8,000 |  |  | -- |  | Greater of (i) 4.75% and (ii) Adjusted LIBOR + 4.25% |  | December 29, 2019
﻿Building loan |  | Bank of the Ozarks |  |  | 31,130 |  |  | -- |  |  | 31,130 |  | Greater of (i) 4.75% and (ii) Adjusted LIBOR + 4.25% |  | December 29, 2019
﻿Project loan |  | Bank of the Ozarks |  |  | 10,870 |  |  | -- |  |  | 10,870 |  | Greater of (i) 4.75% and (ii) Adjusted LIBOR + 4.25% |  | December 29, 2019
﻿Total Union Square Financing |  |  |  | $ | 57,500 |  | $ | 8,000 |  | $ | 49,500 |  |  |  |
﻿ (1) Not to exceed the New York State maximum lawful borrowing rate, which typically is 16%. (2) Allowable for up to two (2) extension request options, one (1) year for each extension request. ﻿ Prior to the above transaction, o n June 2, 2015, we replaced our Union Square term l oan with an $8.0 million "non-revolving" LOC with East West Bank, collateralized by our Union Square property. This LOC had an interest rate of 2.95% above the 90-day LIBOR. U.S. Corporate Office Term Loan On December 13, 2016, we have obtained a ten-year $8.4 million mortgage loan on our new Los Angeles Corporate Headquarters at a fixed annual interest rate of 4.64%. Debt denominated in foreign currencies Australian NAB Corporate Loan Facility On December 23, 2015, we amended our Reading Entertainment Australia Term Loan and Corporate Credit Facility with National Australia Bank (“NAB”), from a three-tiered facility comprised of (1) the Bank Bill D iscount Facility with a limit of AU$61.3 million, an interest rate of 2.35% above the BBSY, and amortization at AU$2.0 million per year; (2) the Bill Discount Facility – Revolv ing with a limit of AU$10.0 million and an interest rate of 1.50% above the BBSY on any undrawn portion; and (3) the Bank Guarantee Facility with a facility limit of AU$5.0 million, into a $48.1 million (AU$66.5 million) Revolving Corporate Markets Loan facility. The new facility has an interest rate of 0.95% above BBSY on any outstanding borrowings and an unchanged maturity date of June 30, 2019. In addition, we will incur a facility fee of 0.95% per annum. We also have a $3.6 million (AU$5.0 million) Bank Guarantee facility at a rate of 1.90% per annum. The modifications of this particular term loan were not considered to be substantial under US GAAP. New Zealand Westpac Bank Corporate Credit Facility In October 2016, we amended our $34.8 million (NZ$50.0 million) credit facility with Westpac Bank to provide a $2.1 million (NZ$3.0 million) increase, thereby amending the total credit facility to $36.9 million (NZ$53.0 million). The increase in the credit facility was specific to the second tranche of our credit facility which is a dedicated construction facility, now of $12.5 million (NZ$18.0 million) from the original limit of $10.4 million (NZ$15.0 million). No drawdowns have been made against the second tranche to date. This modification was not considered substantial under U.S. GAAP. Previously, o n May 21, 2015, we refinanced our existing New Zealand Corporate Credit Facility with a $34.2 million (NZ$50.0 million) facility with the same bank (Westpac Bank), bearing an interest rate of 1.75% above Bank Bill Bid Rate and maturing on March 31, 2018. The facility is broken into two tranches, one a $23.9 million (NZ$35.0 million) credit facility and the second tranche for a $10.3 million (NZ$15.0 million) facility to be used for construction funding. ﻿ As of December 31, 2016, our aggregate amount of future principal debt payments is estimated as follows: ﻿
﻿ |  |  |
﻿(Dollars in thousands) |  | Future Principal Debt Payments
﻿2017 |  | $ | 567
﻿2018 |  |  | 16,453
﻿2019 |  |  | 95,793
﻿2020 |  |  | 208
﻿2021 |  |  | 218
﻿Thereafter |  |  | 35,296
﻿ Total future principal debt payments |  | $ | 148,535
The estimated amount of future principal payments in U.S. dollars is subject to change because the payments in U.S. dollars on the debt denominated in foreign currencies, which represents a significant portion of our total outstanding debt balance, will fluctuate based on the applicable foreign currency exchange rates.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration