XML 67 R18.htm IDEA: XBRL DOCUMENT
v2.4.1.9

LONG-TERM DEBT | 12 Months Ended
--- | ---
Sep. 30, 2014
LONG-TERM DEBT |
LONG-TERM DEBT | 9.LONG-TERM DEBT A summary of Barnwell’s long-term debt is as follows:
|  | September 30, |
|  | 2014 |  | 2013 |
Canadian revolving credit facility |  |  | $ | 7,000,000 |  |  |  | $ | 12,000,000 |  |
Real estate loan |  |  | 4,099,000 |  |  |  | 4,640,000 |  |
|  |  | 11,099,000 |  |  |  | 16,640,000 |  |
Less current portion |  |  | (4,449,000 | ) |  |  | (5,240,000 | ) |
Total long-term debt |  |  | $ | 6,650,000 |  |  |  | $ | 11,400,000 |  |
Canadian revolving credit facility On April 29, 2014, Barnwell’s credit facility at Royal Bank of Canada was amended and renewed. The amendment, among other things, provides for a decrease in the aggregate principal amount of the revolving credit facility to $11,800,000 Canadian dollars, or US$10,528,000 at the September 30, 2014 exchange rate, from $20,000,000 Canadian dollars. A portion of the decrease in the facility relates to the decrease in security resulting from the sales of oil and natural gas properties discussed in Note 18. The other material terms of the credit facility remain unchanged. Borrowings under this facility were $7,000,000 at September 30, 2014 and unused credit available was $3,273,000 after consideration of issued letters of credit totaling $255,000. The interest rate on the facility at September 30, 2014 was 2.66%. The facility is available in U.S. dollars at LIBOR plus 2.50%, at Royal Bank of Canada’s U.S. base rate plus 1.50%, or in Canadian dollars at Royal Bank of Canada’s prime rate plus 1.50%. A standby fee of 0.6250% per annum is charged on the unused facility balance. Under the financing agreement with Royal Bank of Canada, the facility is reviewed annually, with the next review planned for April 2015. Subject to that review, the facility may be renewed for one year with no required debt repayments or converted to a two-year term loan by the bank. If the facility is converted to a two-year term loan, Barnwell has agreed to the following repayment schedule of the then outstanding loan balance: first year of the term period – 20% (5% per quarter), and in the second year of the term period – 80% (5% per quarter for the first three quarters and 65% in the final quarter). Based on the terms of this agreement, if Royal Bank of Canada were to convert the facility to a two-year term loan upon its next review in April 2015, Barnwell would be obligated to make quarterly principal and interest repayments beginning in July 2015. As such, one quarterly repayment of 5% would be due within one year of September 30, 2014 and accordingly, we have included $350,000 in the current portion of long-term debt. Barnwell has the option to change the currency denomination and interest rate applicable to the loan at periodic intervals during the term of the loan. The facility is guaranteed by Barnwell and is collateralized by a general security agreement on all of the assets of Barnwell’s oil and natural gas segment. No compensating bank balances are required for this facility. Real estate loan Barnwell, together with its real estate joint venture, Kaupulehu 2007, has a non-revolving real estate loan with a Hawaii bank. Principal and interest are paid monthly and are determined based on a loan amortization schedule. The monthly payment will change as a result of an annual change in the interest rate, the sale of the house or the sale of a residential parcel. The interest rate adjusts each April for the remaining term of the loan to the lender’s then prevailing interest rate for similarly priced commercial mortgage loans or a floating rate equal to the lender’s base rate. The interest rate at September 30, 2014 was 3.41%. Any unpaid principal balance and accrued interest will be due and payable on April 1, 2018. The loan is collateralized by, among other things, a first mortgage on Kaupulehu 2007’s lots together with all improvements thereon. Kaupulehu 2007 will be required to make a principal payment upon the sale of the house or a residential parcel in the amount of the net sales proceeds of the house or residential parcel; the loan agreement defines net sales proceeds as the gross sales proceeds for the house or residential parcel, less reasonable commissions and normal closing costs. The loan agreement contains provisions requiring us to maintain compliance with certain covenants including a consolidated debt service coverage ratio and a consolidated total liabilities to tangible net worth ratio. The home collateralizing the loan is currently available for sale; therefore, the entire balance outstanding at September 30, 2014 under the term loan has been classified as a current liability. Land investment loan On November 27, 2013, Barnwell, through affiliated entities, entered into a non-revolving loan with a Hawaii bank for $5,000,000 to fund the acquisition of interests in the Kukio Resort land development partnerships and certain acquisition costs. Barnwell repaid the loan in full on September 25, 2014. Combined Maturities Combined maturities of borrowings are as follows based on the assumption that Kaupulehu 2007’s home is sold during fiscal 2015 and that Royal Bank of Canada does not renew our facility upon the next review in April 2015 and the facility is therefore converted to a term loan:
Fiscal year ending |  |  |
2015 |  | $ | 4,449,000 |
2016 |  | 1,400,000 |
2017 |  | 5,250,000 |
Total |  | $ | 11,099,000 |

X
- Details
Name: | us-gaap_LongTermDebtAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration