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Long-Term Debt

12 Months Ended

Dec. 31, 2018

4 – LONG-TERM DEBT

On November 6, 2015, PWRS borrowed $10,150,000 pursuant to a bond offering (the “PWRS Bonds”). The PWRS Bonds PWRS Bonds are secured by land owned by PWRS and have a total obligation of $10,150,000. The PWRS Bonds carry a fixed annual interest rate of 4.34% and matures in 2034. During 2015, the Trust capitalized approximately $441,000 of expenses related to the PWRS Bonds of which approximately $97,000 was paid in cash and approximately 344,000 was incurred through issuance of debt. This amount is amortized over the life of the PWRS Bonds. As of December 31, 2018 and 2017, the balance of the PWRS Bonds was approximately $8,870,000 (net of unamortized debt costs of approximately $348,000) and $9,178,000 (net of unamortized debt costs of approximately $370,000), respectively. For each of 2018 and 2017, the Trust amortized approximately $22,000, respectively, of this capitalized debt cost which is included in the amortization of debt costs on the consolidated statements of cash flows.

On July 5, 2013, PWSS borrowed $750,000 from a regional bank (the “PWSS Term Loan”) to refinance a bridge loan that had been extended by HBP in connection with PWSS’ acquisition of leased property in December 2012. The PWSS Term Loan carries a fixed interest rate of 5.0%, a term of 10-years and amortizes based on a twenty-year principal amortization schedule. In addition to being secured by PWSS’ real estate assets, the term loan is secured by a parent guarantee from the Trust. The balance of the PWSS Term Loan as of December 31, 2018 and December 31, 2017 is approximately $605,000 (net of approximately $12,000 of capitalized debt costs which are being amortized over the life of the financing) and $626,000 (net of approximately $15,000 of capitalized debt costs which are being amortized over the life of the financing), respectively.

On December 31, 2012, as part of the Salisbury land acquisition, PWSS assumed existing municipal financing (“Municipal Debt”). The Municipal Debt has approximately 15 years remaining. The Municipal Debt has a simple interest rate of 5.0% that is paid annually, with the next payment due February 1, 2019. The balance of the Municipal Debt as of December 31, 2018 and 2017 is approximately $83,000 and $90,000 respectively.

The approximate amount of principal payments remaining on Power REIT’s long-term debt as of December 31, 2018 is described below:

	Total Debt
2019		389,746
2020		414,239
2021		441,891
2022		472,663
2023		955,181
Thereafter		7,243,786
Long term debt		9,917,506