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ValleyCrest Holding Co. and Subsidiaries
<br />Notes to Consolidated Financial Statements (continued)
<br />8. Long -Term Debt
<br />Long -term debt is summarized as follows as of April 30, 2008:
<br />$285.0 million seven year term loan, secured by the assets of the
<br />Company, maturing October 2013
<br />$282,150,000
<br />$15.7 million seven year incremental term loan, secured by the assets
<br />of the Company, maturing October 2013
<br />15,582,000
<br />$60.0 million revolving credit facility, secured by the assets of the
<br />Company, expiring October 2012
<br />—
<br />$7.0 million promissory note, secured by deed of trust on the
<br />Company's golf course property and improvements, bearing interest
<br />at a variable rate, 6.5% at April 30, 2008, payable in monthly
<br />principal and interest payments through May 2010
<br />6,682,000
<br />$5.8 million promissory note, secured by deed of trust on the
<br />Company's golf course property and improvements, bearing interest
<br />at 10% per annum, payable in full upon maturity in May 2010
<br />5,601,000
<br />$200,000 promissory note, unsecured, payable in full May 2009
<br />200,000
<br />$1.5 million promissory note, unsecured, imputed interest at 7.5 %,
<br />payable in full upon maturity in September 2010
<br />1,273,000
<br />311,488,000
<br />Less current maturities
<br />3,080,000
<br />$ 308,408,000
<br />The $285.0 million secured term loan under the Credit and Guaranty Agreement, dated as of
<br />October 4, 2006, as amended, requires the Company to make quarterly principal payments equal
<br />to 25 basis points of the original principal amount commencing July 1, 2007. In addition, the
<br />Company must maintain a minimum interest coverage ratio and cannot exceed a stated leverage
<br />ratio. There is also a maximum amount that can be incurred for capital expenditures during each
<br />year of the term loan. The interest rate on the term loan is the LIBOR rate plus 200 basis points
<br />(5.08% at April 30, 2008). In connection with the term loan, the Company also established a $60
<br />million revolving credit facility. The interest rate on the outstanding portion of the revolver is
<br />either the LIBOR rate plus 250 basis points or the prime rate plus 100 basis points. Under the
<br />credit facility, the Company must also pay an unused commitment fee equal to 50 basis points
<br />and a letter of credit fee, for any outstanding letters of credit under the facility, equal to 250 basis
<br />points. At April 30, 2008, the Company had $17,250,000 of outstanding letters of credit.
<br />(b -11 -V1
<br />-.la1a
<br />ValleyCrast Lar�dscape P1 aii-it. 16
<br />16430 NW 127th A1,ve.
<br />Mann, FL 3301 8 -1 051
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