• Filing Date: 2019-03-08
  • Form Type: 10-K
  • Description: Annual report
Revolving Credit Facility
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Revolving Credit Facility
Note 13 — Revolving Credit Facility
In December 2018, the Company entered into a three-year secured revolving credit agreement (“Credit Agreement”) with Fifth Third Bank that expires on December 5, 2021. The Credit Agreement provides the Company with borrowing capacity of up to $65,000 and bears interest at an annual rate equal to monthly-determined LIBOR plus a margin based on the type of collateral used to secure each borrowing. The interest payment is due quarterly in arrears on January 1, April 1, July 1, and October 1. The Credit Agreement contains affirmative and negative covenants as well as customary events of defaults. Under the terms of the Credit Agreement, the Company must comply with certain financial and 
 covenants and agree to pay a fee equal to the product of the unused line fee rate and the average of the daily unused available credit balances. The unused line fee rate is determined monthly based on the average daily deposit balances. At December 31, 2018, the Company was in compliance with all required covenants, and there were no outstanding loans.
In connection with FMJV’s December 15, 2016 distribution of its 90% ownership interest in FMKT MGA as described in 
Investment in Unconsolidated Joint Venture
 in Note 5 — “Investments,” the Company assumed a liability to repay $8,214 under a secured credit agreement. The agreement provided that the Company could borrow up to $9,550. The Company had an option to convert the outstanding balance at the initial maturity date into a three-year mortgage loan payable in 36 monthly installments at a fixed interest rate. On December 15, 2016, the Company drew an additional $1,193 from this credit line, which was used towards the purchase of the 10% noncontrolling interest as described in 
Pineda Landings - Melbourne, Florida
 in Note 7 — “Business Acquisitions.” In February 2017, the Company exercised the conversion option under the credit agreement. See 
3.95% Promissory Note
 in Note 14 — “Long-Term Debt” for additional information. For the year ended December 31, 2016, interest expense for this revolving credit facility totaled $235, of which $11 related to the period from December 15 to 31, 2016.