• Filing Date: 2020-03-06
  • Form Type: 10-K
  • Description: Annual report
v3.19.3.a.u2
Revolving Credit Facility
12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Revolving Credit Facility

Note 12 -- Revolving Credit Facility

The Company has 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 non-financial 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.

In February 2019, the Company borrowed $8,000 to fund the purchase of the undeveloped land as described in Note 5 -- “Investments” under Real Estate Investments. The Company incurred and capitalized $459 of issuance costs in other assets. Thereafter, the Company borrowed an additional amount of $1,750 for real estate investment purposes. For the year ended December 31, 2019, interest expense totaled $452, which included $157 of amortized issuance costs. At December 31, 2019, the Company was in compliance with all required covenants, and there were $9,750 of borrowings outstanding.