(11) LONG-TERM DEBT
Long-term debt as of March 31 consists of the following (in thousands):
2019 2018
— 17,668
$14,700,000 term loan payable to bank, interest based upon the LIBOR in effect
plus 1.70% (4.19% at March 31, 2019) payable in monthly amortizing payments for
eight years starting December 2012, the balance remaining due December 2019,
secured by a deed of trust on a building and assignment of rents 12,089 12,540
$8,000,000 term loan payable to bank interest based upon the LIBOR in effect
at month-end plus 1.25% (3.74% at March 31, 2019) payable in monthly payments
of $100,437 for five years starting December 1, 2015, the remaining balance due
November 1, 2020, which is unsecured — 5,378
573 3,991
12,662 39,577
(12,662) (5,002)
— 34,575
$75,000,000 revolving note payable to bank, interest based upon the LIBOR in
effect as draws are made plus 0.3% (2.79% at March 31, 2019), collateralized by
marketable securities, commitment expires June 1, 2020
$
$10,000,000 term loan payable to bank, interest based upon the LIBOR in
effect plus 1.25% (3.74% at March 31, 2019) payable in monthly amortizing
payments for three years starting May 2016, the balance remaining due
May 2019, which is unsecured
Less current maturities
$
Scheduled principal payments on long-term debt are as follows (in thousands):
2020
$
12,662
2021 —
2022 —
2023 —
2024 —
Thereafter —
TOTAL
$
12,662
The Corporation’s revolving note agreement requires collateral of marketable securities. Collateral value is determined
by multiplying the applicable advance percentage provided in the collateral table for each type of eligible collateral
pledged to the bank.
The $14,700,000 term loan payable has certain financial loan covenants that consists of a minimum basic fixed charge
coverage ratio, unencumbered liquid assets, and debt service coverage ratio.
On December 1, 2012, through an interest rate swap agreement, the Corporation changed the interest rate on the
$14,700,000 term loan to fix the floating LIBOR. Through December 1, 2019, the fixed rate is 1.716%. The swap’s fair
value of the estimated termination asset of $58,000 at March 31, 2019 is included in other assets increasing interest
expense by $56,000 in 2019.
66
BBNC FY2019 ANNUAL REPORT