DEBT

	January 31,
	2018				2017
	(in thousands)
Note payable	$	13,825		$	14,269
Less current maturities		(466	)		(446	)
Less loan origination costs, net		(46	)		(56	)
Long-term debt	$	13,313		$	13,767

Note Payable

Effective

May 30, 2012,

QAD Ortega Hill, LLC entered into a variable rate credit agreement (the

“2012

Mortgage”) with Rabobank, N.A., to refinance a pre-existing mortgage. The

2012

Mortgage has an original principal balance of

$16.1

million and bears interest at the

one

month LIBOR rate plus

2.25%.

One month LIBOR was

1.56

% at

January 31, 2018.

The

2012

Mortgage matures in

June 2022

and is secured by the Company

’s headquarters located in Santa Barbara, California. In conjunction with the

2012

Mortgage, QAD Ortega Hill, LLC entered into an interest rate swap with Rabobank, N.A. The swap agreement has an initial notional amount of

$16.1

million and a schedule matching that of the underlying loan that synthetically fixes the interest rate on the debt at

4.31%

for the entire term of the

2012

Mortgage. The terms of the

2012

Mortgage provide for QAD Ortega Hill, LLC to make net monthly payments of

$88,100

consisting of principal and interest and

one

final payment of

$11.7

million. The unpaid balance as of

January 31, 2018

was

$13.8

million.

The Company had a U.S. line of credit facility with Rabobank that permitted unsecured short-term borrowings of up to

$20

million. The Company did

not

draw on the line of credit during any of the last

three

fiscal years. The line of credit expired in

July, 2017

and was

not

renewed.