Note 7 - Debt

3 Months Ended

Apr. 30, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

7. DEBT

	April 30, 2019			January 31, 2019
	(in thousands)
Note payable	$	13,231		$	13,358
Less current maturities		(487	)		(487	)
Less loan origination costs, net		(32	)		(35	)
Long-term debt	$	12,712		$	12,836

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

2.48%

at

April 30, 2019.

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

April 30, 2019

was

$13.2

million.