Debt and Finance Lease Obligations

6 Months Ended

Sep. 28, 2019

Debt and finance lease obligations primarily consisted of amounts related to loans sold that did not qualify for loan sale accounting treatment and lease obligations in which it is expected that the Company will obtain ownership of a leased asset at the end of the lease term. The following table summarizes debt and finance lease obligations (in thousands):



	September 28, 2019		March 30, 2019
2007-1 securitized financings (acquired as part of the Palm Harbor transaction)	$	—	$	18,364
Secured credit facilities	10,974		11,289
Other secured financings	4,217		4,487
Finance lease liabilities	1,043		—
	$	16,234	$	34,140

Prior to the Company's acquisition of Palm Harbor and CountryPlace, CountryPlace completed an initial securitization (2005-1) and a second securitized borrowing (2007-1). The Company repurchased these loan portfolios in January 2019 and August 2019, respectively, eliminating the related securitized financings.

Acquired securitized financings were recorded at fair value at the time of acquisition, which resulted in a discount, and subsequently are accounted for in a manner similar to FASB Accounting Standards Codification ("ASC") 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality to accrete the discount.

Prior to the repurchase, over the life of the loans, the Company estimated cash flows expected to be paid on the securitized financings. The Company evaluated at the balance sheet date whether the present value of its securitized financings, determined using the effective interest rate, had increased or decreased. The amount of accretable yield recognized on a prospective basis over the securitized financing's remaining life was adjusted by the present value of any subsequent change in cash flows expected to be paid.

The changes in accretable yield on securitized financings were as follows (in thousands):



	Three Months Ended						Six Months Ended
	September 28, 2019			September 29, 2018			September 28, 2019			September 29, 2018
Balance at the beginning of the period	$	206		$	2,697		$	491		$	3,515
Accretion	(206		)	(774		)	(577		)	(1,577		)
Adjustment to cash flows	—			(89		)	86			(104		)
Balance at the end of the period	$	—		$	1,834		$	—		$	1,834

The Company has entered into secured credit facilities with independent third party banks with draw periods from one to fifteen months and maturity dates of ten years after the expiration of the draw periods. This draw down period expired in September 2019. The proceeds are used by the Company to originate and hold consumer home-only loans secured by manufactured homes, which are pledged as collateral to the facilities. Upon completion of the draw down period, the facilities are converted into an amortizing loan based on a 20 or 25 year amortization period with a balloon payment due upon maturity. The maximum advance for loans under this program is 80% of the outstanding collateral principal balance, with the Company providing the remaining funds. As of September 28, 2019, the outstanding balance of the converted loans was $11.0 million at a weighted average interest rate of 4.91%.

See Note 9 for further discussion of the finance lease obligations.