Revolving Line of Credit and Senior Notes Payable

9 Months Ended

Sep. 30, 2014

Senior Notes [Member]

Revolving Line of Credit and Senior Notes Payable

13. Senior Notes Payable

In August 2012 the Trust issued a total $86,250,000 of its Notes at an issue price of 100% of par value. The Notes mature on August 15, 2022 and bear interest at the rate of 7.75% per year, payable quarterly in arrears. The Trust may redeem the Notes, in whole or in part, at any time, or from time to time, on or after August 15, 2015 at a redemption price in cash equal to 100% of the principal amount redeemed plus accrued and unpaid interest.

The Notes rank senior to all of the Trust’s future indebtedness that by its terms is expressly subordinate to the Notes, effectively making the Notes senior to all of the Trust’s existing and future unsecured senior indebtedness to the extent of the collateral securing the Notes and pari passuthereafter. The Notes are structurally subordinated to all of the existing and future liabilities of Winthrop’s subsidiaries, including the Operating Partnership, but will have a security interest in the promissory note of the Operating Partnership to the Trust, which promissory note is pari passuwith all existing and future unsecured senior indebtedness of the Operating Partnership.

As of July 31, 2014, pursuant to its securities repurchase plan discussed in Note 7, the Trust has acquired $11,178,000 of its outstanding Notes in open market transactions for an aggregate price of $11,742,000. In connection with the acquisitions, the Trust recorded a $564,000 loss on extinguishment of debt which is included in income from continuing operations. As of September 30, 2014 there were $75,072,000 of Notes outstanding. During October 2014 the Trust acquired an additional $557,000 of its outstanding Notes in open market transactions for an aggregate price of $583,000.

Revolving Credit Facility [Member]

Revolving Line of Credit and Senior Notes Payable

12. Revolving Line of Credit

The Trust had a revolving line of credit in the principal amount of $50,000,000 which bore interest at LIBOR plus 3% and had a maturity date of March 3, 2014 with an option to extend the maturity date to March 3, 2015. The Trust elected not to exercise its option to extend the revolving line of credit.

The outstanding balance under the facility was $0 at December 31, 2013. The Trust was required to pay a commitment fee on the unused portion of the line, which amounted to approximately $29,000 for the period from January 1, 2014 through March 3, 2014, and approximately $44,000 and $131,000 for the three and nine months ended September 30, 2013, respectively.