(6)

NOTES PAYABLE

Notes payable consist of the following (in thousands):

	October 31,		April 30,
	2014		2014
Credit facilities:
Media Services operations	$	2,582	$	1,059
Real estate operations		14,418		15,141
Other notes payable		4,345		4,404
	$	21,345	$	20,604

Media Services Credit Facility

The Media Services Credit Facility provides the Media Services business with a revolving credit loan and letter of credit facility of up to $15,000,000 that matures on May 12, 2015. At October 31, 2014, the borrowing availability under the Media Services Credit Facility was $7,842,000, and there was $2,582,000 outstanding against this availability. The highest amount borrowed during the first six months of 2015 was $6,569,000 and the interest rate at October 31, 2014 was 3.16%. The borrowers’ obligations under the Media Services Credit Facility are secured by substantially all of their assets other than real property.

Real Estate Loan

AMREP Southwest has a loan with a company owned by Nicholas G. Karabots, a significant shareholder of the Company and in which another director of the Company has a 20% participation. The loan had an outstanding principal amount of $14,418,000 at October 31, 2014, is scheduled to mature on December 1, 2017, bears interest payable monthly at 8.5% per annum, and is secured by a mortgage on all real property of AMREP Southwest in Rio Rancho and by a pledge of the stock of its subsidiary, Outer Rim Investments, Inc. The total book value of the real property collateralizing the loan was approximately $66,954,000 as of October 31, 2014. No payments of principal are required until maturity, except that the following amounts are required to be applied to the payment of the loan: (a) 25% of the net proceeds from any sales of real property by AMREP Southwest and (b) 25% of any royalty payments received by AMREP Southwest under an oil and gas lease. See further detail regarding the oil and gas lease in Note 7.

Other Notes Payable

Other notes payable consist of a mortgage note payable with an outstanding principal balance of $4,148,000 on a warehouse with a maturity date of February 2018 and an interest rate of 6.35%, and $197,000 of an asset financing loan with a maturity date of December 2015 and an interest rate of 9.0%. The amount of Other notes payable due within one year totals $222,000.