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Debt
6 Months Ended
Mar. 31, 2015
Debt [Abstract]  
DEBT

NOTE 5 – DEBT

 

As of March 31, 2015, total loans payable represents a $2,461,669 term loan at an annual interest rate of 4.90%, maturing November 29, 2016, a $2,700,000 interest only term loan at a variable annual interest rate of prime plus 0.75% with a floor of 4.50%, maturing on March 9, 2017 and $60,000,000 drawn down on the Company’s $60,000,000 unsecured line of credit, maturing on June 30, 2016 at a variable interest rate of LIBOR plus 175 basis points to 250 basis points, depending on the Company’s leverage ratio. The unsecured line of credit has a one year extension option, which if exercised, brings the maturity to June 30, 2017. In addition, the Company has a $20,000,000 accordion feature bringing the total potential availability under the unsecured line of credit (subject to various conditions as specified in the loan agreement) up to $80,000,000.

 

As of March 31, 2015, the interest rate of the $2,700,000 loan was 4.50% and the interest rate of the $60,000,000 unsecured line of credit was LIBOR plus 185 basis points, which was 2.00%. The $2,700,000 term loan is secured by 500,000 shares of UMH common stock with a fair value of $5,035,000 as of March 31, 2015 and the $2,461,669 term loan is secured by 200,000 shares of UMH 8.25% Series A preferred stock with a fair value of $5,188,000 as of March 31, 2015.

 

In connection with six of the seven properties acquired during the six months ended March 31, 2015 which are located in Lindale (Tyler), TX; Sauget (St. Louis, MO), IL; Kansas City, MO; Frankfort, KY; Jacksonville, FL and Monroe (Cincinnati), OH (as described in Note 3), the Company entered into six mortgages originally totaling $73,186,828.

 

On December 31, 2014, the Company fully prepaid a mortgage originally set to mature March 1, 2015 in the principal amount of $2,211,518. This mortgage was secured by the Company’s 68,385 square foot facility located in Tampa, FL.

 

During the six months ended March 31, 2015, the Company drew down $40,000,000 on its unsecured line of credit.