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Line of Credit (Tables)
9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Activity Involving Line of Credit

Activity involving the line of credit for the nine months ended September 30 is presented in the following table ($ in thousands).

 

 

 

2023

 

 

2022

 

Balance, January 1

 

$

10,000

 

 

$

 

Draws

 

 

 

 

 

11,000

 

Repayments

 

 

(2,590

)

 

 

(1,000

)

Balance, September 30,

 

$

7,410

 

 

$

10,000

 

Line of credit - average daily balance

 

$

9,489

 

 

$

7,933

 

The 2022 credit agreement provides for customary financial and borrowing base reporting by RMI VIII to WAB and specifies that the partnership shall maintain (i) minimum tangible net worth of $50 million, net of amounts due from related companies; (ii) debt service coverage ratio at all times of not less than 2.00 to 1.00; and (iii) loan payment delinquency of less than ten percent (10.0%) at calendar quarter-end, calculated as the principal of loans with payments over 61-days past due as determined by the lending bank’s guidance, less loan loss allowances, divided by total principal of the partnership’s loans. The loan agreement provided that in the event the loan payment delinquency rate exceeded 10.0% as of the end of any quarter (36.6% at September 30, 2023), WAB would cease to make any further advances until the company is compliant with the covenant but agreed not to accelerate repayment of the loan.