6. Debt |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt |
The terms of our debt outstanding at December 31, 2016 and 2015 are summarized below:
Debt issuance costs of $1.6 million and $2.4 million as of December 31, 2016 and December 31, 2015, respectively, have been excluded from the table above. These debt issuance costs are presented as a direct deduction to the carrying amount of the Warehouse lines of credit on our Consolidated Balance Sheets.
In April 2015 we entered into a $100 million warehouse credit line with affiliates of Fortress Investment Group. The facility is structured to allow us to fund a portion of the purchase price of automobile contracts by borrowing from a credit facility to our consolidated subsidiary Page Six Funding LLC. The facility, which replaces a revolving credit facility that we had used since December 2010, provides for advances up to 88% of eligible finance receivables and the loans under it accrue interest at a rate of one-month LIBOR plus 5.50% per annum, with a minimum rate of 6.50% per annum. There was $64.4 million outstanding under this facility at December 31, 2016 which has a revolving period through April 2017 and an amortization period through April 2019 for any receivables pledged to the facility at the end of the revolving period.
In August 2016, we renewed our $100 million warehouse credit line with Citibank, N.A. The facility is structured to allow us to fund a portion of the purchase price of automobile contracts by borrowing from a credit facility to our consolidated subsidiary Page Eight Funding, LLC. The facility provides for effective advances up to 88.0% of eligible finance receivables. The loans under the facility accrue interest at one-month LIBOR plus 5.50% per annum, with a minimum rate of 6.25% per annum. There was $26.4 million outstanding under this facility at December 31, 2016. This facility has a revolving period through August 2018 and an amortization period through August 2019 for any receivables pledged at the end of the revolving period.
In November 2015, we entered into another $100 million warehouse credit line with Credit Suisse AG and Ares Agent Services, L.P. This facility is structured to allow us to fund a portion of the purchase price of automobile contracts by borrowing from a credit facility to our consolidated subsidiary Page Nine Funding LLC. The facility provides for advances up to 88% of eligible finance receivables and the loans under it accrue interest at a commercial paper rate plus 6.75% per annum, with a minimum rate of 7.75% per annum. There was $14.2 million outstanding under this new facility at December 31, 2016 which has a revolving period through November 2017 and an amortization period through November 2019 for any receivables pledged to the facility at the end of the revolving period.
The total outstanding debt on our three warehouse lines of credit was $105.0 million as of December 31, 2016, compared to $196.5 million outstanding as of December 31, 2015.
The costs incurred in conjunction with the above debt are recorded as deferred financing costs on the accompanying Consolidated Balance Sheets and are more fully described in Note 1.
We must comply with certain affirmative and negative covenants related to debt facilities, which require, among other things, that we maintain certain financial ratios related to liquidity, net worth and capitalization. Further covenants include matters relating to investments, acquisitions, restricted payments and certain dividend restrictions. See the discussion of financial covenants in Note 1.
The following table summarizes the contractual and expected maturity amounts of long term debt as of December 31, 2016:
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