Debt

9 Months Ended

Sep. 30, 2011

Debt [Abstract]

Debt

Note 6. Debt:

Information on our debt was as follows:

											Weighted
											Average
											Interest Rate
					Weighted Average						on Underlying
	Carrying Value (1)				Coupon Rate at						Loans at
	September 30,		December 31,		September 30,			December 31,			September 30,
	2011		2010		2011			2010			2011
	(Dollars in thousands, except footnotes)
Structured notes payable:
2003 Joint Venture	$	5,572	$	7,094		2.87	%		2.80	%		4.24	%
2000 Joint Venture (2)		8,685		11,724		7.28	%		7.28	%		9.47	%
1998 Partnership (3)		2,744		3,339		2.25	%		2.25	%		5.19	%
		17,001		22,157
Junior subordinated notes		27,070		27,070		3.50	%		3.54	%	NA
Revolving credit facility (4)		14,800		13,800		2.49	%		3.25	%	NA
Debentures payable (5)		13,180		8,177		4.95	%		5.90	%	NA
Secured borrowings — government guaranteed loans:
Loans sold for a premium and excess spread		25,967		15,664		3.79	%		3.87	%		5.95	%
Loans sold for excess spread		6,010		6,101		1.58	%		1.58	%		5.96	%
		31,977		21,765
Debt	$	104,028	$	92,969

(1)	The face amount of debt as of September 30, 2011 and December 31, 2010 was $104,038,000 and $92,982,000, respectively.
(2)	We exercised our “clean-up call” provision to redeem the 2000 Joint Venture notes and will repay them on November 15, 2011 using our revolving credit facility.
(3)	We exercised our “clean-up call” provision to redeem the 1998 Partnership notes and repaid these notes on October 3, 2011 using our revolving credit facility.
(4)	We amended our revolving credit facility in June 2011. The maturity date was extended to June 30, 2014 and our interest rate was reduced to prime less 50 basis points or the 30-day LIBOR plus 2%, at our option. Borrowings under the amended facility are unsecured.
(5)	One of our SBIC subsidiaries issued $5 million of debentures in September with an interest rate of 2.877% plus an annual fee of 0.515%. The debentures mature in 10 years and have semi-annual interest only payments until maturity.

Principal payments on our debt at September 30, 2011 were as follows:

			Structured
Twelve			Notes and
Months Ending			Secured		All Other
September 30,	Total		Borrowings (1)		Debt (2)
	(In thousands)
2012	$	17,819	$	17,819	$	—
2013		846		846		—
2014		19,863		873		18,990
2015		4,904		904		4,000
2016		936		936		—
Thereafter		59,670		27,600		32,070
	$	104,038	$	48,978	$	55,060

(1)

Principal payments are generally dependent upon cash flows received from the underlying loans. Our estimate of their repayment is based on scheduled principal payments on the underlying loans. Our estimate will differ from actual amounts to the extent we experience prepayments and/or loan losses. No payment is due on the structured notes or secured borrowings unless payments are received from the borrowers on the loans underlying them. The 1998 Partnership notes were repaid on October 3, 2011; therefore, they are shown above in the twelve months ending September 30, 2012. The 2000 Joint Venture notes will be repaid on November 15, 2011; therefore, they are shown above in the twelve months ending September 30, 2012. We expect to repay the 2003 Joint Venture notes during the first quarter of 2012; therefore, they are shown above in the twelve months ending September 30, 2012.

(2)

Represents the revolving credit facility, junior subordinated notes and debentures payable.