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Debt

3 Months Ended

Mar. 31, 2013

Note 4. Debt:

Information on our debt was as follows:


					Weighted Average Coupon Rate at
	March 31, 2013		December 31, 2012		March 31, 2013			December 31, 2012
	(Dollars in thousands, except footnotes)
Secured borrowings—government guaranteed loans:
Loans sold for a premium and excess spread—principal	$	31,279	$	32,062		4.09	%		4.09	%
Loans sold for a premium and excess spread—deferred premiums		2,998		3,099		NA			NA
Loans sold for excess spread		5,816		5,847		1.58	%		1.58	%

		40,093		41,008
Junior subordinated notes		27,070		27,070		3.56	%		3.61	%
Debentures payable (1)		23,190		17,190		4.06	%		4.47	%
Revolving credit facility (2)		15,200		11,900		2.64	%		2.30	%

Debt	$	105,553	$	97,168

(1)

Our SBIC subsidiaries issued a total of $6.0 million of debentures in March 2013 with an interest rate of 2.351% plus an annual fee of 0.515%. The debentures mature in 10 years and have semi-annual interest only payments until maturity.

(2)

Proceeds on the revolving credit facility were $15,800,000 and $8,200,000 during the three months ended March 31, 2013 and 2012, respectively. Repayments on the revolving credit facility were $12,500,000 and $10,300,000 during the three months ended March 31, 2013 and 2012, respectively.

Principal payments on, and estimated amortization of, our debt at March 31, 2013 was as follows:


			Secured Borrowings
Twelve Months Ending March 31,	Total		Principal (1)		Deferred Premiums (2)		All Other Debt (3)
	(In thousands)
2014	$	5,440	$	1,098	$	152	$	4,190
2015		20,488		1,136		152		19,200
2016		1,327		1,175		152		—
2017		1,369		1,217		152		—
2018		1,413		1,261		152		—
Thereafter		75,516		31,208		2,238		42,070

	$	105,553	$	37,095	$	2,998	$	65,460

(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 liquidations or charge-offs. No payment is due unless payments are received from the borrowers on the underlying loans.

(2)

Represents cash premiums collected on loans sold for excess spread and a cash premium of 10% which are amortized as a reduction to interest expense over the life of the loan. Our estimate of their amortization will differ from actual amounts to the extent we experience prepayments and/or loan liquidations or charge-offs.

(3)

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

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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