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Long-Term Debt
12 Months Ended
Dec. 31, 2016
Long-Term Debt  
Long-Term Debt

NOTE 4 - Long-Term Debt

At December 31, 2016 and 2015, long-term debt consisted of the following:

 

 

 

 

 

 

 

 

 

    

2016

    

2015

 

 

 

 

 

 

 

 

 

Sparkasse Seligenstadt Loan (1)

 

$

3,324

 

$

3,638

 

Sparkasse Hann. Münden Loan (2)

 

 

1,933

 

 

2,112

 

Freizeit Auefeld Seller Loan (3)

 

 

2,006

 

 

2,285

 

Kreissparkasse Köln Loan (4)

 

 

4,215

 

 

 

 

 

 

 

11,478

 

 

8,035

 

 

 

 

 

 

 

 

 

Less current portions:

 

 

 

 

 

 

 

Sparkasse Seligenstadt Loan

 

 

216

 

 

216

 

Sparkasse Hann. Münden Loan

 

 

113

 

 

113

 

Freizeit Auefeld Seller Loan

 

 

213

 

 

213

 

Kreissparkasse Köln Loan

 

 

290

 

 

 

 

 

 

 

832

 

 

542

 

 

 

 

 

 

 

 

 

 

 

$

10,646

 

$

7,493

 


(1)

On September 9, 2014, the Company received a €3,600, or approximately $3,800,  15-year, amortized loan granted by a local German bank, Bank Sparkasse Langen-Seligenstadt (the “Sparkasse Seligenstadt Loan”) to purchase the Hotel Columbus.  The loan terms provide for a fixed interest rate of 3.1% for the first ten years, followed by a prevailing market-based fixed rate for this type of commercial loan for the remaining five years of the term.  The loan is secured by the Hotel Columbus’ assets as well as a cash deposit of €300, or $316, equaling approximately one year’s principal and interest payments and is held in a savings account with, and a mortgage on the hotel in favor of, the lender.  The loan terms require monthly payments of principal and interest at the end of each month and the loan will mature on September 9, 2029.

(2)

On June 16, 2015, as part of its Hotel Freizeit Auefeld acquisition, TWC assumed five bank loans from Bank Sparkasse Hann. Münden (the “Sparkasse Hann. Münden Loan”), aggregating €2,018, or approximately $2,127, with an average fixed interest rate of 4.94%. The assumed bank debt was converted in November 2015 to a single loan with the same lender, at 2.99% annual interest, fixed for 10 years, and amortized over 15 years. The loan is secured by the Hotel Freizeit Auefeld’s assets as well as a cash deposit of €250, approximately $264, equaling approximately one year’s principal and interest payments and is held in a savings account with, and a mortgage on the hotel in favor of, the lender. The loan terms required monthly payments of principal and interest at the end of each month and the loan will mature on November 30, 2030.

(3)

On June 16, 2015, as part of its Hotel Freizeit Auefeld acquisition, TWC was also granted a seller-financed loan of €2,232, or approximately $2,353 (the “Freizeit Auefeld Seller Loan”), with terms of 3.0% annual fixed interest, to be repaid monthly over 10 years, with a first two-month no-interest grace period. The loan is also secured by the Hotel Freizeit Auefeld’s assets.

(4)

On December 21, 2016, the Company signed for a €4,000, or $4,200,  13-year, amortized loan granted by a local German bank, Bank Kreissparkasse Köln (the “Kreissparkasse Köln Loan”) to purchase the Hotel Kranichhöhe.  The loan was funded on January 25, 2017.  In December 2016, the Company advanced €4,000 of the loan, or $4,215, in addition to its equity investment, for the purchase and recognized the loan proceeds as a receivable.  The loan terms provide for a fixed interest rate of 1.95% for the first ten years, followed by a prevailing market-based fixed rate for this type of commercial loan for the remaining three years of the term.  The loan is secured by the Hotel Kranichhöhe’s assets as well as a cash deposit of €709, or $747, equaling approximately two years’ principal and interest payments, which will be deposited in January 2017 and is to be held in a savings account with, and a mortgage on the hotel in favor of, the lender.  The loan terms require monthly payments of principal and interest at the end of each month and the loan will mature on November 21, 2029.

Principal payments due on long-term debt are as follows:

 

 

 

 

 

Year ending December 31,

    

 

 

 

2017

 

$

832

 

2018

 

 

855

 

2019

 

 

878

 

2020

 

 

902

 

2021

 

 

926

 

Thereafter

 

 

7,085

 

 

 

$

11,478