Annual report pursuant to Section 13 and 15(d)

DEBT OBLIGATIONS

v3.19.1
DEBT OBLIGATIONS
 12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
DEBT OBLIGATIONS
DEBT OBLIGATIONS

The following table presents certain information regarding the Company's debt obligations:
 
December 31, 2018
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Obligation/Collateral
Month Issued
 
Outstanding Face Amount
 
Carrying Value
 
Final Stated Maturity
 
Weighted Average Coupon (A)
 
Weighted Average Funding Cost (B)
 
Weighted Average Life (Years)
 
Face Amount of Floating Rate Debt
 
Outstanding Face Amount
 
Carrying Value
Credit Facilities and Capital Leases
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional Golf term loan (C)
Jun 2016
 
—

 
—

 
—%
 
—%
 
—
%
 
0
 
—

 
102,000

 
99,931

Vineyard II
Dec 1993
 
200

 
200

 
Dec 2043
 
2.36%
 
2.36
%
 
25.0
 
200

 
200

 
200

Capital Leases (Equipment)
June 2014 - Dec 2018
 
15,778

 
15,778

 
May 2019 - June 2024
 
3.00% to 16.16%
 
6.75
%
 
3.1
 
—

 
16,626

 
16,626

 
 
 
15,978

 
15,978

 
 
 
 
 
6.69
%
 
3.4
 
200

 
118,826

 
116,757

Less current portion of obligations under capital leases
 
 
5,489

 
5,489

 
 
 
 
 
 
 
 
 
 
 
4,652

 
4,652

Credit facilities and obligations under capital leases - noncurrent
 
 
10,489

 
10,489

 
 
 
 
 
 
 
 
 
 
 
114,174

 
112,105

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Junior subordinated notes payable (D)
Mar 2006
 
51,004

 
51,200

 
Apr 2035
 
LIBOR + 2.25%
 
4.73
%
 
16.3
 
51,004

 
51,004

 
51,208

Total debt obligations
 
 
$
66,982

 
$
67,178

 
 
 
 
 
5.20
%
 
13.2
 
$
51,204

 
$
169,830

 
$
167,965

See notes on next page.
(A)
Weighted average, including floating and fixed rate classes.
(B)
Including the effect of deferred financing cost.
(C)
The Traditional Golf term loan was collateralized by 22 Traditional Golf properties. The carrying amount of the Traditional Golf term loan was reported net of deferred financing costs of $2.1 million as of December 31, 2017. The loan was prepaid in December 2018. See below for additional information.
(D)
Interest rate based on 3-month LIBOR plus 2.25%.

Credit Facilities

In June 2016, the Company obtained third-party financing on 22 traditional golf properties for a total of $102.0 million at a floating rate of the greater of: (i) 30-day LIBOR + 4.70% or (ii) 6.50%. At the time of closing, the Company purchased a co-terminus LIBOR interest rate cap of 1.80%. The financing was for a term of three years with the option for two one-year extensions. In December 2018, the Company prepaid the financing subsequent to the sale of Traditional Golf properties as described in Note 5. The Company incurred prepayment penalties of $0.7 million and write-off of deferred financing costs of $0.8 million related to the loan prepayment. In December 2018, the Company also unwound the interest rate cap associated with the financing.

Traditional Golf is obligated under a $0.2 million loan with the City of Escondido, California (“Vineyard II”). The principal amount of the loan is payable in five equal installments upon reaching the "Achievement Date”, which is the date on which the previous 36-month period equals or exceeds 240,000 rounds of golf played on the property. As of December 31, 2018, 240,000 rounds of golf have not been achieved within an applicable 36-month period. The interest rate is adjusted annually and is equal to 1% plus a short-term investment return, as defined in the loan agreement. As of December 31, 2018, the interest rate is 2.36%.

Capital Leases - Equipment

The Company leases certain golf carts and other equipment under capital lease agreements. The agreements typically provide for minimum rentals plus executory costs. Lease terms range from 24-66 months. Certain leases include bargain purchase options at lease expiration.

The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of December 31, 2018 are as follows:
2019
$
6,401

2020
5,126

2021
3,581

2022
1,831

2023
701

Thereafter
6

Total minimum lease payments
17,646

Less: imputed interest
1,868

Present value of net minimum lease payments
$
15,778


Maturity Table
The Company’s debt obligations have contractual maturities as follows:
 
Nonrecourse
 
Recourse
 
Total
2019
$
5,505

 
$
—

 
$
5,505

2020
4,569

 
—

 
4,569

2021
3,294

 
—

 
3,294

2022
1,724

 
—

 
1,724

2023
681

 
—

 
681

Thereafter
205

 
51,004

 
51,209

Total
$
15,978

 
$
51,004

 
$
66,982