Note 10 - Other Debt - CBC

3 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Other Debt Disclosure [Text Block]

Note

10—Other

Debt—CBC

 The Company assumed

$25.9

million of debt related to the CBC acquisition (see Note

5)

on

December

 

31,

2013,

including a

$12.5

million line of credit with an interest rate floor of

5.5%.

Between

March

 

27,

2014

and

September

 

29,

2014,

CBC entered into

three

amendments (Sixth Amendment through Eighth Amendment), resulting in the line of credit increasing to

$22.0

million and the interest rate floor reduced to

4.75%.

On

March

 

11,

2015,

CBC entered into the Ninth Amendment. This amendment, effective

March

 

1,

2015,

extended the maturity date on its credit line from

February

 

28,

2015

to

March

 

1,

2017

.

Additionally, the credit line was increased from

$22.0

million to

$25.0

 million and the interest rate floor was decreased from

4.75%

to

4.1%.

Other terms and conditions were materially unchanged. On

November

 

26,

2014,

CBC completed its

fourth

private placement, backed by structured settlement and fixed annuity payments. CBC issued, through its subsidiary, BBR IV, LLC, approximately

$21.8

million of fixed rate asset-backed notes with a yield of

5.4%.

On

September

 

25,

2015,

CBC completed its

fifth

private placement, backed by structured settlement and fixed annuity payments. CBC issued, through its subsidiary, BBR V, LLC, approximately

$16.6

million of fixed rate asset-backed notes with a yield of

5.1%.

On

July

8,

2016,

CBC issued, through its subsidiary, BBR VI, approximately

$14.8

million of fixed rate asset-backed notes with a yield of

4.85%.

   As of

December

31,

2016,

the remaining debt amounted to

$71.6

million, which consisted of

$15.3

million drawdown from a line of credit from an institutional source and

$56.3

million notes issued by entities

100%

-owned and consolidated by CBC. These entities are bankruptcy-remote entities created to issue notes secured by structured settlements. The following table details the other debt at

December

31,

2016

and

September

 

30,

2016:

	Interest Rate			December 30 , 2016		September 30, 201 6
Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025		8.75	%	$	1,817,000	$	1,862,000
Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026		7.25	%		4,138,000		4,242,000
Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032		7.125	%		3,948,000		3,987,000
Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2037		5.39	%		18,601,000		18,978,000
Notes payable secured by settlement receivables with principal and interest outstanding payable until March 2034		5.07	%		14,193,000		14,507,000
Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2043		4.85	%		13,605,000		13,705,000
Subtotal notes payable					56,302,000		57,281,000
$25,000,000 revolving line of credit expiring on March 1, 2017		4.1	%		15,264,000		10,154,000
Total debt – CBC				$	71,566,000	$	67,435,000