Bank Loan Facilities

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Bank Loan Facilities

Note 10 — Bank Loan Facilities

At December 31, 2015, the Company had a $50.0 million revolving loan facility with a U.S. banking institution to provide for working capital needs and for other general corporate purposes. The revolving loan facility has historically been renewed annually. The maturity date of the facility is April 30, 2016. Interest on the borrowings is based on the higher of 3.25% or the U.S. Prime Rate (3.5% at December 31, 2015) and is payable monthly. The weighted average daily borrowings outstanding under the revolving loan facility were approximately $35.8 million and $33.9 million for the years ended December 31, 2015 and 2014, respectively. The weighted average interest rate was 3.3% for each of the years ended December 31, 2015, 2014, and 2013.

In connection with the acquisition of Cogent, the Company funded the cash component of the consideration paid at closing with two bank term loan facilities (the "Term Loan Facilities"), each in an original principal amount of $22.5 million, and together in the aggregate amount of $45.0 million. One Term Loan Facility is payable in full on April 30, 2016 (the "One Year Facility") and bears interest at the Prime Rate plus three-quarters of one percent (0.75%) per annum. The other Term Loan Facility matures on April 30, 2018 (the "Three Year Facility"), is payable in four equal semi-annual installments beginning October 31, 2016 and bears interest at the Prime Rate plus one and one-quarter percent (1.25%) per annum, which interest rate shall be reduced to the Prime Rate plus three-quarters of one percent (0.75%) per annum when the amount outstanding on the bank term loan facility is $7.5 million or less. There are no prepayment penalties for the early repayment of either Term Loan Facility. Principal amounts repaid on the Term Loan Facilities cannot be reborrowed. The interest rate applicable to the Term Loan Facilities shall never be less than four percent (4.00%) per annum. The weighted average interest rate related to the Term Loan Facilities was 4.3% for the year ended December 31, 2015. At December 31, 2015, the outstanding principal balances of the One Year Facility and the Three Year Facility were $11.3 million and $22.5 million, respectively. See "Note 3 — Acquisition".

The revolving and term loan facilities are provided by a U.S. banking institution and are secured by any cash distributed in respect of the Company’s investment in the U.S. based merchant banking funds, cash distributions from G&Co, and advisory fees receivable of G&Co. In addition, the bank loan facilities have a prohibition on the incurrence of additional indebtedness without the prior approval of the lenders and the Company is required to comply with certain financial and liquidity covenants. At December 31, 2015, the Company was compliant with all loan covenants.