Bank Loan Facilities

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Bank Loan Facilities

Note 10 — Bank Loan Facilities

At December 31, 2016, the Company had a $70.0 million revolving bank loan facility ($50.0 million at December 31, 2015) 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, 2017. Interest on the borrowings is based on the higher of 3.5% or the U.S. Prime Rate (3.75% at December 31, 2016) and is payable monthly. The weighted average daily borrowings outstanding under the revolving loan facility were approximately $54.1 million and $35.8 million for the years ended December 31, 2016 and 2015, respectively. The weighted average interest rate was 3.5% for the year ended December 31, 2016, and 3.3% for the years ended December 31, 2015 and 2014, respectively.

In connection with the acquisition of Cogent in April 2015, the Company borrowed $45.0 million, which was comprised of two bank term loan facilities (the "Term Loan Facilities"), each in an original principal amount of $22.5 million. One Term Loan Facility was payable in full on April 30, 2016 (the "One Year Facility") and bore interest at the Prime Rate plus three-quarters of one percent (0.75%) per annum. The One Year Facility was repaid in two equal installments, one in June 2015 and the other in April 2016. The other Term Loan Facility matures on April 30, 2018 (the "Three Year Facility"), is payable in four equal semi-annual installments beginning on 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 Three Year Facility is $7.5 million or less. The first installment of $5.6 million was repaid in 2016 and at December 31, 2016, the outstanding principal balance of the Three Year Facility was $16.9 million. Future installments in equal principal amounts on the Three Year Facility are due on April 30, 2017, October 31, 2017 and the final installment is due on April 30, 2018. 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 4.7% and 4.3% for the year ended December 31, 2016 and 2015, respectively.

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 GCI, and advisory fees receivable from 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, 2016, the Company was compliant with all loan covenants.