XML 21 R25.htm IDEA: XBRL DOCUMENT v2.4.0.8
Subsequent Events
9 Months Ended
Sep. 30, 2014
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events
On October 16, 2014 (the Closing Date), the Company, through its wholly-owned subsidiary, Longtrain Leasing II, entered into a lease fleet financing facility for $100.0 million under a term loan agreement (Term Loan Facility), to support the growth of its leasing business. The Term Loan Facility matures in April 2015. The Term Loan Facility is the obligation of Longtrain Leasing II, is generally non-recourse to ARI, and is secured by a first lien on substantially all assets of Longtrain Leasing II, consisting of railcars, railcar leases, receivables and related assets, subject to limited exceptions.
Subject to the provisions of the Term Loan Facility, the principal borrowed thereunder (the Loan) accrues interest at a rate determined by reference to an index or, subject to certain circumstances, at a base rate. For the portion of the Loan accruing interest at a rate determined by reference to an index, (i) except during a period when the lender for such portion of the Loan is funding and maintaining such portion of the Loan through the issuance of or other financing arrangement in respect of commercial paper, the sum of LIBOR (as determined under the Term Loan Facility) for such period plus the Applicable Margin (described below), and (ii) during a period when the lender for such portion of the Loan is funding and maintaining such portion of the Loan through the issuance of or other financing arrangement in respect of commercial paper, the sum of the applicable commercial paper rate (the CP Rate as determined under the Term Loan Facility) plus the Applicable Margin (described below). From and including the Closing Date and through and including the date that is six months from the Closing Date, the Applicable Margin is equal to a rate per annum of 1.45%. Thereafter, the Applicable Margin increases to a rate per annum equal to 2.95%. The interest rate increases by 2.0% following certain defaults. For the portion of the Loan accruing interest at the base rate, the interest rate is the higher of the federal funds rate designated by the Term Loan Facility, plus 0.5%, or the prime rate designated by the Term Loan Facility. Principal and interest payments are due monthly, with any remaining balance payable on the scheduled maturity date.
On October 28, 2014, the board of directors of the Company declared a cash dividend of $0.40 per share of common stock of the Company to shareholders of record as of December 12, 2014 that will be paid on December 19, 2014.