CREDIT FACILITY

As of June 30, 2020, the Company had $24.2 million of debt outstanding, with a weighted average interest rate of 2.4% and a weighted average term to maturity of three months.

The following table summarizes the debt balances as of June 30, 2020 and December 31, 2019 and the debt activity for the six months ended June 30, 2020:



			During the Six Months Ended June 30, 2020
	Balance as of December 31, 2019		Debt Issuance		Repayments		Balance as of June 30, 2020
Credit facility	$	24,175,000	$	—	$	—	$	24,175,000
Total debt	$	24,175,000	$	—	$	—	$	24,175,000

Credit Facility

As of June 30, 2020, the Company had $24.2 million of debt outstanding under its Credit Facility with JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), as administrative agent, and the lenders under the credit agreement (as amended, the “Credit Agreement”), that previously provided for borrowings of up to $100.0 million in revolving loans (the “Revolving Loans”). On September 20, 2019, the Credit Agreement was modified to extend the maturity date of such loans to September 23, 2020 and reduced the borrowing commitment to $29.3 million (the “First Modification”). The First Modification also amended the definition of asset value, in part, by removing certain tenant concentration limits, and removed the option to further extend the maturity date.

Depending upon the type of loan specified and overall leverage ratio, the Credit Facility bears interest at (i) the one-month, two-month, three-month or six-month London Interbank Offered Rate (“LIBOR”) multiplied by the statutory reserve rate (the “Eurodollar Rate”) plus an interest rate spread of 2.20%; or (ii) a base rate of 1.20%, plus the greater of: (a) JPMorgan Chase’s Prime Rate (as defined in the Credit Agreement); (b) the Federal Funds Effective Rate (as defined in the Credit Agreement) plus 0.50%; or (c) the one-month LIBOR multiplied by the statutory reserve rate plus 1.0%. As of June 30, 2020, the Revolving Loans outstanding totaled $24.2 million at a weighted average interest rate of 2.4%. The Company had available borrowings of $5.1 million as of June 30, 2020.

The Credit Agreement contains provisions with respect to covenants, events of default and remedies customary for facilities of this nature. In particular, the Credit Agreement requires the Company to maintain a minimum consolidated net worth greater than or equal to 75% of the equity issued from the date of the Credit Agreement, a leverage ratio no greater than 60%, and a fixed charge coverage ratio equal to or greater than 1.50. The Company believes it was in compliance with the financial covenants of the Credit Agreement as of June 30, 2020.

Maturities

Liquidity and Financial Condition — As of June 30, 2020, the Company had $24.2 million of debt outstanding under the Credit Facility maturing on September 23, 2020. The Company expects to either extend the maturity date of the Credit Facility for one year to September 23, 2021, or enter into new financing arrangements to meet its obligations as they become due, and is in discussions with the administrative agent of the Credit Facility regarding an extension of the maturity date. The Company believes cash on hand, net cash provided by operations, and the entry into new financing arrangements, including a modification to extend the Credit Facility, will be sufficient to meet its obligations as they become due in the ordinary course of business for at least 12 months following the date these financial statements are issued. The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt subsequent to June 30, 2020:



	Principal Repayments
Remainder of 2020	$	24,175,000
2021	—
2022	—
2023	—
2024	—
Thereafter	—
Total	$	24,175,000