NOTE 8. LONG-TERM DEBT

As of March 31, 2020, the Company’s outstanding indebtedness, at face value, was as follows:


	Face Value Debt		Stated Interest Rate	Maturity Date
Credit Facility	$	57,000,000	30-Day LIBOR + 1.35% - 1.95% (1)	November 2023
Total Debt/Weighted-Average Rate	$	57,000,000	2.27%

⁽¹⁾

See Note 15, “Subsequent Events” for a description of the interest rate swap, effective as of April 30, 2020, whereby LIBOR was fixed at 0.48% for approximately $50 million of the outstanding balance on the Company’s revolving credit facility.

Credit Facility. On November 26, 2019, the Company and the Operating Partnership entered into a credit agreement (the “Credit Agreement”) with a group of lenders for a senior unsecured revolving credit facility (the “Credit Facility”) in the maximum aggregate initial original principal amount of up to $100 million. BMO Capital Markets Corp. and Raymond James Bank, N.A. are joint lead arrangers and joint bookrunners, with Bank of Montreal (“BMO”) as administrative agent.

The Credit Facility has a term of four years, with the ability to extend the term for one year. The Credit Facility has an accordion feature that may allow the Operating Partnership to increase the availability under the Credit Facility by an additional $50 million, subject to meeting specified requirements and obtaining additional commitments from lenders.

Pursuant to the Credit Agreement, the indebtedness outstanding under the Credit Facility accrues at a rate ranging from the 30-day LIBOR plus 135 basis points to the 30-day LIBOR plus 195 basis points based on the total balance outstanding under the Credit Facility as a percentage of the total asset value of the Operating Partnership, as defined in the Credit Agreement.

The Operating Partnership is subject to customary restrictive covenants under the Credit Facility, including, but not limited to, limitations on the Operating Partnership’s ability to: (a) incur indebtedness; (b) make certain investments; (c) incur certain liens; (d) engage in certain affiliate transactions; and (e) engage in certain major transactions such as mergers. The Credit Facility also contains financial covenants covering the Operating Partnership, including but not limited to, tangible net worth and fixed charge coverage ratio. In addition, the Operating Partnership is subject to additional financial maintenance covenants as described in the Credit Agreement.

At March 31, 2020, the current commitment level under the Credit Facility was $100.0 million. The available borrowing capacity under the Credit Facility was $30.1 million, based on the level of borrowing base assets. As of March 31, 2020, the Credit Facility had an outstanding balance of $57.0 million. See Note 15, “Subsequent Events” for a discussion of the potential impact on borrowing base assets due to the COVID-19 Pandemic and the interest rate swap entered into by the Company that fixes the rate on $50 million of the outstanding balance on the Credit Facility to a range of 1.83% to 2.43%.

Long-term debt as of March 31, 2020 and December 31, 2019 consisted of the following:


	March 31, 2020				December 31, 2019
	Total		Due Within One Year		Total		Due Within One Year
Credit Facility	$	57,000,000	$	—	$	—	$	—
Loan Costs, net of accumulated amortization		(532,868)		—		—		—
Total Long-Term Debt	$	56,467,132	$	—	$	—	$	—

Payments applicable to reduction of principal amounts as of March 31, 2020 will be required as follows:


Year Ending December 31,	Amount
Remainder of 2020	$	—
2021		—
2022		—
2023		57,000,000
2024		—
2025 and thereafter		—
Total Long-Term Debt - Face Value	$	57,000,000

As of March 31, 2020, the Company’s long-term debt includes initial deferred financing costs of approximately $594,000, net of accumulated amortization, of approximately $61,000. These costs are amortized on a straight-line basis over the term of the Credit Facility and are included in interest expense in the Company’s accompanying consolidated statements of operations. As of December 31, 2019, these costs were reflected as deferred expenses on the accompanying consolidated balance sheets as there was no outstanding debt as of December 31, 2019.

The following table reflects a summary of interest expense incurred and paid during the three months ended March 31, 2020 and 2019:


	Three Months Ended
	March 31, 2020		March 31, 2019
	The Company ($000's)		Predecessor ($000's)
Interest Expense	$	205	$	—
Amortization of Loan Costs		44		—
Total Interest Expense	$	249	$	—

Total Interest Paid	$	164	$	—

The Company was in compliance with all of its debt covenants as of March 31, 2020.