Debt and Finance Lease Obligations

3 Months Ended

Jun. 27, 2020

Debt and finance lease obligations primarily consisted of secured credit facilities at the Company's finance subsidiary and lease obligations in which it is expected that the Company will obtain ownership of a leased asset at the end of the lease term. The following table summarizes debt and finance lease obligations (in thousands):


	June 27, 2020		March 28, 2020
Secured credit facilities	$	10,178	$	10,474
Other secured financings	3,985		4,113
Finance lease liabilities	349		366
	$	14,512	$	14,953

The Company's finance subsidiary entered into secured credit facilities with independent third-party banks with draw periods from one to fifteen months and maturity dates of ten years after the expiration of the draw periods, which have now expired. The proceeds were used by the Company to originate and hold consumer home-only loans secured by manufactured homes, which are pledged as collateral to the facilities. Upon completion of the draw down periods, the facilities were converted into an amortizing loan based on a 20-year amortization period with a balloon payment due upon maturity. The maximum advance for loans under this program was 80% of the outstanding collateral principal balance, with the Company providing the remaining funds. As of June 27, 2020, the outstanding balance of the converted loans was $10.2 million at a weighted average interest rate of 4.91%.

See Note 9 for further discussion of the finance lease obligations.