Notes Payable And Subordinated Debt (Trust Preferred Securities)

9 Months Ended

Sep. 30, 2011

Notes Payable And Subordinated Debt (Trust Preferred Securities) [Abstract]

Notes Payable And Subordinated Debt (Trust Preferred Securities)

Note 11 – Notes Payable and Subordinated Debt (Trust Preferred Securities)

Notes payable and subordinated debt (trust preferred securities) are summarized as follows (dollars in thousands):

Name of Note Payable or Security	September 30, 2011 Interest Rate	December 31, 2010 Interest Rate	Maturity Date	September 30, 2011 Balance	December 31, 2010 Balance
BOSI Australian Corporate Credit Facility	--	6.31%	June 30, 2011	$--	$101,726
NAB Australian Corporate Term Loan	7.83%	--	June 30, 2014	85,991	--
NAB Australian Corporate Revolver	7.83%	--	June 30, 2014	--	--
Australian Shopping Center Loans	--	--	2011-2014	487	633
New Zealand Corporate Credit Facility	4.35%	4.75%	March 31, 2012	21,490	20,370
Trust Preferred Securities	9.22%	9.22%	April 30, 2027	27,913	27,913
US Cinemas 1, 2, 3 Term Loan	6.73%	6.73%	July 1, 2012	15,000	15,000
US GE Capital Term Loan	5.50%	5.50%	December 1, 2015	32,188	37,500
US Liberty Theaters Term Loans	6.20%	6.20%	April 1, 2013	6,620	6,727
US Nationwide Loan 1	8.50%	8.50%	February 21, 2013	598	730
US Nationwide Loan 2	--	8.50%	February 21, 2011	--	1,839
US Sanborn Note	7.00%	--	January 31, 2012	250	--
US Sutton Hill Capital Note – Related Party	8.25%	8.25%	December 31, 2013	9,000	9,000
US Union Square Term Loan – Sun Life	5.92%	5.92%	May 1, 2015	7,227	7,383
Total				$206,764	$228,821

NAB Australian Corporate Term Loan

            On June 24, 2011, we replaced our Australian Corporate Credit Facility of $115.8 million (AUS$110.0 million) with BOS International ("BOSI") with a new credit facility from National Australia Bank ("NAB") of $110.5 million (AUS$105.0 million).  NAB provided us term debt of $94.7 million (AUS$90.0 million) and $9.5 million (AUS$9.0 million) in line of credit which we used combined with our cash of $1.6 million (AUS$1.5 million) to pay down our $105.8 million (AUS$100.5 million) of outstanding BOSI debt. 

The new three-tiered credit facility from NAB (the "NAB Credit Facility") has a term of three years, due and payable June 30, 2014, and comprises a $87.7 million (AUS$90.0 million) term loan; a $9.7 million (AUS$10.0 million) revolving facility for which we do not have a balance at September 30, 2011; and a $4.9 million (AUS$5.0 million) guarantee facility. This loan to Reading Entertainment Australia commenced on June 24, 2011 with an interest rate of between 2.90% and 2.15% above the BBSY bid rate. The collateral pledged as security under the NAB Credit Facility is equivalent to that pledged to secure the expired BOSI Facility. The NAB Credit Facility requires annual principal payments of between $6.8 million (AUS$7.0 million) and $8.8 million (AUS$9.0 million) which, it is anticipated, will be paid from Reading Entertainment Australia operating cash flows. The covenants of the NAB Credit Facility include a fixed charge coverage ratio, a debt service cover ratio, an operating leverage ratio, a loan to value ratio, and other financial covenants. Additionally, the NAB Credit Facility allows us to transfer only $3.9 million (AUS$4.0 million) per year outside of Australia. On August 2, 2011, we paid down our NAB revolver by $9.7 million (AUS$9.0 million) resulting in a zero balance on that date.

            In conjunction with this NAB Credit Facility, we entered into a five-year interest swap agreement which swaps 100% of our $86.0 million (AUS$88.3 million) variable rate term loan (decreasing in line with scheduled principal repayments) based on BBSY, for a 5.50% fixed rate.  For further information regarding our swap agreements, see Note 17 – Derivative Instruments.

US Nationwide Notes 1 & 2

            Pursuant to the terms of the notes, on February 21, 2011, we paid off our Nationwide Loan 2 of $1.5 million with its $359,000 of accrued interest and paid off the accrued interest of $134,000 included in the Nationwide Loan 1 balance.

US Sanborn Note

On August 25, 2011, we issued a $250,000 note in partial payment of the purchase price for the CalOaks Cinema in Murrieta, California. Under the applicable purchase and sale agreement and the terms of the note, our liability under this note is subject to reduction in the event that post-closing adjustments result in a reduction of the purchase price paid for that cinema. The note carries an interest rate of 7.00% and a maturity date of January 31, 2012 (see Note 6 – Acquisitions, Property Sold, Property Held for Sale, Property Held For and Under Development, and Property and Equipment).

Bank of America Line of Credit

            On July 21, 2011, we used $2.5 million of our $3.0 million line of credit with Bank of America for a letter of credit associated with the lease of our under construction new 8-screen Angelika Film Center cinema in the Mosaic District in the Greater Washington D.C. area.