Note 11 – Notes Payable

Notes payable are summarized as follows (dollars in thousands):


	June 30,
	2012		December
	Interest		31, 2011				June 30, 2012		December 31,
Name of Note Payable or Security	Rate		Interest Rate		Maturity Date		Balance		2011 Balance
NAB Australian Corporate Term Loan	6.28	%	7.20	%	June 30, 2014	$	84,959	$	88,671
NAB Australian Corporate Revolver	6.28	%	7.20	%	June 30, 2014		-		-
Australian Shopping Center Loans	-		-		2012-2014		256		384
New Zealand Corporate Credit Facility	4.70	%	4.15	%	March 31, 2015		22,476		21,854
Trust Preferred Securities	4.47	%	9.22	%	April 30, 2027		27,913		27,913
US Cinema 1, 2, 3 Term Loan	-		6.73	%	July 1, 2012		-		15,000
US Cinema 1, 2, 3 Term Loan	5.25	%	-		June 27, 2013		15,000		-
US GE Capital Term Loan	5.50	%	5.50	%	December 1, 2015		28,906		32,188
US Liberty Theaters Term Loans	6.20	%	6.20	%	April 1, 2013		6,507		6,583
US Nationwide Loan 1	8.50	%	8.50	%	February 21, 2013		595		597
Bank of America Letter of Credit	3.74	%	-		August 31, 2014		945		-
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 Theatre Term Loan	5.92	%	5.92	%	May 1, 2015		7,065		7,174
Total						$	203,622	$	209,614

Derivative Instruments

As indicated in Note 17 – Derivative Instruments, for our NAB Australian Corporate Credit Facility ("NAB Loan") and GE Capital Term Loan ("GE Loan"), we have entered into interest rate swap agreements for all or part of these facilities. These swap agreements result in us paying a total fixed interest rate of 8.15% (5.50% swap contract rate plus a 2.65% margin) for our NAB Loan and a total fixed interest rate of 5.84% (1.34% swap contract rate plus a 4.50% margin) for our GE Loan instead of the above indicated 6.28% and 5.50%, respectively, the obligatorily disclosed loan rates.

Trust Preferred Securities

Effective May 1, 2012, the interest rate on our Trust Preferred Securities changed from a fixed rate of 9.22%, which was in effect for the past five years, to a variable rate of 3 month LIBOR plus 4.00%, which will reset each quarter through the end of the loan.

Refinanced US Cinema 1, 2, 3 Loan

On June 28, 2012, Sutton Hill Properties LLC ("SHP"), one of our consolidated subsidiaries, paid off its Eurohypo AG, New York Branch loan with a new $15.0 million term loan (the "Sovereign Bank Loan") from Sovereign Bank, N.A. The Sovereign Bank Loan has a one-year term ending on June 27, 2013, with a one year extension option to June 26, 2014 subject to an extension fee equal to 1% of the ending principal balance and a compliance requirement with certain special covenants. As we currently intend to exercise this option, we have classified this loan as long-term. The terms of the Sovereign Bank Loan require interest only payments at LIBOR plus a 5.00% margin to be calculated and paid monthly. This loan is secured by SHP's interest in the Cinemas 1, 2, & 3 land and building. The Sovereign Bank Loan covenants include maintaining a loan to value ratio of at least 50% of fair market value and an 11% debt yield (with a numerator of the cash available for debt service and a denominator of the outstanding principal balance of the loan). SHP is owned 75% by Reading and 25% by Sutton Hill Capital, LLC, a joint venture indirectly wholly owned by Mr. James J. Cotter, our Chairman and Chief Executive Officer, and an unrelated third party. The Sovereign Bank Loan is further secured by a guaranty provided by Reading International, Inc.

Renewed New Zealand Credit Facility

On February 8, 2012, we received an approved amendment from Westpac renewing our existing $36.9 million (NZ$45.0 million) New Zealand credit facility with a 3-year credit facility. The renewed facility decreased the overall facility by $4.1 million (NZ$5.0 million) to $32.8 million (NZ$40.0 million) and increased the facility margin from 0.55% to 2.0%. No other significant changes to the facility were made.