Note 10 – Debt

The Company’s borrowings at September 30, 2016 and December 31, 2015, net of deferred financing costs and including the impact of interest rate swaps on effective interest rates, are summarized below:


		As of September 30, 2016
(Dollars in thousands)		Maturity Date	Contractual Facility		Balance, Gross		Balance, Net (3)		Stated Interest Rate	Effective Interest Rate (1)
Denominated in USD
	Trust Preferred Securities (USA)	April 30, 2027	$	27,913	$	27,913	$	27,286	4.76%	5.20%
	Bank of America Credit Facility (USA)	November 28, 2019		55,000		38,950		38,699	3.27%	3.90%
	Bank of America Line of Credit (USA)	October 31, 2017		5,000		1,000		1,000	3.45%	3.45%
	Cinema 1, 2, 3 Term Loan (USA)(4)	September 1, 2019		20,000		20,000		19,401	3.25%	3.25%
	Minetta & Orpheum Theatres Loan (USA)(4)	June 1, 2018		7,500		7,500		7,380	3.31%	3.31%
	Union Square Line of Credit (USA)(4)	June 2, 2017		8,000		8,000		7,937	3.51%	3.51%
Denominated in foreign currency ("FC") (2)
	National Australia Bank ("NAB") Corporate Term Loan (AU)	June 28, 2019		50,986		30,285		30,126	2.62%	2.62%
	Westpac Bank Corporate Credit Facility (NZ)	March 31, 2018		36,450		10,571		10,571	3.95%	3.95%
			$	210,849	$	144,219	$	142,400

(1) Effective interest rate includes the impact of interest rate derivatives hedging the interest rate risk associated with Trust Preferred Securities and Bank of America Credit Facility that were outstanding as of September 30, 2016.

(2) The contractual facilities and outstanding balances of the FC-denominated borrowings were translated into U.S. dollars based on the applicable exchange rates as of September 30, 2016.

(3) Net of deferred financing costs amounting to $1.8 million.

(4) The loan for our Minetta & Orpheum Theatres was obtained from Santander Bank. The Union Square line of credit was obtained through East West Bank. We are currently in the process of negotiating a construction loan for our Union Square property that will pay-off this loan with East West Bank. The term loan for our Cinema 1,2,3 Theatre, which was previously provided by Santander Bank, was refinanced during the third quarter of 2016 with Valley National Bank. Refer below for further discussion.


		As of December 31, 2015
(Dollars in thousands)		Maturity Date	Contractual Facility		Balance, Gross		Balance, Net (3)		Stated Interest Rate	Effective Interest Rate (1)
Denominated in USD
	Trust Preferred Securities (USA)	April 30, 2027	$	27,913	$	27,913		27,125	4.32%	5.20%
	Bank of America Credit Facility (USA)	November 28, 2019		55,000		29,750		29,321	2.92%	3.65%
	Bank of America Line of Credit (USA)	October 31, 2017		5,000		2,500		2,500	3.42%	3.42%
	Cinema 1, 2, 3 Term Loan (USA)(4)	July 1, 2016		15,000		15,000		14,887	3.75%	3.75%
	Cinema 1, 2, 3 Line of Credit (USA)(4)	July 1, 2016		6,000		--		--	3.75%	3.75%
	Minetta & Orpheum Theatres Loan (USA)(4)	June 1, 2018		7,500		7,500		7,326	3.00%	3.00%
	Union Square Line of Credit (USA)(4)	June 2, 2017		8,000		8,000		7,858	3.65%	3.65%
Denominated in FC (2)
	NAB Corporate Term Loan (AU)	June 30, 2019		48,452		26,594		26,412	3.06%	3.06%
	Westpac Bank Corporate Credit Facility (NZ)	March 31, 2018		34,210		13,684		13,684	4.45%	4.45%
			$	207,075	$	130,941	$	129,113

(2) The contractual facilities and outstanding balances of the FC-denominated borrowings were translated into U.S. dollar based on the applicable exchange rates as of December 31, 2015.

(3) The balance as of December 31, 2015 included the reclassification adjustment relating to netting of deferred financing costs amounting to $1.8 million, as discussed in Note 1 – Recently Adopted and Issued Accounting Pronouncements.

(4) The loans for our Cinema 1,2,3 and Minetta & Orpheum Theatres were obtained from Bank of Santander. The Union Square line of credit was obtained through East West Bank.

Cinema 1,2,3 Term Loan

On August 31, 2016, Sutton Hill Properties LLC (“SHP”), a 75% subsidiary of Reading International Inc., refinanced its $15 million Santander Bank term loan with a different lender, Valley National Bank. This new $20 million loan is collateralized by our Cinema 1,2,3 property and bears an interest rate of 3.25% per annum, with principal installments and accruing interest paid monthly. The new loan matures on September 1, 2019, with a one-time option to extend maturity date for another year.

Prior to the above refinancing, on June 27, 2016, SHP obtained approval from Santander Bank to extend the maturity of our $15 million mortgage term loan from July 1, 2016 to October 1, 2016. This term extension was not considered substantial in accordance with US GAAP. This term loan was subsequently paid prior to its extended maturity date on August 31, 2016 as a result of the refinancing discussed in the previous paragraph. In conjunction with the extension, our line of credit with Santander Bank amounting to $6.0 million was deactivated effective July 1, 2016. The Company did not make any drawdown against this line of credit.

Bank of America Credit Facility

On March 3, 2016, we amended our $55.0 million credit facility with Bank of America to permit real property acquisition loans. This amendment was subject to the provision that the consolidated leverage ratio would be reduced by 0.25% from the established levels in the credit facility during the period of such borrowing subject further to a repayment of such borrowings on the earlier of the eighteen months from the date of such borrowing or the maturity date of the credit agreement. Such modification was not considered substantial in accordance with US GAAP.