Note 10 – Debt

The Company’s borrowings at September 30, 2017 and December 31, 2016, net of deferred financing costs and including the impact of interest rate derivatives on effective interest rates, are summarized below:


		As of September 30, 2017
(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	$	27,501	5.31%	5.20%
	Bank of America Credit Facility (USA)	November 28, 2019		55,000		40,500		40,481	3.74%	3.65%
	Bank of America Line of Credit (USA)	October 31, 2019		5,000		--		--	4.24%	4.24%
	Cinema 1, 2, 3 Term Loan (USA)(4)	September 1, 2019		19,601		19,601		19,168	3.25%	3.25%
	Minetta & Orpheum Theatres Loan (USA)(4)	June 1, 2018		7,500		7,500		7,452	4.00%	4.00%
	U.S. Corporate Office Term Loan (USA)(4)	January 1, 2027		9,774		9,774		9,651	4.64%	4.64%
	Union Square Construction Financing (USA)(4)	December 29, 2019		57,500		8,000		5,351	5.49%	5.49%
Denominated in foreign currency ("FC") (2)
	NAB Corporate Term Loan (AU)	June 28, 2019		52,136		38,024		37,920	3.55%	3.55%
	Westpac Corporate Credit Facility (NZ)	December 31, 2018		38,293		--		--	3.70%	3.70%
			$	272,717		151,312		147,524

(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, 2017.

(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, 2017.

(3) Net of deferred financing costs amounting to $3.8 million.

(4) The loan for our Minetta & Orpheum Theatres was obtained from Santander Bank. The term loan for our Cinema 1,2,3 Theatre was refinanced during the third quarter of 2016 with Valley National Bank. The term loan, which is collateralized by our new U.S Corporate Headquarters office building, was obtained with Citizens Asset Finance, Inc. In December 2016, we completed the negotiation of the construction financing for our Union Square redevelopment project, $8.0 million of which was advanced from the total construction loan limit of $57.5 million.


		As of December 31, 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	$	27,340	4.89%	5.20%
	Bank of America Credit Facility (USA)	November 28, 2019		55,000		39,950		39,759	3.27%	3.90%
	Bank of America Line of Credit (USA)	October 31, 2019		5,000		--		--	3.77%	3.77%
	Cinema 1, 2, 3 Term Loan (USA)(4)	September 1, 2019		19,901		19,901		19,356	3.25%	3.25%
	Minetta & Orpheum Theatres Loan (USA)(4)	June 1, 2018		7,500		7,500		7,398	3.38%	3.38%
	U.S. Corporate Office Term Loan (USA)(4)	January 1, 2027		8,363		8,363		8,239	4.64%	4.64%
	Union Square Construction Financing (USA)(4)	December 29, 2019		57,500		8,000		4,751	4.52%	4.52%
Denominated in FC (2)
	NAB Corporate Term Loan (AU)	June 30, 2019		48,080		28,558		28,421	2.64%	2.64%
	Westpac Corporate Credit Facility (NZ)	March 31, 2018		36,877		8,350		8,350	3.80%	3.80%
			$	266,134	$	148,535	$	143,614

(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 December 31, 2016.

(3) Net of deferred financing costs amounting to $4.9 million.

(4) The loan for our Minetta & Orpheum Theatres was obtained from Santander Bank. The term loan for our Cinema 1,2,3 Theatre was refinanced during the third quarter of 2016 with Valley National Bank. The term loan, which is collateralized by our new U.S Corporate Headquarters office building, was obtained with Citizens Asset Finance, Inc.. In December 2016, we completed the negotiation of the construction financing for our Union Square redevelopment project, $8.0 million of which was advanced from the total construction loan limit of $57.5 million.

The Minetta & Orpheum Theatres Loan will become due within one year. Currently, we are negotiating with our lender to renew this borrowing.

Our loan arrangements are presented, net of the deferred financing costs, on the face of our consolidated balance sheet as follows:


	Dollars in thousands
Balance Sheet Caption	September 30, 2017		December 31, 2016
Debt - current portion	$	8,084	$	567
Debt - long-term portion		111,939		115,707
Subordinated debt		27,501		27,340
Total borrowings	$	147,524	$	143,614

Union Square Construction Financing

On December 29, 2016, we closed our new construction finance facilities totaling $57.5 million to fund the non-equity portion of the anticipated construction costs of the redevelopment of our property at 44 Union Square in New York City. The combined facilities consist of $50 million in aggregate loans (comprised of three loan tranches) from Bank of the Ozarks and a $7.5 million mezzanine loan from Tammany Mezz Investor, LLC, an affiliate of Fisher Brothers. As of December 31, 2016, Bank of the Ozarks advanced $8.0 million to repay the then existing $8.0 million loan with East West Bank.

Presented in the table below is the breakdown of the Union Square construction financing as of September 30, 2017:


(Dollars in thousands)		Facility Limits and Advances
Financing Component	Lender	Facility Limit		Advanced-to- Date		Remaining Facility		Interest Rate(1)	Maturity Date(2)
Mezzanine loan	Tammany Mezz Investor LLC	$	7,500	$	--	$	7,500	Greater of (i) 10.50% and (ii) Adjusted LIBOR + 10%	December 29, 2019
Senior loan, including building and project loan	Bank of the Ozarks		50,000		8,000		42,000	Greater of (i) 4.75% and (ii) Adjusted LIBOR + 4.25%	December 29, 2019
Total Union Square Financing		$	57,500	$	8,000	$	49,500

(1) Not to exceed the New York State maximum lawful borrowing rate, which typically is 16%.

(2) Allowable for up to two (2) extension request options, one (1) year for each extension request.

Cinema 1,2,3 Term Loan

On August 31, 2016, Sutton Hill Properties LLC (“SHP”), a 75% subsidiary of RDI, refinanced its $15.0 million Santander Bank term loan with a different lender, Valley National Bank. This new $20.0 million loan is collateralized by our Cinema 1,2,3 property and bears an interest rate of 3.25% per annum, with principal instalments and accruing interest paid monthly. The new loan matures on September 1, 2019, with a one-time option to extend the maturity date for another year.

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 provides that the consolidated leverage ratio be reduced by 0.25% from the established levels in the credit facility during the period of such borrowing, with a repayment term based 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 U.S. GAAP.

Bank of America Line of Credit

In October 2016, the term of this line of credit was extended to October 31, 2019. Such modification was not considered to be substantial under US GAAP.

Westpac Bank Corporate Credit Facility

On April 26, 2017, we extended the maturity of the 1st tranche (general/non-construction credit line) of our Westpac Corporate Credit Facility, $24.5 million (NZ$35.0 million) to December 31, 2018, from March 31, 2018. We are currently working on a longer-term renewal of our Westpac Corporate Credit Facility which will replace the existing facility.

U.S. Corporate Office Term Loan

On December 13, 2016, we obtained a ten-year $8.4 million mortgage loan on our new Los Angeles Corporate Headquarters at a fixed annual interest rate of 4.64%. This loan provided for a second loan upon completion of certain improvements. On June 26, 2017, we obtained a further $1.5 million under this provision at a fixed annual interest rate of 4.44%.