Quarterly report pursuant to sections 13 or 15(d)

Long-Term Debt

Long-Term Debt
9 Months Ended
Jun. 30, 2013
Long-Term Debt [Abstract]  
Long-Term Debt

Note 5. Long-Term Debt


Outstanding debt under the Company's various loan agreements is presented in the table below:


(in thousands)     Revolving Line of Credit       Term Loan       Mortgage Note       Total Credit Facility  
June 30, 2013                                
Principal balance outstanding   $ -     $ 36,500     $ -     $ 36,500  
Remaining available credit   $ 60,000     $ -     $ -     $ 60,000  
Effective interest rate     2.44%       2.69%                  
Scheduled maturity date      October 2020         October 2020                   
Collateral      Real Estate         Real Estate                   
September 30, 2012                                
Principal balance outstanding   $ -     $ 38,000     $ 1,900     $ 39,900  
Remaining available credit   $ 60,000     $ -     $ -     $ 60,000  
Effective interest rate     2.48%       2.73%       6.68%          
Scheduled maturity date      October 2020         October 2020         March 2014           
Collateral      Real Estate         Real Estate         Real Estate           


The Company has a credit facility including a revolving line of credit ("RLOC") and term loan with Rabo AgriFinance, Inc. ("Rabo") totaling $96,500,000. The revolving line of credit and term loan are collateralized by 43,991 acres of farmland and 12,280 acres of additional real property containing approximately 8,600 acres of producing citrus groves.


The $60,000,000 RLOC bears interest at a floating rate payable on the first day of each calendar quarter. The RLOC matures on October 1, 2020. At June 30, 2013, there was no outstanding balance on the RLOC. The Company pays an annual commitment fee on the RLOC equal to 0.15% of the difference between the annual average unpaid balance and the $60,000,000 loan commitment. The commitment fee is payable on February 1 of each year. Commitment fees of approximately $87,000 were paid during February 2013 and $38,000 was accrued at June 30, 2013.


The interest rate on the RLOC is based on the one month LIBOR plus a spread. The spread is determined based upon our debt service coverage ratios for the preceding fiscal year and can vary from 225 to 250 basis points. The rate is currently at LIBOR plus 225 basis points. On October 1, 2015, Rabo may adjust the interest rate spread to any percentage above one month LIBOR. Rabo must provide a 30 day notice of the new spreads; at that time, the Company has the right to prepay the outstanding balance.


The term loan requires quarterly payments of interest at a floating rate of one month LIBOR plus 250 basis points. It also requires quarterly principal payments of $500,000 through October 1, 2020 when the remaining principal balance and accrued interest will be due and payable.


At June 30, 2013 and September 30, 2012, Alico was in compliance with all of its covenants under the Rabo loan agreement.


On October 10, 2012, the outstanding mortgage note held by Farm Credit of Florida was paid in full. The payment included $1,794,000 for the principal balance and $66,000 for a prepayment penalty which was included in interest expense on our consolidated statement of operations. The mortgage was collateralized by 7,680 acres of real estate used for farm leases, sugarcane and citrus production. The collateral was released upon satisfaction of the mortgage.


Maturities of the Company's debt were as follows at June 30, 2013:


(in thousands)        
Due within one year   $ 2,000  
Due between one and two years     2,000  
Due between two and three years     2,000  
Due between three and four years     2,000  
Due between four and five years     2,000  
Due beyond five years     26,500  
Total   $ 36,500  


Interest costs expensed and capitalized to property, buildings and equipment were as follows:


(in thousands)   Three Months Ended June 30,   Nine Months Ended June 30,
    2013   2012   2013   2012
Interest expense   $ 290     $ 354     $ 968     $ 1,290  
Interest capitalized     31       24       60       62  
Total   $ 321     $ 378     $ 1,028     $ 1,352