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Notes Payable
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes Payable |
Notes Payable
Bank loan
The Company's controlled subsidiary AIA has an unsecured four-year loan of $15.9 million from UniCredit Bank AG, Munich, Germany. The loan is subject to initial repayment of $0.7 million and thereafter regular half-yearly repayments of $2.2 million, no prepayment penalties and variable interest based on the six-month Euribor plus 2.35%. In order to avoid any exposure to the risk from rising interest rates associated with variable interest obligations, a portion of the variable interest payments was converted into fixed interest obligations by means of interest rate swaps over the term of the loan.
Under the terms of the loan agreement, mandatory special loan payments are agreed under certain conditions. The provision regarding mandatory special loan payments will probably result in a mandatory special loan payment of $1.4 million, payable as of June 30, 2013. As a result, the repayment period and thus the loan will now end six months earlier than originally envisioned. These special loan payments result in a reclassification of the amount of the special loan payments to the current portion of the loan.
As of March 31, 2013, the non-current portion of the loan amounts to $3.3 million (inclusive of the special loan payment of $1.4 million noted above) and the current portion amounts to $7.8 million.
Subordinated bank loan
The Company's controlled subsidiary, AIA holds a note payable of $2.6 million from taking up mezzanine capital through a financing program of Capital Efficiency Group AG, Zug, Switzerland. This financing program matures in March 2014. The interest rate is 8.8% per year. A payment of 1% must be made each year and interest of 7.8% on the principal must be paid every quarter. The liability's carrying amount as of March 31, 2013 was $2.6 million.
Annuity loan
The Company's controlled subsidiary, AIA is a party to a loan agreement for $1.1 million with HVB Investitionsbank GmbH, Munich, to finance investments in hardware for the technical services of The Lab.Aero, a subsidiary of Inflight Productions Inc. Of the total remaining balance, $0.2 million is current as of March 31, 2013, and $0 million is non-current.
Long-term debt consists of the following at March 31, 2013 and December 31, 2012:
The following is a schedule, by year, of future minimum principal payments required under notes payable as of March 31, 2013:
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