|3 Months Ended|
Mar. 31, 2017
|Debt Disclosure [Abstract]|
Notes payable consisted of the following:
The Company estimates that the fair value of notes payable was $22,751 at March 31, 2017 and $24,494 at December 31, 2016 based on then current interest rates at which similar amounts of debt could then be borrowed (Level 2 inputs). As of March 31, 2017, the Company was in compliance with all covenants in its debt agreements.
At March 31, 2017, the Company had $40,000 available under its $40,000 revolving credit agreement with an affiliate of its principal shareholder. On March 9, 2016, the Company entered into an amendment to the revolving credit agreement to extend the maturity date thereunder for a period of five years to August 25, 2021.
On April 21, 2017, Securities America entered into an amended and restated loan agreement with a financial institution. The loan agreement modified the interest rate for Securities America's revolving credit facility to prime plus 2.25% and decreased the revolving credit availability to $1,468. This loan agreement also provides for an additional term loan in the aggregate principal amount of $8,000, subject to certain conditions. This second term loan bears interest at 5.75%, with a maturity date of May 1, 2020. The loans are collateralized by Securities America's assets.
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://www.xbrl.org/2003/role/presentationRef