Quarterly report pursuant to Section 13 or 15(d)

Notes Payable

v3.7.0.1
Notes Payable
 6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
Notes Payable
Notes Payable

Notes payable consisted of the following:
 
June 30,
2017
 
December 31,
2016
Notes payable to clearing firm under forgivable loans
$
4,285

 
$
4,285

Note payable under subsidiary's term loan with bank
7,815

 
153

Note payable under subsidiary's revolver with bank
392

 
620

Notes payable by subsidiary to certain former shareholders of Highland
6,738

 
6,738

Notes payable to KMS' former shareholders, net of $159 and $221 of unamortized discount in 2017 and 2016, respectively
2,910

 
3,852

Notes payable to SSN's former shareholders, net of $488 and $651 of unamortized discount in 2017 and 2016, respectively
8,433

 
10,769

Total
$
30,573

 
$
26,417



The Company estimates that the fair value of notes payable was $28,755 at June 30, 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 June 30, 2017, the Company was in compliance with all covenants in its debt agreements.

At June 30, 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 Financial Corporation ("SAFC") entered into an amended and restated loan agreement with a financial institution. The loan agreement modified the interest rate for new loans under SAFC's revolving credit facility to prime plus 2.25%. As of June 30, 2017, SAFC had $1,000 of availability under the revolving credit facility. 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 the assets of SAFC and Securities America Advisors, Inc.