Long-Term Debt

Long-Term Debt

The long-term debt of our company presents a total liability of $145 million. The liabilities are from various sources with differentiating interest rates.  Primarily, the debt consists of a note payable with face value of $15 million and a 4% interest rate. The note is due to mature over the next ten years with 10% of the principal due this year. Accordingly, $1.5 million of the principal will be paid and deducted from the balance. The financials also present $20 million of 7% secured bonds which is due in ten years. These bonds are collateralized on buildings.  Additionally, $5 million in 9% debenture bonds, due in two years, and $100 million in outstanding 8% term bonds, maturing in seven years, are presented on the statements. Lastly, a $5 Million debt borrowed last year at 4% from a related party is included in the financials. The debt is payable in three years. All interest incurred on the long-term liabilities is classified as current liability and is paid annually.

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