Quarterly report pursuant to Section 13 or 15(d)

Debt and Interest

v3.20.1
Debt and Interest
 3 Months Ended
Mar. 31, 2020
Debt and Interest  
Debt and Interest

10. Debt and Interest

Debt

Total debt consists of the following as of March 31, 2020 and December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

    

March 31, 

    

December

    

 

    

 

($ in thousands)

 

2020

 

31, 2019

 

Interest rate

 

Maturity

IDB Note

 

$

14,929

 

$

14,929

 

2.25

%  

Aug - 2021

2017 Subordinated Note Financing

 

 

3,254

 

 

3,254

 

8.00

%  3

March - 2022

2017 Subordinated Note Financing

 

 

13,893

 

 

13,893

 

8.00

%  3

May - 2022

2017 Subordinated Note Financing

 

 

1,820

 

 

1,820

 

8.00

%  3

June - 2022

2017 Subordinated Note Financing

 

 

3,018

 

 

3,018

 

8.00

%  3

August - 2022

2017 Subordinated Note Financing

 

 

6,371

 

 

6,371

 

8.00

%  3 

September - 2022

2018 Venture Notes

 

 

6,517

 

 

6,517

 

8.00

%  

August - 2021

2018 Venture Notes

 

 

15,190

 

 

15,190

 

8.00

%  

September - 2021

2019 Notes1

 

 

9,000

 

 

9,000

 

12.00

%  

September - 2021

Mustang Horizon Notes2

 

 

15,750

 

 

15,750

 

9.00

%  

October - 2022

Total notes payable

 

 

89,742

 

 

89,742

 

  

 

  

Less: Discount on notes payable

 

 

4,354

 

 

5,086

 

  

 

  

Total notes payable

 

$

85,388

 

$

84,656

 

  

 

  

 

Note 1: Formerly the Opus Credit Facility

Note 2: Interest rate is  9.0% plus one-month LIBOR Rate in excess of 2.5%.

Note 3: As a result of a one-year maturity date extension effective 2020, the interest rate increased by 1% to 9.0%.

Note 4: At March 31, 2020 and December 31,2019, $11.4 million and $6.0 million, respectively are included in Notes payable, short-term on the condensed consolidated balance sheets.

 

2019 Notes (formerly the Opus Credit Facility Agreement)

As of December 31, 2019, Opus Point Healthcare Innovations Fund, LP (“OPHIF”) dissolved and distributed it assets among its limited partners. Following the distribution, the facility is comprised of three separate notes herein referred to as the 2019 Notes. The allocation of the $9.0 million facility was as follows: DAK Capital Inc.: $3.8 million; Fortress’s Chairman, President and Chief Executive Officer (Lindsay A. Rosenwald):  $2.9 million; and Fortress’s Executive Vice President, Strategic Development (Michael S. Weiss):  $2.3 million. Terms of the 2019 Notes did not change.

Interest Expense

The following table shows the details of interest expense for all debt arrangements during the periods presented. Interest expense includes contractual interest and amortization of the debt discount and amortization of fees represents fees associated with loan transaction costs, amortized over the life of the loan:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

 

2020

 

2019

($ in thousands)

    

Interest

    

Fees 1

    

Total

    

Interest

    

Fees 1

    

Total

IDB Note

 

$

84

 

$

 —

 

$

84

 

$

83

 

$

 —

 

$
83

2017 Subordinated Note Financing

 

 

1,084

 

 

312

 

 

1,396

 

 

1,028

 

 

363

 

 

1,391

2019 Notes

 

 

269

 

 

 —

 

 

269

 

 

281

 

 

113

 

 
394

2018 Venture Notes

 

 

433

 

 

176

 

 

609

 

 

429

 

 

146

 

 
575

LOC Fees

 

 

15

 

 

 —

 

 

15

 

 

15

 

 

 —

 

 

15

Mustang Horizon Notes

 

 

341

 

 

259

 

 

600

 

 

11

 

 

 —

 

 

11

Note Payable2

 

 

150

 

 

 —

 

 

150

 

 

 —

 

 

 —

 

 

 —

Other

 

 

 2

 

 

 —

 

 

 2

 

 

 —

 

 

 —

 

 

 —

Total Interest Expense and Financing Fee

 

$

2,378

 

$

747

 

$

3,125

 

$

1,847

 

$

622

 

$

2,469

 

Note 1: Amortization of fees

Note 2: Imputed interest expense related to Ximino purchase (see Note 9).