Business Context and Reporting Period
This Form 8-K Current Report was filed by AMERCO (parent company of U-Haul Holding Co) on March 7, 2019. The filing reports a specific corporate event regarding the issuance of new debt securities rather than a standard quarterly or annual financial performance review.
Key Financial Metrics
The filing details a public offering of Fixed Rate Secured Notes Series UIC-1I with the following characteristics:
- Aggregate Principal Amount: Up to $6,697,200.
- Interest Rates: Between 3.75% and 5.75% per year.
- Maturity: Between five and fifteen years from the issue date.
- Amortization: Fully amortizing over respective terms.
- Payment Schedule: Principal and interest credited quarterly in arrears to U-Haul Investors Club accounts.
The filing does not provide data on revenue, profit, cash flow, margins, or overall liquidity for the reporting period.
Material Changes and Use of Proceeds
The primary material change is the execution of the Thirty-Fifth Supplemental Indenture and a Pledge and Security Agreement. The Company intends to use the proceeds from the offering to:
- Reimburse subsidiaries and affiliates for the cost of acquisition and development of the collateral pledged.
- Fund general corporate purposes.
Outlook, Risks, and Contingencies
Security and Subordination: The Notes are secured by a first-priority lien on specific collateral. However, they are not guaranteed by any subsidiary of the Company. Consequently, the Notes are effectively subordinated to all existing and future claims of creditors of the Company's subsidiaries.
Covenants: The agreements include covenants requiring the maintenance of a first-priority lien on the collateral and prohibit additional liens on the collateral, subject to certain permitted liens.
Investor Eligibility: Investors in the Series UIC-1I Notes must first join the U-Haul Investors Club.
Key Facts for Investor Verification
- Verify the specific collateral pledged to secure the $6,697,200 in notes.
- Confirm the subordination status relative to subsidiary debt obligations.
- Review the Thirty-Fifth Supplemental Indenture (Exhibit 4.1) for detailed covenants and permitted liens.
- Check the U-Haul Investors Club requirements for potential investors.