Note 4 - Long-term Debt

3 Months Ended

Mar. 31, 2016

Note 4. Long-term Debt

Long-term debt consists of the following (in thousands):

	March 31, 201 6			December 31, 201 5
	(unaudited)
Senior Secured Credit Facility, interest payable quarterly (cash interest at 6%), principal due November 1, 2018, net of unamortized discount at March 31, 2016 and December 31, 2015 of $5.1 million and $5.6 million, respectively (related party)	$	43,401		$	42,977
Special Improvement District assessment, payable in 32 semi-annual installments including interest at a fixed rate of 5.8%		636			675
Long-term debt		44,037			43,652
Less current portion of long-term debt		(83	)		(81	)
Long-term debt, net	$	43,954		$	43,571

Senior Secured Credit Facility (Related Party)

On November 1, 2011, the Company and Aliante Gaming entered into the Senior Secured Credit Facility, which provided for $45.0 million in principal amount of Senior Secured Loans, which were deemed made on the same date without any funding being provided. The Senior Secured Credit Facility represented an already outstanding obligation of Aliante Gaming as of November 1, 2011 and provided for interest to be paid at a rate to be elected by Aliante Gaming, such rate being either (i) 10% per annum, payable in kind and added to the principal amount of the Senior Secured Loans quarterly in arrears and subsequently treated as principal of the Senior Secured Loans, or (ii) 6% per annum, which interest will be payable in cash quarterly in arrears. As a result of accruing interest through June 30, 2014 in kind, and the $10 million pay down in the second quarter of 2015, the principal outstanding balance as of March 31, 2016 and December 31, 2015 was $48.5 million. The outstanding principal amounts of the Senior Secured Loans and all accrued unpaid interest was paid in full in April 2016 with the proceeds from the Wells Fargo Revolving Credit Facility.

The Senior Secured Credit Facility is guaranteed by the Company and by each domestic wholly owned subsidiary of Aliante Gaming and is secured by a first-priority (a) pledge of 100% of the Company’s equity interest in Aliante Gaming, (b) pledge of 100% of the equity interests in Aliante Gaming’s domestic subsidiaries (if any) and 65% of the equity interests of Aliante Gaming’s “first-tier” foreign subsidiaries (if any) and (c) security interest in substantially all of Aliante Gaming’s tangible and intangible assets, as well as those of each subsidiary guarantor (if any), in each case, other than any assets that may not be pledged pursuant to applicable gaming laws and subject to customary exceptions. The Senior Secured Credit Facility includes various covenants and mandatory prepayments which are customary for similar types of financings and does not contain any financial maintenance covenants.

Fair Value of Debt

It was not practicable to determine the fair market value of our Senior Secured Facility due to the lack of comparable credit facilities and the involvement of our majority shareholder in negotiating the terms and conditions directly with the lender.

ALST Casino Holdco, LLC 10-Q