Table:
|  | December 31, |  |
| --- | --- | --- |
|  | 2019 | 2018 |
| Term loan, face value(1) | $393,000 | $397,000 |
| Unamortized debt discount (2) | (3,115) | (3,728) |
| Unamortized debt issuance costs(2) | (5,388) | (6,450) |
| Term loan | $384,497 | $386,822 |
Paragraphs:
GreenSky, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (United States Dollars in thousands, except per share data, unless otherwise stated)
Key details of the term loan are as follows:
(1) The principal balance of the term loan is scheduled to be repaid on a quarterly basis at an amortization rate of 0.25% per quarter through December 31, 2024, with the balance due at maturity. For each of the next five years, principal repayments on the term loan are expected to be $4,000.
(2) For the years ended December 31, 2019 and 2018, debt discount of $613 and $593, respectively, and debt issuance costs of $1,062
and $1,091, respectively, were amortized into interest expense in the Consolidated Statements of Operations. Giving effect to the
amortization of debt discount and debt issuance costs on the term loan, the effective interest rates were 5.95% and 5.99% during the
years ended December 31, 2019 and 2018, respectively.
Question:
How is the principal balance of the term loan scheduled to be repaid?
Answer: on a quarterly basis at an amortization rate of 0.25% per quarter through December 31, 2024, with the balance due at maturity.