| Schedule of debt obligations and related hedges |
The following table presents certain information regarding Newcastle’s debt obligations at September 30, 2016:
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Collateral |
Debt Obligation/Collateral |
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Month Issued |
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Outstanding
Face
Amount |
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Carrying
Value |
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Final Stated Maturity |
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Weighted
Average
Coupon (A) |
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Weighted Average
Funding
Cost (B) |
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Weighted Average Life(Years) |
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Face Amount of
Floating Rate Debt |
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Outstanding Face Amount |
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Amortized
Cost Basis |
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Carrying
Value |
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Weighted Average Life
(Years) |
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Floating Rate Face Amount |
Repurchase Agreements (C) |
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FNMA/FHLMC Securities |
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Sep 2016 |
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831,741 |
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831,741 |
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Oct 2016 |
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0.79% |
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0.79 |
% |
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0.1 |
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— |
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817,235 |
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858,097 |
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858,233 |
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6.0 |
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— |
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831,741 |
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831,741 |
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0.79 |
% |
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0.1 |
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— |
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817,235 |
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858,097 |
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858,233 |
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6.0 |
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— |
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Golf Credit Facilities |
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Golf Term Loan (D) |
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June 2016 |
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102,000 |
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98,380 |
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Jul 2019 |
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LIBOR+4.70% |
(E) |
7.92 |
% |
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2.7 |
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102,000 |
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N/A |
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N/A |
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N/A |
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N/A |
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N/A |
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Vineyard II |
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Dec 1993 |
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200 |
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200 |
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Dec 2043 |
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2.20% |
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2.20 |
% |
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27.2 |
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200 |
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N/A |
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N/A |
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N/A |
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N/A |
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N/A |
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Capital Leases (Equipment) |
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May 2014 - Sep 2016 |
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16,117 |
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16,117 |
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Mar 2022 |
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3.00% to 16.16% |
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6.56 |
% |
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4.3 |
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— |
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N/A |
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N/A |
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N/A |
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N/A |
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N/A |
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118,317 |
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114,697 |
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7.72 |
% |
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3.0 |
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102,200 |
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N/A |
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N/A |
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N/A |
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N/A |
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N/A |
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Corporate |
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Junior subordinated notes payable |
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Mar 2006 |
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51,004 |
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51,219 |
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Apr 2035 |
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LIBOR+2.25% |
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2.98 |
% |
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18.6 |
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51,004 |
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N/A |
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N/A |
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N/A |
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N/A |
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N/A |
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51,004 |
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51,219 |
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2.98 |
% |
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18.6 |
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51,004 |
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N/A |
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N/A |
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N/A |
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N/A |
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N/A |
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Subtotal debt obligations |
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1,001,062 |
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997,657 |
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1.70 |
% |
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1.4 |
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$ |
153,204 |
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$ |
817,235 |
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$ |
858,097 |
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$ |
858,233 |
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6.0 |
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$ |
— |
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Financing on subprime mortgage loans subject to call option (F) |
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353,347 |
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353,347 |
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Total debt obligations |
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$ |
1,354,409 |
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$ |
1,351,004 |
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See notes on next page.
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(A) |
Weighted average, including floating and fixed rate classes. |
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(B) |
Including the effect of deferred financing costs. |
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(C) |
These repurchase agreements had $0.1 million of accrued interest payable at September 30, 2016. The counterparties on these repurchase agreements are Citi ($399.1 million), Jefferies ($284.5 million), and Morgan Stanley ($148.1 million). Newcastle has margin exposures on a total of $831.7 million repurchase agreements related to the financing of FNMA/FHLMC securities. To the extent that the value of the collateral underlying these repurchase agreements declines, Newcastle may be required to post margin, which could significantly impact its liquidity. $831.7 million of repurchase agreements were repaid in October 2016 as part of the sale of the FNMA/FHLMC securities.
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(D) |
The golf term loan is collateralized by 22 golf properties. The carrying amount of the golf term loan is reported net of deferred financing costs of $3.6 million as of September 30, 2016.
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(E) |
Interest rate based on 30 day LIBOR plus 4.70% with a LIBOR floor of 1.80%. At the time of closing, Newcastle purchased a co-terminus LIBOR interest rate cap of 1.80%.
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(F) |
See Note 6 regarding the securitizations of Subprime Portfolios I and II. |
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| Schedule of future minimum lease payments under capital leases |
The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of September 30, 2016 are as follows:
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October 1, 2016 - December 31, 2016 |
$ |
1,104 |
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2017 |
4,418 |
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2018 |
4,412 |
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2019 |
4,260 |
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2020 |
2,938 |
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2021 |
1,360 |
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Thereafter |
89 |
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Total minimum lease payments |
18,581 |
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Less: imputed interest |
(2,464 |
) |
Present value of net minimum lease payments |
$ |
16,117 |
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