Annual report pursuant to Section 13 and 15(d)

DEBT OBLIGATIONS (Tables)

v3.6.0.2
DEBT OBLIGATIONS (Tables)
12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Schedule of debt obligations and related hedges
The following table presents certain information regarding Drive Shack Inc.'s debt obligations and related hedges:
 
December 31, 2016
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Obligation/Collateral
Month Issued
 
Outstanding Face Amount
 
Carrying Value
 
Final Stated Maturity
 
Weighted Average Coupon (A)
 
Weighted Average Funding Cost (B)
 
Weighted Average Life (Years)
 
Face Amount of Floating Rate Debt
 
Outstanding Face Amount
 
Carrying Value
CDO Bonds Payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CDO VI
Apr 2005
 
$

 
$

 
 
—%
 
%
 
0.0
 
$

 
$
92,933

 
$
92,933

 
 
 

 

 
 
 
 
 
%
 
0.0
 

 
92,933

 
92,933

Other Bonds & Notes Payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NCT 2013-VI IMM-1
Nov 2013
 

 

 
 
—%
 
%
 
0.0
 

 
4,984

 
4,672

Mezzanine Note Payable
Oct 2015
 

 

 
 
—%
 
%
 
0.0
 

 
11,660

 
11,490

 
 
 

 

 
 
 
 
 
%
 
0.0
 

 
16,644

 
16,162

Repurchase Agreements (C)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FNMA/FHLMC securities
Dec 2016
 
600,964

 
600,964

 
Jan 2017
 
1.03%
 
1.03
%
 
0.1
 

 
348,625

 
348,625

Golf Loans
Aug 2015
 

 

 
 
—%
 
%
 
0.0
 

 
70,000

 
69,833

 
 
 
600,964

 
600,964

 
 
 
 
 
%
 
0.0
 

 
418,625

 
418,458

Golf Credit Facilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Golf Term Loan (D)(E)
Jun 2016
 
102,000

 
98,680

 
Jul 2019
 
LIBOR + 4.70%
 
7.92
%
 
2.5
 
102,000

 

 

Vineyard II
Dec 1993
 
200

 
200

 
Dec 2043
 
2.20%
 
2.20
%
 
26.9
 
200

 
200

 
200

Capital Leases (Equipment)
May 2014 - Dec 2016
 
16,404

 
16,404

 
Sep 2018 - Jul 2022
 
3.00% to 16.16%
 
6.56
%
 
4.1
 

 
11,058

 
11,058

 
 
 
118,604

 
115,284

 
 
 
 
 
7.72
%
 
2.8
 
102,200

 
11,258

 
11,258

Corporate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Junior subordinated notes payable
Mar 2006
 
51,004

 
51,217

 
Apr 2035
 
LIBOR + 2.25%
 
3.11
%
 
18.3
 
51,004

 
51,004

 
51,225

 
 
 
51,004

 
51,217

 
 
 
 
 
3.11
%
 
18.3
 
51,004

 
51,004

 
51,225

Subtotal debt obligation
 
 
770,572

 
767,465

 
 
 
 
 
2.17
%
 
1.7
 
$
153,204

 
590,464

 
590,036

Financing on subprime mortgage loans subject to call option
(F)
 

 

 
 
 
 
 
 
 
 
 
 
 
380,806

 
380,806

Total debt obligation
 
 
$
770,572

 
$
767,465

 
 
 
 
 
 
 
 
 
 
 
$
971,270

 
$
970,842

See notes on next page.
(A)
Weighted average, including floating and fixed rate classes.
(B)
Including the effect of deferred financing cost.
(C)
These repurchase agreements had $0.3 million accrued interest payable at December 31, 2016. The counterparties on these repurchase agreements are Citi ($242.0 million) and Jeffries ($359.0 million). Drive Shack Inc. has margin exposure on $601.0 million of repurchase agreements related to the financing of FNMA/FHLMC securities. The underlying collateral of the repurchase agreements are fixed rate FNMA/FHLMC securities with the following value at December 31, 2016: $619.8 million outstanding face amount, $627.3 million amortized cost basis, $627.3 million carrying value and a weighted average life of 8.4 years. To the extent that the value of the collateral underlying these repurchase agreements declines, Drive Shack Inc. may be required to post margin, which could significantly impact its liquidity.
(D)
The golf term loan is collateralized by 22 Traditional Golf properties. The carrying amount of the golf term loan is reported net of deferred financing costs of $3.3 million as of December 31, 2016.
(E)
Interest rate based on 30 day LIBOR plus 4.70% with a LIBOR floor of 1.80%. At the time of closing, Drive Shack Inc. purchased a co-terminus LIBOR interest rate cap of 1.80%.
(F)
See Note 6 regarding the securitizations of Subprime Portfolios I and II.
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 December 31, 2016 are as follows:
2017
$
4,666

2018
4,662

2019
4,511

2020
3,203

2021
1,626

Thereafter
157

Total minimum lease payments
18,825

Less: imputed interest
2,421

Present value of net minimum lease payments
$
16,404

Schedule of contractual maturities of debt obligations
Drive Shack Inc.’s debt obligations (gross of $3.1 million of discounts at December 31, 2016) have contractual maturities as follows:
 
Nonrecourse
 
Recourse
 
Total
2017
$
3,699

 
$
600,964

 
$
604,663

2018
3,945

 

 
3,945

2019
4,058

 

 
4,058

2020
104,984

 

 
104,984

2021
1,564

 

 
1,564

Thereafter
354

 
51,004

 
51,358

Total
$
118,604

 
$
651,968

 
$
770,572