Quarterly report pursuant to Section 13 or 15(d)

DEBT OBLIGATIONS

v3.7.0.1
DEBT OBLIGATIONS
6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
DEBT OBLIGATIONS
DEBT OBLIGATIONS

The following table presents certain information regarding the Company’s debt obligations at June 30, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
Repurchase Agreements (C)
 
 
 
 

 
 

 
 
 
 
 
 

 
 
 
 

FNMA/FHLMC Securities
 
Jun 2017
 
$
307,689

 
$
307,689

 
Jul 2017
 
1.35%
 
1.35
%
 
0.1
 
$

 
 
 
 
307,689

 
307,689

 
 
 
 
 
1.35
%
 
0.1
 

Credit Facilities and Capital Leases
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional Golf Term Loan (D)(E)
 
June 2016
 
102,000

 
99,288

 
Jul 2019
 
LIBOR+4.70%
 
7.92
%
 
2.0
 
102,000

Vineyard II
 
Dec 1993
 
200

 
200

 
Dec 2043
 
2.20%
 
2.20
%
 
26.5
 
200

Capital Leases (Equipment)
 
Jun 2014 - Jun 2017
 
16,643

 
16,643

 
Sep 2018 - Dec 2022
 
3.00% to 16.16%
 
6.58
%
 
3.8
 

 
 
 
 
118,843

 
116,131

 
 
 
 
 
7.72
%
 
2.3
 
102,200

Corporate
 
 
 
 

 
 

 
 
 
 
 
 

 
 
 
 

Junior subordinated notes payable (F)
 
Mar 2006
 
51,004

 
51,212

 
Apr 2035
 
LIBOR+2.25%
 
3.39
%
 
17.8
 
51,004

 
 
 
 
51,004

 
51,212

 
 
 
 
 
3.39
%
 
17.8
 
51,004

Total debt obligations
 
 
 
$
477,536

 
$
475,032

 
 
 
 
 
3.13
%
 
2.5
 
$
153,204


(A)
Weighted average, including floating and fixed rate classes.
(B)
Including the effect of deferred financing costs.
(C)
The repurchase agreement had $0.2 million of accrued interest payable at June 30, 2017. The counterparty on the repurchase agreement is Citi. The Company has margin exposures on the repurchase agreement related to the financing of FNMA/FHLMC securities. The underlying collateral of the repurchase agreement is fixed rate FNMA/FHLMC securities with the following value at June 30, 2017: $310.7 million outstanding face amount, $318.0 million amortized cost basis, $319.2 million carrying value and a weighted average life of 7.0 years. To the extent that the value of the collateral underlying the repurchase agreement declines, the Company may be required to post margin, which could significantly impact its liquidity.
(D)
The Traditional Golf term loan is collateralized by 22 golf properties. The carrying amount of the Traditional Golf term loan is reported net of amortized deferred financing costs of $2.7 million as of June 30, 2017.
(E)
Interest rate based on 1 month LIBOR plus 4.70% with a LIBOR floor of 1.80%. At the time of closing, the Company purchased a co-terminus LIBOR interest rate cap of 1.80%.
(F)
Interest rate based on 3 month LIBOR plus 2.25%.

See Note 4 for information about the FNMA/FHLMC repurchase agreement activity for the six months ended June 30, 2017.

Traditional Golf leases certain golf carts and other equipment under capital lease agreements. The agreements typically provide for minimum rentals plus executory costs. Lease terms range from 36 to 66 months. Certain leases include bargain purchase options at lease expiration.

The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of June 30, 2017 are as follows:

July 1, 2017 - December 31, 2017
$
2,560

2018
5,127

2019
4,982

2020
3,700

2021
2,126

2022
434

Thereafter

Total minimum lease payments
18,929

Less: imputed interest
(2,286
)
Present value of net minimum lease payments
$
16,643



The Company’s credit facilities contain various customary loan covenants, including certain coverage ratios. The Company was in compliance with all of these covenants as of June 30, 2017.