Drive Shack Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

DEBT OBLIGATIONS

DEBT OBLIGATIONS

3 Months Ended

Mar. 31, 2018

The following table presents certain information regarding the Company’s debt obligations at March 31, 2018:




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
Credit Facilities and Capital Leases
Traditional Golf term loan (C)(D)	June 2016	102,000		100,255		Jul 2019	LIBOR+4.70%	7.92	%	1.3	102,000
Vineyard II	Dec 1993	200		200		Dec 2043	2.20%	2.20	%	25.7	200
Capital leases (Equipment)	Jun 2014 - Mar 2018	16,593		16,593		Sep 2018 - Oct 2023	3.00% to 16.16%	6.61	%	3.5	—
		118,793		117,048				7.72	%	1.6	102,200
Less current portion of obligations under capital leases		4,892		4,892
Credit facilities and obligations under capital leases - noncurrent		113,901		112,156
Corporate
Junior subordinated notes payable (E)	Mar 2006	51,004		51,206		Apr 2035	LIBOR+2.25%	3.99	%	17.1	51,004
Total debt obligations		$	169,797	$	168,254			6.59	%	6.3	$	153,204


(A)	Weighted average, including floating and fixed rate classes.


(B)	Including the effect of deferred financing costs.


(C)	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 $1.7 million as of March 31, 2018.


(D)	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%.


(E)	Interest rate based on 3 month LIBOR plus 2.25%.

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 March 31, 2018 are as follows:



April 1, 2018 - December 31, 2018	$	4,384
2019	5,709
2020	4,431
2021	2,864
2022	1,091
2023	190
Total minimum lease payments	18,669
Less: imputed interest	2,076
Present value of net minimum lease payments	$	16,593

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 March 31, 2018.