Drive Shack Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

DEBT OBLIGATIONS

DEBT OBLIGATIONS

12 Months Ended

Dec. 31, 2019

The following table presents certain information regarding the Company's debt obligations:



	December 31, 2019												December 31, 2018

Debt Obligation/Collateral	Month Issued	Outstanding Face Amount		Carrying Value		Final Stated Maturity	Weighted Average Coupon	Weighted Average Funding Cost (A)		Weighted Average Life (Years)	Face Amount of Floating Rate Debt		Outstanding Face Amount		Carrying Value
Credit Facilities and Finance Leases
Vineyard II	Dec 1993	200		200		Dec 2043	2.80%	2.80	%	24.0	200		200		200
Finance Leases (Equipment)	June 2014 - Dec 2019	19,079		19,079		Jan 2020 - Jul 2025	3.00% to 15.00%	7.27	%	3.5	—		15,778		15,778
		19,279		19,279				7.22	%	3.7	200		15,978		15,978
Less current portion of obligations under finance leases		6,154		6,154									5,489		5,489
Credit facilities and obligations under finance leases - noncurrent		13,125		13,125									10,489		10,489
Corporate
Junior subordinated notes payable (B)	Mar 2006	51,004		51,192		Apr 2035	3-mon LIBOR+2.25%	4.15	%	15.3	51,004		51,004		51,200
Total debt obligations		$	70,283	$	70,471			4.99	%	12.1	$	51,204	$	66,982	$	67,178


(A)	Including the effect of deferred financing cost.


(B)	Collateral for this obligation is the Company's general credit.

Credit Facilities

Traditional Golf is obligated under a $0.2 million loan with the City of Escondido, California (“Vineyard II”). The principal amount of the loan is payable in five equal installments upon reaching the "Achievement Date”, which is the date on which the previous 36-month period equals or exceeds 240,000 rounds of golf played on the property. As of December 31, 2019, 240,000 rounds of golf have not been achieved within an applicable 36-month period. The interest rate is adjusted annually and is equal to 1% plus a short-term investment return, as defined in the loan agreement. As of December 31, 2019, the interest rate is 2.80%.

Finance Leases - Equipment

The Company leases certain golf carts and other equipment under finance lease agreements. The agreements typically provide for minimum rentals plus executory costs. Lease terms range from 24-66 months. Certain leases include bargain purchase options at lease expiration.

See Note 6 for the future minimum lease payments required under the finance leases and the present value of the net minimum lease payments as of December 31, 2019.

Maturity Table

The Company’s debt obligations have contractual maturities as follows:



	Nonrecourse		Recourse		Total
2020	$	6,063	$	—	$	6,063
2021	5,088		—		5,088
2022	3,829		—		3,829
2023	3,060		—		3,060
2024	1,006		—		1,006
Thereafter	233		51,004		51,237
Total	$	19,279	$	51,004	$	70,283