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

Annual report pursuant to Section 13 and 15(d)

DEBT OBLIGATIONS (Tables)

DEBT OBLIGATIONS (Tables)

12 Months Ended

Dec. 31, 2012

	December 31, 2012																													December 31, 2011
																		Collateral
Debt Obligation/Collateral	Month Issued	Outstanding Face Amount		Carrying Value		Final Stated Maturity		Unhedged Weighted Average Funding Cost (A)			Weighted Average Funding Cost (B)			Weighted Average Maturity (Years)		Face Amount of Floating Rate Debt		Outstanding Face Amount (C)		Amortized Cost Basis (C)		Carrying Value (C)		Weighted Average Maturity (Years)		Floating Rate Face Amount (C)		Aggregate Notional Amount of Current Hedges (D)		Outstanding Face Amount		Carrying Value
CDO Bonds Payable
CDO IV (E)	Mar 2004	$	79,898	$	79,811	Mar 2039			1.83	%		5.02	%		1.3	$	69,098	$	168,111	$	155,646	$	151,250		1.9	$	43,202	$	69,098	$	106,645	$	106,454
CDO VI (E)	Apr 2005		91,578		91,578	Apr 2040			0.87	%		5.35	%		4.8		88,495		180,039		92,932		119,184		3.1		49,393		88,495		91,141		91,141
CDO VIII	Nov 2006		518,501		517,541	Nov 2052			0.78	%		2.22	%		2.4		510,901		707,189		523,202		551,058		2.9		385,978		154,450		577,133		575,736
CDO IX	May 2007		400,938		402,424	May 2052			0.59	%		0.59	%		2.3		400,938		637,873		517,982		527,903		3.2		326,849		-		480,125		482,329
CDO X (F)	Jul 2007		-		-	Jul 2052			N/A			-			-		-		-		-		-		-		-		-		1,150,000		1,147,945
			1,090,915		1,091,354							2.08	%		2.5		1,069,432		1,693,212		1,289,762		1,349,395		2.9		805,422		312,043		2,405,044		2,403,605
Other Bonds and Notes Payable
MH Loans Portfolio I (G)	Apr 2010		70,056		66,199	Jul 2035			6.25	%		6.25	%		4.2		-		118,746		100,124		100,124		6.8		909		-		70,109		69,256
MH Loans Portfolio II (G)	May 2011		117,907		117,191	Dec 2033			4.40	%		4.40	%		3.9		-		153,193		150,123		150,123		5.6		25,727		-		126,856		125,630
Residential Mortgage Loans	Aug 2006		-		-		N/A		N/A			-			-		-		-		-		-		-		-		-		5,491		5,491
			187,963		183,390							5.07	%		4.0		-		271,939		250,247		250,247		6.1		26,636		-		202,456		200,377
Repurchase Agreements
CDO Securities (I)	Dec 2012		5,658		5,658	Mar 2013		LIBOR+2.25%				2.46	%		0.2		5,658		-		-		-		-		-		-		8,728		8,728
Non-agency RMBS (J)	Various		150,922		150,922	Jan 2013		LIBOR+2.00%				2.21	%		0.1		150,922		344,177		215,212		228,493		6.9		344,177		-		-		-
FNMA/FHLMC securities (K)	Various		772,855		772,855	Various			0.53	%		0.53	%		0.1		772,855		768,619		818,866		820,536		3.5		768,619		N/A		231,012		231,012
			929,435		929,435							0.81	%		0.1		929,435		1,112,796		1,034,078		1,049,029		4.6		1,112,796		-		239,740		239,740
Mortgage Notes Payable
BPM Senior Living Facilities	Jul 2012		88,400		88,400	Aug 2019			3.44	%		3.44	%		6.2		23,400		N/A		138,131		138,131		N/A		-		23,400		-		-
Utah Senior Living Facilities	Nov 2012		16,000		16,000	Oct 2017		LIBOR+3.75% (H)				4.75	%		4.8		16,000		N/A		22,262		22,262		N/A		-		-		-		-
Courtyards Senior living facilities	Dec 2012		16,125		16,125	Oct 2017		LIBOR+3.75% (H)				4.75	%		4.8		16,125		N/A		21,494		21,494		N/A		-		-		-		-
			120,525		120,525							3.79	%		5.8		55,525		N/A		181,887		181,887		N/A		-		23,400		-		-
Corporate
Junior subordinated notes payable	Mar 2006		51,004		51,243	Apr 2035			7.574	% (M)		7.40	%		22.3		-		-		-		-		-		-		-		51,004		51,248
			51,004		51,243							7.40	%		22.3		-		-		-		-		-		-		-		51,004		51,248
Subtotal debt obligations			2,379,842		2,375,947							2.02	%		2.3	$	2,054,392	$	3,077,947	$	2,755,974	$	2,830,558		3.8	$	1,944,854	$	335,443	$	2,898,244	$	2,894,970
Financing on subprime mortgage loans subject to call option	(L)		406,217		405,814																										406,217		404,723
Total debt obligations		$	2,786,059	$	2,781,761																									$	3,304,461	$	3,299,693

Schedule of Junior Subordinated Notes Payable Exchange Agreement

Consideration

Repurchased junior

Reissued CDO

subordinated notes

Cash

bonds

Total

Outstanding face amount

52,094

9,715

37,625

47,340

Weighted average coupon

7.574

% (A)

N/A

LIBOR + 0.66

% (B)

Maturity

April 2035

June 2052

Assets within the
respective CDOs

Collateral

General credit of Newcastle

Schedule of Debt Maturity

Newcastle’s debt obligations (gross of $4.3 million of discounts at December 31, 2012) have contractual maturities as follows:

	Nonrecourse		Recourse		Total
2013	$	4,786	$	925,192	$	929,978
2014		1,713		-		1,713
2015		2,274		-		2,274
2016		2,305		-		2,305
2017		32,763		-		32,763
Thereafter		1,817,026		-		1,817,026
Total	$	1,860,867	$	925,192	$	2,786,059