Current report filing

DEBT OBLIGATIONS (Tables)

v2.4.0.8
DEBT OBLIGATIONS (Tables)
 12 Months Ended
Dec. 31, 2013
Debt Obligations Tables  
Schedule of debt obligations from continuing operations

The following table presents certain information regarding Newcastle’s debt obligations and related hedges from continuing operations:

                                                                               
    December 31, 2013   December 31, 2012  
                                      Collateral              
                    Unhedged                                     Aggregate          
                    Weighted     Weighted   Weighted   Face               Weighted   Floating   Notional          
        Outstanding       Final   Average     Average   Average   Amount   Outstanding   Amortized       Average   Rate   Amount of   Outstanding      
    Month   Face   Carrying   Stated   Funding     Funding   Maturity   of Floating   Face   Cost   Carrying   Maturity   Face   Current   Face   Carrying  
Debt Obligation/Collateral   Issued   Amount   Value   Maturity   Cost (A)     Cost (B)   (Years)   Rate Debt   Amount (C)   Basis (C)   Value (C)   (Years)   Amount (C)   Hedges(D)   Amount   Value  
CDO Bonds Payable                                                                    
CDO VI (E)   Apr 2005 $ 92,018 $ 92,018   Apr 2040   0.85%     5.35%   5.5 $ 88,727 $ 166,452 $ 88,965 $ 123,478   2.3 $ 40,482 $ 88,727 $ 91,578 $ 91,578  
CDO VIII   Nov 2006   264,733   264,277   Nov 2052   0.88%     2.45%   1.5   257,133   421,487   317,202   346,101   1.7   184,585   105,031   518,501   517,541  
CDO IX   May 2007   186,765   188,230   May 2052   0.56%     0.50%   0.6   186,765   433,012   357,224   366,581   1.9   162,115   —   400,938   402,424  
Repaid Debt                                                             79,898   79,811  
        543,516   544,525             2.26%   1.9   532,625   1,020,951   763,391   836,160   1.9   387,182   193,758   1,090,915   1,091,354  
Other Bonds & Notes Payable                                                                    
MH loans Portfolio I (F)   Apr 2010   53,753   50,424   Jul 2035   6.56%     6.56%   4.1   —   102,681   91,924   91,924   6.1   612   —   70,056   66,199  
MH loans Portfolio II   May 2011   93,863   93,536   Dec 2033   4.70%     4.70%   3.8   —   128,975   128,117   128,117   4.9   21,321   —   117,907   117,191  
NCT 2013-VI IMM-1 (I)   Nov 2013   96,129   86,319   Apr 2040   LIBOR+0.25%     0.42%   2.0   96,129   —   —   —   0.0   —     —   —   —  
        243,745   230,279             3.50%   3.1   96,129   231,656   220,041   220,041   5.4   21,933   —   187,963   183,390  
Repurchase Agreements (G)                                                                      
FNMA/FHLMC securities (H)   Dec 2013   516,134   516,134   Jan 2014   0.40%     0.40%   0.1   516,134   514,994   547,639   551,270   3.6   514,994   —   772,855   772,855  
CDO Securities (I)   Dec 2013   15,094   15,094   Jan 2014   LIBOR+1.65%     1.82%   0.1   15,094   —   —   —   0.0   —   —   5,658   5,658  
Residential Mortgage Loans   Nov 2013   25,119   25,119   Nov 2014   LIBOR+2.00%     2.17%   0.9   25,119   36,029   27,173   27,173   5.5   36,029   —   —   —  
Repaid Debt                                                             150,922   150,922  
        556,347   556,347             0.5%   0.1   556,347   551,023   574,812   578,443   3.7   551,023   —   929,435   929,435  
                                                                       
Mortgage Notes Payable                                                                      
                Aug 2018 to                                                      
Fixed Rate       878,579   878,244   Jan 2024   1.43% to 4.30%   (J)(K) 4.72%   7.4   —   N/A   1,193,583   1,193,583   N/A   N/A   —   88,400   88,400  
                Aug 2016 to   LIBOR+3.50% to                                                  
Floating Rate       198,584   198,584   Dec 2018   LIBOR+3.75%     4.88%   4.1   198,584   N/A   270,175   270,175   N/A   N/A   —   32,125   32,125  
                                                                       
      1,077,163 1,076,828             4.75%   6.8 198,584   N/A 1,463,758 1,463,758   N/A   N/A   — 120,525 120,525  
                                                                                     

 

                                                                                         
    December 31, 2013   December 31, 2012  
                                          Collateral                  
                        Unhedged                                     Aggregate              
                        Weighted     Weighted   Weighted   Face               Weighted       Notional              
        Outstanding       Final   Average     Average   Average   Amount   Outstanding   Amortized       Average   Floating   Amount of   Outstanding        
    Month   Face   Carrying   Stated   Funding     Funding   Maturity   of Floating   Face   Cost   Carrying   Maturity   Rate Face   Current   Face   Carrying  
    Issued   Amount   Value   Maturity   Cost (A)     Cost (B)   (Years)   Rate Debt   Amount (C)   Basis (C)   Value (C)   (Years)   Amount (C)   Hedges(D)   Amount   Value  
Golf Credit Facilities (Q)                                                                                      
First Lien Loan   Dec 2013     46,922     46,922   Dec 2018   LIBOR+4.00% (N) 4.50%   4.0   46,922   N/A   —   —   N/A   N/A   —     —     —  
Second Lien Loan   Dec 2013     105,576     105,576   Dec 2018   5.50%     5.50%   4.0   —   N/A   —   —   N/A   N/A   —     —     —  
          152,498     152,498             5.19%   4.0   46,922   N/A   —   —   N/A   N/A   —     —     —  
Corporate                                                                                  
                                                                                   
Junior subordinated notes payable   Mar 2006     51,004     51,237   Apr 2035   7.57% (O) 7.39%   21.3   —   —   —   —   —   —   —     51,004     51,243  
          51,004     51,237             7.39%   21.3   —   —   —   —   —   —   —     51,004     51,243  
                                                                             
Subtotal debt obligation         2,624,273     2,611,714             3.28%   4.2 $ 1,430,607 $ 1,803,630 $ 3,022,002 $ 3,098,402   2.9 $ 960,138 $ 193,758     2,379,842     2,375,947  
                                                                             
Financing on subprime mortgage loans subject to call option   (P)     406,217     406,217                                                   406,217     405,814  
                                                                             
Total debt obligation       $ 3,030,490   $ 3,017,931                                                 $ 2,786,059   $ 2,781,761  
     
  (A) Weighted average, including floating and fixed rate classes.
  (B) Including the effect of applicable hedges.
  (C) Excluding (i) restricted cash held in CDOs to be used for principal and interest payments of CDO debt, and (ii) operating cash from the senior housing business.
  (D) Including $88.7 million notional amount of interest rate swap in CDO VI, which was an economic hedge not designed as a hedge for accounting purposes.
  (E) This CDO was not in compliance with its applicable over collateralization tests as of December 31, 2013. Newcastle is not receiving cash flows from this CDO (other than senior management fees and cash flows on senior classes of bonds that were repurchased), since net interest is being used to repay debt, and expects thisCDO to remain out of compliance for the forseeable future.
  (F) Excluding $20.5 million of other bonds payable relating to MH loans Portfolio I sold to certain Newcastle CDOs, which were eliminated in consolidation.
  (G) These repurchase agreements had $0.1 million accrued interest payable at December 31, 2013. $556.3 million face amount of these repurchase agreements were renewed subsequent to December 31, 2013. The counterparties on these repurchase agreements are Bank of America ($299.1 million), Barclays ($138.0 million), Citi ($35.6 million), Goldman Sachs ($7.4 million), Nomura ($51.1 million) and Credit Suisse ($25.1 million).
  (H) Interest rates on these repurchase agreements are fixed, but will be reset on a short-term basis.
  (I) Represents refinancing of repurchased Newcastle CDO bonds where collateral is, therefore, eliminated in consolidation period.
  (J) For loans totaling $41.2 million issued in August 2013, Newcastle bought down the interest rate to 4% for the first two years. Thereafter, the interest rate will range from 5.99% to 6.76%.
  (K) For a loan with a total balance of $11.4 million, the interest rate for the first two years is based on the applicable US Treasury Security rates. The interest rate for years 3 through 5 is 4.5%, 4.75% and 5.0%, respectively.
  (L) This financing has a LIBOR floor of 0.75%.
  (M) This financing has a LIBOR floor of 1.0%
  (N) Interest rate on this is based on 3 month LIBOR with a LIBOR floor of 0.5%.
  (O) Issued in April 2006 and July 2007. Secured by the general credit of Newcastle. See Note 7 regarding the securitizations of Subprime Portfolio I and II.
  (P) LIBOR +2.25% after April 2016.
  (Q) These facilities are collateralized by all the assets of the respective businesses.
Schedule of debt obligations from discontinued operations

The following table presents certain information regarding Newcastle’s debt obligations from discontinued operations:

                                                                                         
    December 31, 2013   December 31, 2012  
                                          Collateral                  
                        Unhedged                                     Aggregate              
                        Weighted     Weighted   Weighted   Face               Weighted       Notional              
        Outstanding       Final   Average     Average   Average   Amount   Outstanding   Amortized       Average   Floating   Amount of   Outstanding        
    Month   Face   Carrying   Stated   Funding     Funding   Maturity   of Floating   Face   Cost   Carrying   Maturity   Rate Face   Current   Face   Carrying  
Media Credit Facilities   Issued   Amount   Value   Maturity   Cost (A)     Cost (B)   (Years)   Rate Debt   Amount (C)   Basis (C)   Value (C)   (Years)   Amount (C)   Hedges(D)   Amount   Value  
GateHouse Credit Facilities: (Q)                                                                              
Revolving Credit Facilities   Nov 2013   $ 25,000   $ 25,000   Nov 2018   LIBOR+3.25%     3.42%   4.9 $ 25,000   N/A $             — $             —   N/A   N/A   $             —   $ —   $ —  
Term Loan A   Nov 2013     25,000     25,000   Nov 2018   LIBOR+4.25% (L) 5.00%   4.0   25,000   N/A   —   —   N/A   N/A   —     —     —  
Term Loan B   Nov 2013     50,000     50,000   Nov 2018   LIBOR+8.00% (L) 8.75%   4.0   50,000   N/A   —   —   N/A   N/A   —     —     —  
Second Lien Credit Facility   Nov 2013     50,000     49,016   Nov 2019   LIBOR+11.00%   11.17%   5.9   50,000   N/A   —   —   N/A   N/A   —     —     —  
Local Media Group Credit Facility   Sep 2013     33,000     33,000   Sep 2018   LIBOR+6.50%   (M) 7.50%   4.3   33,000   N/A   —   —   N/A   N/A   —     —     —  
Total debt obligation from discontinued operations       $ 183,000   $ 182,016             7.93%   4.7 $ 183,000   N/A   $             —   $             —   N/A   N/A   $             —   $              —   $ —  

See notes on next page.

     
  (A) Weighted average, including floating and fixed rate classes.
  (B) Including the effect of applicable hedges.
  (C) Excluding (i) restricted cash held in CDOs to be used for principal and interest payments of CDO debt, and (ii) operating cash from the senior housing business.
  (D) Including $88.7 million notional amount of interest rate swap in CDO VI, which was an economic hedge not designed as a hedge for accounting purposes.
  (E) This CDO was not in compliance with its applicable over collateralization tests as of December 31, 2013. Newcastle is not receiving cash flows from this CDO (other than senior management fees and cash flows on senior classes of bonds that were repurchased), since net interest is being used to repay debt, and expects thisCDO to remain out of compliance for the forseeable future.
  (F) Excluding $20.5 million of other bonds payable relating to MH loans Portfolio I sold to certain Newcastle CDOs, which were eliminated in consolidation.
  (G) These repurchase agreements had $0.1 million accrued interest payable at December 31, 2013. $556.3 million face amount of these repurchase agreements were renewed subsequent to December 31, 2013. The counterparties on these repurchase agreements are Bank of America ($299.1 million), Barclays ($138.0 million), Citi ($35.6 million), Goldman Sachs ($7.4 million), Nomura ($51.1 million) and Credit Suisse ($25.1 million).
  (H) Interest rates on these repurchase agreements are fixed, but will be reset on a short-term basis.
  (I) Represents refinancing of repurchased Newcastle CDO bonds where collateral is, therefore, eliminated in consolidation period.
  (J) For loans totaling $41.2 million issued in August 2013, Newcastle bought down the interest rate to 4% for the first two years. Thereafter, the interest rate will range from 5.99% to 6.76%.
  (K) For a loan with a total balance of $11.4 million, the interest rate for the first two years is based on the applicable US Treasury Security rates. The interest rate for years 3 through 5 is 4.5%, 4.75% and 5.0%, respectively.
  (L) This financing has a LIBOR floor of 0.75%.
  (M) This financing has a LIBOR floor of 1.0%
  (N) Interest rate on this is based on 3 month LIBOR with a LIBOR floor of 0.5%.
  (O) Issued in April 2006 and July 2007. Secured by the general credit of Newcastle. See Note 7 regarding the securitizations of Subprime Portfolio I and II.
  (P) LIBOR +2.25% after April 2016.
  (Q) These facilities are collateralized by all the assets of the respective businesses.
Schedule of contractual maturities of debt obligations

Newcastle’s debt obligations from continuing operations (gross of $12.5 million of discounts at December 31, 2013) have contractual maturities as follows:

                     
    Nonrecourse   Recourse   Total  
2014   $ 13,593   $ 556,347   $ 569,940  
2015     16,537     —     16,537  
2016     41,083     —     41,083  
2017     73,297     152,498     225,795  
2018     142,789     —     142,789  
Thereafter     2,034,346     —     2,034,346  
Total   $ 2,321,645   $ 708,845   $ 3,030,490