| Schedule of debt obligations |
The following table presents certain information regarding Newcastle’s debt obligations and related hedges at March 31, 2014:
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March 31, 2014
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Collateral
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Aggregate
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Debt Obligation/Collateral
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Month Issued
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Outstanding
Face
Amount
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Carrying
Value
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Final Stated Maturity
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Weighted
Average
Coupon (A)
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Weighted Average
Funding
Cost (B)
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Weighted Average Life(Years)
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Face Amount of
Floating Rate Debt
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Outstanding Face Amount (C)
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Amortized
Cost Basis (C)
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Carrying
Value (C)
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Weighted Average Life
(Years)
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Floating Rate Face Amount (C)
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Notional
Amount of Current Hedges (D)
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CDO Bonds Payable
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CDO VI (E)
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Apr 2005
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$
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92,127
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$
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92,127
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Apr 2040
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0.83%
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5.35
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%
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5.8
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$
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88,782
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$
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163,128
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$
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88,930
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$
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125,858
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2.1
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$
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39,662
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$
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88,782
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CDO VIII
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Nov 2006
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190,341
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190,076
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Nov 2052
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1.07%
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3.87
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%
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1.3
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182,741
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341,619
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245,154
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275,210
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2.2
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140,043
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104,662
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CDO IX
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May 2007
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125,317
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126,610
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May 2052
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0.59%
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0.52
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%
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1.3
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125,317
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372,597
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306,412
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316,729
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2.4
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148,646
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—
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407,785
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408,813
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3.17
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%
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2.3
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396,840
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877,344
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640,496
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717,797
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2.3
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328,351
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193,444
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Other Bonds and Notes Payable
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MH Loans Portfolio I (F)
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Apr 2010
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50,448
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47,234
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Jul 2035
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6.65%
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6.65
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%
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4.1
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—
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98,925
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89,113
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89,113
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6.0
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555
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—
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MH Loans Portfolio II
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May 2011
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88,785
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88,524
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Dec 2033
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4.79%
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4.79
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%
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3.8
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—
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123,611
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123,277
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123,277
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4.8
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20,310
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—
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NCT 2013-VI IMM-1 (G)
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Nov 2013
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94,138
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85,547
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Apr 2040
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LIBOR+0.25%
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0.40
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%
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1.9
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94,138
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—
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—
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—
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—
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—
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—
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233,371
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221,305
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3.49
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%
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3.1
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94,138
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222,536
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212,390
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212,390
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5.3
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20,865
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—
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Repurchase Agreements (H)
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CDO securities (G)
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Dec 2013
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49,500
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49,500
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Apr 2014
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LIBOR+1.65%
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1.80
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%
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0.1
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49,500
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—
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—
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—
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—
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—
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—
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Residential Mortgage Loans
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Nov 2013
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25,363
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25,363
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Nov 2014
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LIBOR+2.00%
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2.15
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%
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0.6
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25,363
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35,074
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25,665
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25,665
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5.4
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35,074
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—
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74,863
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74,863
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1.92
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%
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0.3
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74,863
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35,074
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25,665
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25,665
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5.4
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35,074
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—
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Mortgage Notes Payable
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Fixed Rate - Managed Properties
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158,601
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158,751
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Aug 2018 to
Mar 2020
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1.56% to 4.12%
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(I) (J)
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4.50
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%
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5.0
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—
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N/A
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186,985
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186,985
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N/A
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N/A
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—
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Floating Rate - Managed Properties
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215,828
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215,828
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Aug 2016 to Jan 2019
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LIBOR +3.50% to LIBOR+3.75%
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4.81
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%
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3.9
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215,828
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N/A
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291,556
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291,556
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N/A
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N/A
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—
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Fixed Rate - Triple Net Lease Properties
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717,244
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717,244
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Jan 2024
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4.15%
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4.77
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%
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7.6
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—
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N/A
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987,094
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987,094
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N/A
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N/A
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—
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1,091,673
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1,091,823
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4.74
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%
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6.5
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215,828
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N/A
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1,465,635
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1,465,635
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N/A
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N/A
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—
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Golf Credit Facilities (K)
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First Lien Loan
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Dec 2013
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46,922
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46,922
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Dec 2018
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LIBOR+4.00%
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(L)
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4.50
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%
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3.8
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46,922
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N/A
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—
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—
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N/A
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N/A
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—
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Second Lien Loan
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Dec 2013
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105,576
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105,576
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Dec 2018
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5.50%
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5.50
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%
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3.8
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—
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N/A
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—
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—
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N/A
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N/A
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—
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Vineyard I
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Dec 1993
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263
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263
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Aug 2014
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11.37%
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11.37
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%
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0.4
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263
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N/A
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—
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—
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N/A
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N/A
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—
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Vineyard II
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Dec 1993
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200
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200
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Dec 2043
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2.13%
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2.13
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%
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29.7
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200
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N/A
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—
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—
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N/A
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N/A
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—
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152,961
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152,961
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5.20
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%
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3.8
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47,385
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N/A
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—
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—
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N/A
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N/A
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—
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Corporate
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Junior subordinated notes payable
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Mar 2006
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51,004
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51,236
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Apr 2035
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7.57%
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(M)
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7.39
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%
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21.1
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—
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—
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—
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—
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—
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—
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—
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51,004
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51,236
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7.39
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%
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21.1
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—
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—
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—
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—
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—
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—
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—
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Subtotal debt obligations
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2,011,657
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2,001,001
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4.28
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%
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5.2
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$
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829,054
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$
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1,134,954
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$
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2,344,186
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$
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2,421,487
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3.0
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$
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384,290
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$
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193,444
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Financing on subprime mortgage loans subject to call option (N)
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406,217
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406,217
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Total debt obligations
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$
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2,417,874
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$
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2,407,218
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(A)
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Weighted average, including floating and fixed rate classes.
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(B)
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Including the effect of applicable hedges and deferred financing cost.
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(C)
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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.
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(D)
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Including the $88.8 million portion of the notional amount of interest rate swap in CDO VI, which acted as an economic hedge that was not designated as a hedge for accounting purposes.
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(E)
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This CDO was not in compliance with its applicable over collateralization tests as of March 31, 2014. 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 this CDO to remain out of compliance for the foreseeable future.
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(F)
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Excluding $20.5 million of other bonds payable relating to MH loans Portfolio I sold to certain Newcastle CDOs, which were eliminated in consolidation.
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(G)
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Represents refinancing of repurchased Newcastle CDO bonds where collateral is, therefore, eliminated in consolidation.
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(H)
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These repurchase agreements had less than $0.1 million of accrued interest payable at March 31, 2014. $74.9 million face amount of these repurchase agreements were renewed subsequent to March 31, 2014. The counterparties on these repurchase agreements are Bank of America ($49.5 million) and Credit Suisse ($25.4 million).
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(I)
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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%.
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(J)
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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.
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(K)
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These facilities are collateralized by all of the assets of the golf business.
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(L)
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Interest rate on this is based on 3 month LIBOR with a LIBOR floor of 0.5%.
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(M)
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Issued in April 2006 and July 2007 and secured by the general credit of Newcastle. See Note 6 regarding the securitizations of Subprime Portfolio I and II.
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(N)
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LIBOR +2.25% after April 2016.
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