Annual report pursuant to Section 13 and 15(d)

DEBT OBLIGATIONS (Tables)

v3.3.1.900
DEBT OBLIGATIONS (Tables)
12 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Schedule of debt obligations and related hedges
The following table presents certain information regarding Newcastle's debt obligations and related hedges:
 
December 31, 2015
December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collateral
 
 
 
 
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
 
Outstanding Face Amount (C)
 
Amortized Cost Basis (C)
 
Carrying Value (C)
 
Weighted Average Life (Years)
 
Floating Rate Face Amount (C)
 
Outstanding Face Amount
 
Carrying Value
CDO Bonds Payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CDO VI (D)
Apr 2005
 
$
92,933

 
$
92,933

 
Apr 2040
 
1.12%
 
1.12
%
 
4.1
 
$
89,183

 
$
69,838

 
$
25,124

 
$
46,392

 
3.9
 
$
12,477

 
$
92,462

 
$
92,462

CDO VIII
Nov 2006
 

 

 
 
—%
 
%
 
0.0
 

 

 

 

 
0.0
 

 
71,813

 
71,717

CDO IX
May 2007
 

 

 
 
—%
 
%
 
0.0
 

 

 

 

 
0.0
 

 
62,578

 
63,494

 
 
 
92,933

 
92,933

 
 
 
 
 
1.12
%
 
4.1
 
89,183

 
69,838

 
25,124

 
46,392

 
3.9
 
12,477

 
226,853

 
227,673

Other Bonds & Notes Payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NCT 2013-VI IMM-1 (E)
Nov 2013
 
4,984

 
4,672

 
Apr 2040
 
LIBOR+0.25%
 
21.78
%
 
0.4
 
4,984

 
N/A

 
N/A

 
N/A

 
N/A
 
N/A

 
31,060

 
27,069

Mezzanine Note Payable
Oct 2015
 
11,660

 
11,490

 
Oct 2016
 
LIBOR+3.00%
 
6.38
%
 
0.8
 
11,660

 
19,433

 
19,433

 
19,433

 
0.5
 
19,433

 

 

 
 
 
16,644

 
16,162

 
 
 
 
 
10.83
%
 
0.7
 
16,644

 
19,433

 
19,433

 
19,433

 
0.5
 
19,433

 
31,060

 
27,069

Repurchase Agreements (F)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CDO Securities
Dec 2013
 

 

 
 
—%
 
%
 
0.0
 

 
N/A

 
N/A

 
N/A

 
N/A
 
N/A

 
55,894

 
55,894

FNMA/FHLMC securities
Dec 2015
 
348,625

 
348,625

 
Jan 2016
 
0.71%
 
0.71
%
 
0.1
 

 
350,280

 
365,265

 
365,265

 
7.7
 

 
385,282

 
385,282

Golf Loans (G)
Aug 2015
 
70,000

 
69,833

 
Feb 2016
 
LIBOR + 3.50%
 
5.13
%
 
0.4
 
70,000

 
N/A

 
N/A

 
N/A

 
N/A
 

 

 

 
 
 
418,625

 
418,458

 
 
 
 
 
1.45
%
 
0.2
 
70,000

 
350,280

 
365,265

 
365,265

 
7.7
 

 
441,176

 
441,176

 
December 31, 2015
December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collateral
 
 
 
 
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
 
Outstanding Face Amount (C)
 
Amortized Cost Basis (C)
 
Carrying Value (C)
 
Weighted Average Life (Years)
 
Floating Rate Face Amount (C)
 
Outstanding Face Amount
 
Carrying Value
Golf Credit Facilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Lien Loan (G)
Dec 2013
 

 

 

 


%
 
0.0
 

 
N/A

 
N/A

 
N/A

 
N/A
 
N/A

 
49,923

 
49,800

Second Lien Loan (G)
Dec 2013
 

 

 
—%
 
—%
 
%
 
0.0
 

 
N/A

 
N/A

 
N/A

 
N/A
 
N/A

 
105,575

 
105,315

Vineyard II
Dec 1993
 
200

 
200

 
Dec 2043

 
2.11%
 
2.11
%
 
28.0
 
200

 
N/A

 
N/A

 
N/A

 
N/A
 
N/A

 
200

 
200

Capital Leases (Equipment)
May 2014 - Dec 2015
 
11,058

 
11,058

 
Jun 2021
 
3.83% to 11.54%
 
6.46
%
 
4.5
 

 
N/A

 
N/A

 
N/A

 
N/A
 
N/A

 
6,159

 
6,159

 
 
 
11,258

 
11,258

 
 
 
 
 
6.38
%
 
4.9
 
200

 
N/A

 
N/A

 
N/A

 
N/A
 
N/A

 
161,857

 
161,474

Corporate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Junior subordinated notes payable
Mar 2006
 
51,004

 
51,225

 
Apr 2035
 
7.57%
(H)
7.36
%
 
19.3
 

 
N/A

 
N/A

 
N/A

 
N/A
 
N/A

 
51,004

 
51,231

 
 
 
51,004

 
51,225

 
 
 
 
 
7.36
%
 
19.3
 

 
N/A

 
N/A

 
N/A

 
N/A
 
N/A

 
51,004

 
51,231

Subtotal debt obligation
 
 
590,464

 
590,036

 
 
 
 
 
2.26
%
 
2.6
 
$
176,027

 
$
439,551

 
$
409,822

 
$
431,090

 
6.7
 
$
31,910

 
911,950

 
908,623

Financing on subprime mortgage loans subject to call option
(I)
 
380,806

 
380,806

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
406,217

 
406,217

Total debt obligation
 
 
$
971,270

 
$
970,842

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
1,318,167

 
$
1,314,840

See notes on next page.
(A)
Weighted average, including floating and fixed rate classes.
(B)
Including the effect of applicable hedges and deferred financing cost.
(C)
Excluding restricted cash held in CDOs to be used for principal and interest payments of CDO debt.
(D)
This CDO was not in compliance with its applicable over collateralization tests as of December 31, 2015. 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), because net interest is being used to repay debt, and expects this CDO to remain out of compliance for the forseeable future.
(E)
Represents financings of previously repurchased Newcastle CDO bonds for which the collateral is eliminated in consolidation.
(F)
These repurchase agreements had $0.5 million accrued interest payable at December 31, 2015. The counterparties on these repurchase agreements are Nomura ($48.6 million), Morgan Stanley ($53.7 million), Citi ($246.3 million) and Credit Suisse ($70.0 million). Newcastle has margin exposure on $418.6 million of repurchase agreements related to the financing of FNMA/FHLMC securities and Golf loans. To the extent that the value of the collateral underlying these repurchase agreements declines, Newcastle may be required to post margin, which could significantly impact its liquidity. $348.6 million of repurchase agreements were repaid in 2016 as part of the sale of the FNMA/FHLMC securities.
(G)
The golf repurchase agreement is collateralized by assets of the Golf business. The carrying amount of the golf repurchase agreement is reported net of deferred financing costs of $0.2 million as of December 31, 2015. The First Lien Loan and Second Lien Loan are reported net of deferred financing costs of $0.4 million as of December 31, 2014.
(H)
LIBOR +2.25% after April 2016.
(I)
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.
Schedule of future minimum lease payments under capital leases
The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of December 31, 2015 are as follows:
2016
$
2,848

2017
2,844

2018
2,837

2019
2,720

2020
1,425

Thereafter
128

Total minimum lease payments
12,802

Less: imputed interest
1,744

Present value of net minimum lease payments
$
11,058

Schedule of contractual maturities of debt obligations
Newcastle’s debt obligations (gross of $0.4 million of discounts at December 31, 2015) have contractual maturities as follows:
 
Nonrecourse
 
Recourse
 
Total
2016
$
13,858

 
$
418,625

 
$
432,483

2017
2,339

 

 
2,339

2018
2,488

 

 
2,488

2019
2,534

 

 
2,534

2020
1,372

 

 
1,372

Thereafter
479,050

 
51,004

 
530,054

Total
$
501,641

 
$
469,629

 
$
971,270