| Schedule of debt obligations and related hedges |
The following table presents certain information regarding Newcastle's debt obligations and related hedges:
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December 31, 2015 |
December 31, 2014 |
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Collateral |
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Debt Obligation/Collateral |
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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Outstanding Face Amount |
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Carrying Value |
CDO Bonds Payable |
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CDO VI (D) |
Apr 2005 |
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$ |
92,933 |
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$ |
92,933 |
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Apr 2040 |
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1.12% |
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1.12 |
% |
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4.1 |
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$ |
89,183 |
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$ |
69,838 |
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$ |
25,124 |
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$ |
46,392 |
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3.9 |
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$ |
12,477 |
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$ |
92,462 |
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$ |
92,462 |
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CDO VIII |
Nov 2006 |
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— |
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— |
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— |
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—% |
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— |
% |
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0.0 |
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— |
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— |
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— |
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— |
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0.0 |
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— |
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71,813 |
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71,717 |
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CDO IX |
May 2007 |
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— |
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— |
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— |
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—% |
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— |
% |
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0.0 |
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— |
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— |
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— |
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— |
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0.0 |
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— |
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62,578 |
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63,494 |
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92,933 |
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92,933 |
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1.12 |
% |
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4.1 |
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89,183 |
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69,838 |
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25,124 |
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46,392 |
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3.9 |
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12,477 |
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226,853 |
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227,673 |
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Other Bonds & Notes Payable |
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NCT 2013-VI IMM-1 (E) |
Nov 2013 |
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4,984 |
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4,672 |
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Apr 2040 |
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LIBOR+0.25% |
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21.78 |
% |
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0.4 |
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4,984 |
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N/A |
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N/A |
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N/A |
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N/A |
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N/A |
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31,060 |
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27,069 |
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Mezzanine Note Payable |
Oct 2015 |
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11,660 |
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11,490 |
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Oct 2016 |
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LIBOR+3.00% |
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6.38 |
% |
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0.8 |
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11,660 |
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19,433 |
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19,433 |
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19,433 |
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0.5 |
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19,433 |
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— |
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— |
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16,644 |
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16,162 |
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10.83 |
% |
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0.7 |
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16,644 |
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19,433 |
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19,433 |
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19,433 |
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0.5 |
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19,433 |
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31,060 |
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27,069 |
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Repurchase Agreements (F) |
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CDO Securities |
Dec 2013 |
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— |
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— |
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— |
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—% |
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— |
% |
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0.0 |
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— |
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N/A |
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N/A |
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N/A |
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N/A |
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N/A |
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55,894 |
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55,894 |
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FNMA/FHLMC securities |
Dec 2015 |
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348,625 |
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348,625 |
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Jan 2016 |
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0.71% |
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0.71 |
% |
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0.1 |
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— |
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350,280 |
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365,265 |
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365,265 |
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7.7 |
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— |
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385,282 |
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385,282 |
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Golf Loans (G) |
Aug 2015 |
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70,000 |
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69,833 |
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Feb 2016 |
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LIBOR + 3.50% |
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5.13 |
% |
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0.4 |
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70,000 |
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N/A |
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N/A |
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N/A |
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N/A |
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— |
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— |
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— |
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418,625 |
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418,458 |
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1.45 |
% |
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0.2 |
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70,000 |
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350,280 |
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365,265 |
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365,265 |
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7.7 |
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— |
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441,176 |
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441,176 |
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December 31, 2015 |
December 31, 2014 |
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Collateral |
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Debt Obligation/Collateral |
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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Outstanding Face Amount |
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Carrying Value |
Golf Credit Facilities |
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First Lien Loan (G) |
Dec 2013 |
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— |
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— |
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— |
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— |
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— |
% |
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0.0 |
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— |
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N/A |
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N/A |
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N/A |
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N/A |
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N/A |
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49,923 |
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49,800 |
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Second Lien Loan (G) |
Dec 2013 |
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— |
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— |
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—% |
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—% |
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— |
% |
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0.0 |
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— |
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N/A |
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N/A |
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N/A |
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N/A |
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N/A |
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105,575 |
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105,315 |
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Vineyard II |
Dec 1993 |
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200 |
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200 |
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Dec 2043 |
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2.11% |
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2.11 |
% |
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28.0 |
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200 |
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N/A |
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N/A |
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N/A |
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N/A |
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N/A |
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200 |
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200 |
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Capital Leases (Equipment) |
May 2014 - Dec 2015 |
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11,058 |
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11,058 |
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Jun 2021 |
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3.83% to 11.54% |
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6.46 |
% |
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4.5 |
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— |
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N/A |
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N/A |
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N/A |
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N/A |
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N/A |
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6,159 |
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6,159 |
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11,258 |
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11,258 |
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6.38 |
% |
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4.9 |
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200 |
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N/A |
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N/A |
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N/A |
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N/A |
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N/A |
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161,857 |
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161,474 |
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Corporate |
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Junior subordinated notes payable |
Mar 2006 |
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51,004 |
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51,225 |
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Apr 2035 |
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7.57% |
(H) |
7.36 |
% |
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19.3 |
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— |
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N/A |
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N/A |
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N/A |
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N/A |
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N/A |
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51,004 |
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51,231 |
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51,004 |
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51,225 |
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7.36 |
% |
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19.3 |
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— |
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N/A |
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N/A |
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N/A |
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N/A |
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N/A |
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51,004 |
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51,231 |
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Subtotal debt obligation |
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590,464 |
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590,036 |
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2.26 |
% |
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2.6 |
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$ |
176,027 |
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$ |
439,551 |
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$ |
409,822 |
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$ |
431,090 |
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6.7 |
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$ |
31,910 |
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911,950 |
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908,623 |
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Financing on subprime mortgage loans subject to call option |
(I) |
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380,806 |
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380,806 |
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406,217 |
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406,217 |
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Total debt obligation |
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$ |
971,270 |
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$ |
970,842 |
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$ |
1,318,167 |
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$ |
1,314,840 |
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See notes on next page.
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(A) |
Weighted average, including floating and fixed rate classes. |
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(B) |
Including the effect of applicable hedges and deferred financing cost. |
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(C) |
Excluding restricted cash held in CDOs to be used for principal and interest payments of CDO debt. |
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(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.
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(E) |
Represents financings of previously repurchased Newcastle CDO bonds for which the collateral is eliminated in consolidation. |
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(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.
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(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.
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(H) |
LIBOR +2.25% after April 2016. |
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(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. |
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