| Schedule of debt obligations and related hedges |
The following table presents certain information regarding Newcastle’s debt obligations at June 30, 2016:
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Collateral |
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 |
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Amortized
Cost Basis |
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Carrying
Value |
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Weighted Average Life
(Years) |
|
Floating Rate Face Amount |
Repurchase Agreements (C) |
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FNMA/FHLMC Securities |
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June 2016 |
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361,085 |
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361,085 |
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July 2016 |
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0.66% |
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0.66 |
% |
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0.1 |
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— |
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353,585 |
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371,260 |
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373,097 |
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5.6 |
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— |
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361,085 |
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361,085 |
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0.66 |
% |
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0.1 |
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— |
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353,585 |
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371,260 |
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373,097 |
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5.6 |
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— |
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Golf Credit Facilities |
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Golf Term Loan (D) |
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June 2016 |
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102,000 |
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98,080 |
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July 2019 |
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LIBOR+4.70% |
(E) |
7.92 |
% |
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3.0 |
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102,000 |
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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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N/A |
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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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2.20% |
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2.20 |
% |
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27.5 |
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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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Capital Leases (Equipment) |
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May 2014 - June 2016 |
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14,563 |
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14,563 |
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Jan 2022 |
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3.00% to 16.16% |
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6.59 |
% |
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4.4 |
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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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116,763 |
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112,843 |
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7.74 |
% |
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3.2 |
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102,200 |
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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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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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51,221 |
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Apr 2035 |
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LIBOR+2.25% |
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2.84 |
% |
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18.8 |
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51,004 |
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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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51,221 |
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2.84 |
% |
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18.8 |
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51,004 |
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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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Subtotal debt obligations |
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528,852 |
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525,149 |
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2.39 |
% |
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2.6 |
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$ |
153,204 |
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$ |
353,585 |
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$ |
371,260 |
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$ |
373,097 |
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5.6 |
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$ |
— |
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Financing on subprime mortgage loans subject to call option (F) |
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362,931 |
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362,931 |
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Total debt obligations |
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$ |
891,783 |
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$ |
888,080 |
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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 deferred financing costs. |
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(C) |
These repurchase agreements had $0.1 million of accrued interest payable at June 30, 2016. The counterparties on these repurchase agreements are Citi ($247.8 million) and Morgan Stanley ($113.3 million). Newcastle has margin exposures on a total of $361.1 million repurchase agreements related to the financing of FNMA/FHLMC securities. 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. $361.1 million of repurchase agreements were repaid in July 2016 as part of the sale of the FNMA/FHLMC securities.
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(D) |
The golf term loan is collateralized by 22 golf properties. The carrying amount of the golf term loan is reported net of deferred financing costs of $3.9 million as of June 30, 2016.
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(E) |
Interest rate based on 30 day LIBOR plus 4.70% with a LIBOR floor of 1.80%. At the time of closing, Newcastle purchased a co-terminus LIBOR interest rate cap of 1.80%.
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(F) |
See Note 6 regarding the securitizations of Subprime Portfolios I and II. |
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| 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 June 30, 2016 are as follows:
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July 1, 2016 - December 31, 2016 |
$ |
1,901 |
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2017 |
3,900 |
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2018 |
3,894 |
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2019 |
3,746 |
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2020 |
2,432 |
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2021 |
930 |
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Thereafter |
45 |
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Total minimum lease payments |
16,848 |
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Less: imputed interest |
(2,285 |
) |
Present value of net minimum lease payments |
$ |
14,563 |
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