Quarterly report pursuant to Section 13 or 15(d)

EQUITY AND EARNINGS PER SHARE (Tables)

v2.4.0.8
EQUITY AND EARNINGS PER SHARE (Tables)
9 Months Ended
Sep. 30, 2014
Stockholders' Equity Note [Abstract]  
Schedule of shares of common stock issued in connection with public offerings
The following table presents shares of common stock issued by Newcastle in connection with public offerings during 2014:
 
 
 
 
 
 
 
 
 
Aggregate Shares Purchased
 
 
 
 
Number of
 
 
 
Net
 
by Principals of Fortress
 
Call Options Granted to Manager (A)
 
 
Shares
 
Price per Share
 
Proceeds
 
Number of
 
 
 
Number of
 
 
 
Grant Date Value
 
Date
 Issued
 
To Public
 
To Underwriters
 
(millions)
 
Shares
 
Price
 
Shares
 
Strike Price
 
(millions)
 
August 2014
7,654,166
 
 N/A
 
$
25.92

 
$
197.9

 
83,333
 
$
26.34

 
765,416
 
$
26.34

 
$
1.7

(B)
(A)
In connection with these offerings, Newcastle granted options to the Manager for the purpose of compensating the Manager for its successful efforts in raising capital for Newcastle.
(B)
The assumptions used in valuing the options were: a 2.7% risk-free rate, 8.6% dividend yield, 23.4% volatility and a 10 year term.
Schedule of outstanding options by strike price
Newcastle’s outstanding options at September 30, 2014 consisted of the following:
 
Number of Options
 
Strike Price (A)
 
Maturity Date
 
27,080

 
77.04

 
11/22/2014
 
54,999

 
72.18

 
1/12/2015
 
333

 
75.72

 
8/1/2015
 
28,331

 
71.70

 
11/1/2016
 
40,330

 
76.80

 
1/23/2017
 
76,000

 
67.14

 
4/11/2017
 
182,527

 
9.06

 
3/29/2021
 
283,305

 
5.16

 
9/27/2021
 
311,194

 
9.66

 
4/3/2022
 
377,500

 
11.04

 
5/21/2022
 
416,524

 
10.98

 
7/31/2022
 
958,331

 
18.18

 
1/11/2023
 
383,331

 
21.24

 
2/15/2023
 
670,829

 
22.56

 
6/17/2023
 
965,847

 
24.24

 
11/22/2023
 
765,416

 
26.34

 
8/18/2024
Total W/A
5,541,877

 
$
20.83

 
 
   
(A)
The strike prices are subject to adjustment in connection with return of capital dividends. In the first quarter of 2014 strike prices were adjusted by $1.92 (adjusted to reflect the reverse stock splits) reflecting the portion of Newcastle’s 2013 dividends which was deemed return of capital.
 
Schedule of outstanding options summary
As of September 30, 2014, Newcastle’s outstanding options were summarized as follows:
 
Issued Prior to 2011
 
Issued in 2011 and thereafter
 
Total
Held by the Manager
179,186

 
4,833,961

 
5,013,147

Issued to the Manager and subsequently transferred to certain of the Manager's employees
47,554

 
480,843

 
528,397

Issued to the independent directors
333

 

 
333

Total
227,073

 
5,314,804

 
5,541,877

Weighted average strike price
$
71.84

 
$
18.65

 
$
20.83