| Schedule of debt obligations and related hedges |
The following table presents certain information regarding Newcastle’s debt obligations at September 30, 2015:
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September 30, 2015 |
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Collateral |
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) |
CDO Bonds Payable |
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CDO VI (D) |
Apr 2005 |
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$ |
92,812 |
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$ |
92,812 |
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Apr 2040 |
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0.89% |
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0.89 |
% |
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4.1 |
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$ |
89,123 |
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$ |
72,663 |
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$ |
26,960 |
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$ |
49,398 |
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3.4 |
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$ |
12,688 |
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92,812 |
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92,812 |
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0.89 |
% |
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4.1 |
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89,123 |
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72,663 |
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26,960 |
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49,398 |
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3.4 |
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12,688 |
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Other Bonds and Notes Payable |
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NCT 2013-VI IMM-1 (E) |
Nov 2013 |
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8,177 |
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7,494 |
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Apr 2040 |
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LIBOR+0.25% |
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17.50 |
% |
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0.4 |
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8,177 |
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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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8,177 |
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7,494 |
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17.50 |
% |
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0.4 |
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8,177 |
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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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Repurchase Agreements (F) |
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FNMA/FHLMC Securities |
Sep 2015 |
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345,859 |
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345,859 |
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Oct 2015 |
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0.49% |
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0.49 |
% |
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0.1 |
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— |
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348,920 |
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363,981 |
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363,981 |
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7.7 |
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— |
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Golf Loans (G) |
Aug 2015 |
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70,000 |
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69,583 |
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Feb 2016 |
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LIBOR+3.50% |
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6.15 |
% |
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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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N/A |
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415,859 |
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415,442 |
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1.43 |
% |
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0.2 |
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70,000 |
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348,920 |
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363,981 |
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363,981 |
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7.7 |
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— |
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Golf Credit Facilities |
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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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28.2 |
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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) |
May 2014 - Sep 2015 |
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11,803 |
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11,803 |
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May 2021 |
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3.22% to 11.54% |
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6.57 |
% |
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4.8 |
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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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12,003 |
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12,003 |
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6.51 |
% |
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5.2 |
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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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Corporate |
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Junior subordinated notes payable |
Mar 2006 |
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51,004 |
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51,226 |
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Apr 2035 |
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7.57% |
(H) |
7.36 |
% |
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19.6 |
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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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51,226 |
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7.36 |
% |
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19.6 |
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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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Subtotal debt obligations |
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579,855 |
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578,977 |
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2.18 |
% |
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2.6 |
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$ |
167,500 |
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$ |
421,583 |
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$ |
390,941 |
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$ |
413,379 |
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7.0 |
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$ |
12,688 |
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Financing on subprime mortgage loans subject to call option (I) |
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392,342 |
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392,342 |
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Total debt obligations |
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$ |
972,197 |
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$ |
971,319 |
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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. For fixed rate mortgage notes payable, the weighted average funding cost is calculated based on the average rate during the nine months ended September 30, 2015.
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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 September 30, 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), 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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(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 $0.3 million of accrued interest payable at September 30, 2015. The counterparties on these repurchase agreements are Nomura ($196.9 million), Morgan Stanley ($98.8 million), Citi ($50.2 million) and Credit Suisse ($70.0 million). Newcastle has margin exposures on a total of $415.9 million 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. $345.9 million of repurchase agreements were repaid in October 2015 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 $0.4 million as of September 30, 2015.
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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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| 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 September 30, 2015 are as follows:
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October 1, 2015 - December 31, 2015 |
$ |
672 |
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2016 |
2,690 |
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2017 |
2,690 |
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2018 |
2,683 |
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2019 |
2,627 |
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2020 and thereafter |
2,669 |
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Total minimum lease payments |
14,031 |
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Less: imputed interest |
(2,228 |
) |
Present value of net minimum lease payments |
$ |
11,803 |
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Newcastle’s non-CDO financings and golf credit facilities contain various customary loan covenants. Newcastle was in compliance with all of these covenants as of September 30, 2015.
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