| Schedule of debt obligations and related hedges |
The following table presents certain information regarding Newcastle’s debt obligations at March 31, 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) |
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Floating Rate Face Amount |
Other Bonds and Notes Payable |
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Mezzanine Note Payable |
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Oct 2015 |
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$ |
11,660 |
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$ |
11,575 |
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Oct 2016 |
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LIBOR+3.00% |
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6.38 |
% |
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0.6 |
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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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0.3 |
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$ |
19,433 |
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11,660 |
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11,575 |
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6.38 |
% |
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0.6 |
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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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0.3 |
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19,433 |
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Repurchase Agreements (C) |
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FNMA/FHLMC Securities |
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Mar 2016 |
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352,049 |
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352,049 |
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Apr 2016 |
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0.68% |
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0.68 |
% |
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0.1 |
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— |
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347,478 |
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358,403 |
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364,320 |
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5.6 |
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— |
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Golf Loans (D) |
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Aug 2015 |
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68,500 |
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68,325 |
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May 2016 |
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LIBOR+4.00% |
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5.95 |
% |
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0.2 |
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68,500 |
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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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420,549 |
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420,374 |
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1.54 |
% |
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0.1 |
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68,500 |
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347,478 |
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358,403 |
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364,320 |
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5.6 |
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— |
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Golf Credit Facilities |
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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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2.11% |
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2.11 |
% |
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27.7 |
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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 - Mar 2016 |
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11,124 |
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11,124 |
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Sep 2021 |
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3.25% to 16.16% |
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6.5 |
% |
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4.3 |
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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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11,324 |
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11,324 |
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6.42 |
% |
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4.7 |
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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 |
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Mar 2006 |
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51,004 |
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51,223 |
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Apr 2035 |
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7.57% |
(E) |
7.53 |
% |
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19.1 |
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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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51,223 |
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7.53 |
% |
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19.1 |
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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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494,537 |
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494,496 |
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2.38 |
% |
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2.2 |
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$ |
80,360 |
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$ |
366,911 |
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$ |
377,836 |
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$ |
383,753 |
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5.3 |
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$ |
19,433 |
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Financing on subprime mortgage loans subject to call option (F) |
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372,874 |
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372,874 |
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Total debt obligations |
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$ |
867,411 |
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$ |
867,370 |
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See notes on next page.
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) |
These repurchase agreements had $0.6 million of accrued interest payable at March 31, 2016. The counterparties on these repurchase agreements are Citi ($352.0 million) and Credit Suisse ($68.5 million). Newcastle has margin exposures on a total of $420.5 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. $352.0 million of repurchase agreements were repaid in April 2016 as part of the sale of the FNMA/FHLMC securities.
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(D) |
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 March 31, 2016.
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(E) |
LIBOR +2.25% after April 2016.
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(F) |
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 March 31, 2016 are as follows:
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April 1, 2016 - December 31, 2016 |
$ |
3,010 |
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2017 |
3,012 |
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2018 |
2,997 |
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2019 |
2,598 |
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2020 |
1,208 |
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2021 |
17 |
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Thereafter |
— |
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Total minimum lease payments |
12,842 |
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Less: imputed interest |
(1,718 |
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Present value of net minimum lease payments |
$ |
11,124 |
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