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Loans Receivable | 9 Months Ended
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Sep. 30, 2015
Loans Receivable. |
Loans Receivable | NOTE 7. Loans Receivable The following table summarizes the Company’s loans receivable (in thousands):
|  | September 30, 2015 |  | December 31, 2014 |
|  | Real Estate |  | Other |  |  |  |  | Real Estate |  | Other |  |  |  |
|  | Secured |  | Secured |  | Total |  | Secured |  | Secured |  | Total |
Mezzanine(1) (2) |  | $ | — |  | $ | 696,877 |  | $ | 696,877 |  | $ | — |  | $ | 799,064 |  | $ | 799,064 |
Other(2) (3) |  |  | 90,650 |  |  | — |  |  | 90,650 |  |  | 135,363 |  |  | — |  |  | 135,363 |
Unamortized discounts, fees and costs(1) |  |  | — |  |  | (8,524) |  |  | (8,524) |  |  | — |  |  | (14,056) |  |  | (14,056) |
Allowance for loan losses |  |  | — |  |  | (13,410) |  |  | (13,410) |  |  | — |  |  | (13,410) |  |  | (13,410) |
|  | $ | 90,650 |  | $ | 674,943 |  | $ | 765,593 |  | $ | 135,363 |  | $ | 771,598 |  | $ | 906,961 |
| (1) |  | At September 30, 2015, included £269 million ($408 million) outstanding and £4 million ($6 million) of associated unamortized discounts, fees and costs both related to the HC-One Facility.
| (2) |  | At September 30, 2015, the Company had £40 million ($60 million) remaining under its commitments to fund development projects and capital expenditures under the HC-One Facility.
| (3) |  | At September 30, 2015, the Company had $2 million remaining of commitments to fund development projects and capital expenditures under the senior housing development loan program.
Loans Receivable Internal Ratings The following table summarizes the Company’s internal ratings for loans receivable at September 30, 2015 (dollars in thousands):
|  | Carrying |  | Percentage of |  | Internal Ratings |
Investment Type |  | Amount |  | Loan Portfolio |  | Performing Loans |  | Watch List Loans |  | Workout Loans |
Real estate secured |  | $ | 90,650 |  | 12 |  | $ | 90,650 |  | $ | — |  | $ | — |
Other secured |  |  | 674,943 |  | 88 |  |  | 657,956 |  |  | — |  |  | 16,987 |
|  | $ | 765,593 |  | 100 |  | $ | 748,606 |  | $ | — |  | $ | 16,987 |
Other Secured Loans HC-One Facility. In November 2014, the Company was the lead investor in the financing of Formation Capital and Safanad’s acquisition of NHP, a company that, at closing, owned 273 nursing and residential care homes representing over 12,500 beds in the U.K. principally operated by HC-One. The Company provided a loan facility (the “HC-One Facility”), secured by substantially all of NHP’s assets, totaling £395 million, with £363 million ($574 million) drawn at closing. The HC-One Facility has a five-year term and was initially funded by a £355 million draw on the Company’s revolving line of credit facility that is discussed in Note 11. In February 2015, the Company increased the HC-One Facility by £108 million ($164 million) to £502 million ($795 million), in conjunction with HC-One’s acquisition of Meridian Healthcare. In April 2015, the Company converted £174 million of the HC-One Facility into a sale-leaseback transaction for 36 nursing and residential care homes located throughout the U.K. (see Note 4). During the three and nine months ended September 30, 2015, the Company received paydow ns of £29 million ($45 million). In S eptember 2015, the Company amended and increased its commitment under the HC-One Facility by £11 million primarily for the funding of capital expenditures and a development project. As part of the amendments, the Company shortened the non-call period by 17 months and provided consent for (i) the pay down of £34 million from disposition proceeds without a prepayment premium and (ii) the spinoff of 36 properties into a separate joint venture. In return, the Company retained security over the spinoff properties for a period of two years. Brookdale Receivable. In conjunction with the Brookdale Transaction, on August 29, 2014, the Company provided $68 million in financing to Brookdale in the form of a 7% interest-only loan secured by Brookdale’s 20% equity interest in RIDEA II. On November 3, 2014, the Company received $68 million from the early repayment of this loan. See additional information regarding the Brookdale Transaction in Note 3. Tandem Health Care Loan. On July 31, 2012, the Company closed a mezzanine loan facility to lend up to $205 million to Tandem Health Care (“Tandem”), as part of the recapitalization of a post-acute/skilled nursing portfolio. The Company funded $100 million (the “First Tranche”) at closing and funded an additional $102 million (the “Second Tranche”) in June 2013. In May 2015, the Company increased and extended the mezzanine loan facility with Tandem to (i) fund $50 million (the “Third Tranche”) and $5 million (the “Fourth Tranche”), which proceeds were used to repay a portion of Tandem’s existing senior and mortgage debt, respectively; (ii) extend its maturity to October 2018; and (iii) extend the prepayment penalty period to January 2017. The loans bear interest at fixed rates of 12%, 14%, 6% and 6% per annum for the First, Second, Third and Fourth Tranches, respectively. At September 30, 2015, the facility had an outstanding balance of $256 million at an 11.5% blended interest rate and was subordinate to $382 million of senior mortgage debt. Delphis Operations, L.P. Loan. The Company holds a senior secured term loan made to Delphis Operations, L.P. (“Delphis” or the “Borrower”) that is collateralized by assets of the Borrower. The Borrower’s collateral is comprised primarily of partnership interest s in an operating surgical facility that leases a property owned by the Company. This loan is on cost recovery status and has an internal rating of “workout”. The carrying value of the loan, net of an allowance for loan losses, was $17 million at both September 30, 2015 and December 31, 2014. During the three and nine months ended September 30, 2014, the Company received cash payments from the Borrower of $0.6 million. At both September 30, 2015 and December 31, 2014, the allowance related to the Company’s senior secured term loan to Delphis was $13 million with no additional allowances recognized during the nine months ended September 30, 2015 or the year ended December 31, 2014. Subsequent Event. In October 2015, the Company received $23 million in proceeds from the sale of Delphis’ collateral and recognized an impairment recovery of $6 million for the amount received in excess of the loan’s carrying value.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e5066-111524 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e5162-111524 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e5074-111524 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 + Details
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