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Bonds and Notes Payable | 9 Months Ended
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Sep. 30, 2019
Debt Disclosure [Abstract] |
Bonds and Notes Payable | Bonds and Notes Payable The following tables summarize the Company’s outstanding debt obligations by type of instrument:
| As of September 30, 2019 |  |  |  |  |
| Carrying amount |  | Interest rate range |  | Final maturity |
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: |  |  |  |  |  |
Bonds and notes based on indices | $ | 18,961,410 |  |  | 2.20% - 3.81% |  |  | 11/25/24 - 9/26/67 |
Bonds and notes based on auction | 773,726 |  |  | 3.02% - 3.84% |  |  | 3/22/32 - 11/26/46 |
Total FFELP variable-rate bonds and notes | 19,735,136 |  |  |  |  |  |
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitization | 374,500 |  |  | 2.53% / 3.45% |  |  | 10/25/67 |
FFELP warehouse facilities | 739,448 |  |  | 2.22% / 2.26% |  |  | 11/20/20 / 5/31/22 |
Consumer loan warehouse facility | 144,022 |  |  | 2.23% |  |  | 4/23/22 |
Variable-rate bonds and notes issued in private education loan asset- backed securitizations | 82,338 |  |  | 3.40% / 3.77% |  |  | 12/26/40 / 6/25/49 |
Fixed-rate bonds and notes issued in private education loan asset-backed securitization | 53,368 |  |  | 3.60% / 5.35% |  |  | 12/26/40 / 12/28/43 |
Unsecured line of credit | — |  |  | — |  |  | 6/22/23 |
Unsecured debt - Junior Subordinated Hybrid Securities | 20,381 |  |  | 5.46% |  |  | 9/15/61 |
Other borrowings | 45,465 |  |  | 2.77% - 3.85% |  |  | 10/7/19 - 5/30/22 |
| 21,194,658 |  |  |  |  |  |
Discount on bonds and notes payable and debt issuance costs | (284,468) |  |  |  |  |  |
Total | $ | 20,910,190 |  |  |  |  |  |
| As of December 31, 2018 |  |  |  |
| Carrying amount |  | Interest rate range |  | Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: |  |  |  |  |
Bonds and notes based on indices | $ | 20,192,123 |  |  | 2.59% - 4.52% |  |  | 11/25/24 - 2/25/67
Bonds and notes based on auction | 793,476 |  |  | 2.84% - 3.55% |  |  | 3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes | 20,985,599 |  |  |  |  |
FFELP warehouse facilities | 986,886 |  |  | 2.65% / 2.71% |  |  | 5/20/20 / 5/31/21
Variable-rate bonds and notes issued in private education loan asset-backed securitization | 50,720 |  |  | 4.26% |  |  | 12/26/40
Fixed-rate bonds and notes issued in private education loan asset-backed securitization | 63,171 |  |  | 3.60% / 5.35% |  |  | 12/26/40 / 12/28/43
Unsecured line of credit | 310,000 |  |  | 3.92% - 4.01% |  |  | 6/22/23
Unsecured debt - Junior Subordinated Hybrid Securities | 20,381 |  |  | 6.17% |  |  | 9/15/61
Other borrowings | 120,342 |  |  | 3.05% - 5.22% |  |  | 1/3/19 - 12/15/45
| 22,537,099 |  |  |  |  |
Discount on bonds and notes payable and debt issuance costs | (318,359) |  |  |  |  |
Total | $ | 22,218,740 |  |  |  |  |
FFELP Warehouse Facilities The Company funds the majority of its Federal Family Education Loan Program (the "FFEL Program" or "FFELP") loan acquisitions using its FFELP warehouse facilities. Student loan warehousing allows the Company to buy and manage student loans prior to transferring them into more permanent financing arrangements. As of September 30, 2019, the Company had two FFELP warehouse facilities as summarized below.
|  | NFSLW-I (a) |  | NHELP-II (b) |  | Total
Maximum financing amount |  | $ | 500,000 |  |  | 500,000 |  |  | 1,000,000 |
Amount outstanding |  | 387,510 |  |  | 351,938 |  |  | 739,448 |
Amount available |  | $ | 112,490 |  |  | 148,062 |  |  | 260,552 |
Expiration of liquidity provisions |  | November 20, 2019 |  | May 31, 2020 |  |
Final maturity date |  | November 20, 2020 |  | May 31, 2022 |  |
Advanced as equity support |  | $ | 22,238 |  |  | 25,853 |  |  | 48,091 |
(a) On March 8, 2019, the Company decreased the maximum financing amount for this warehouse facility to $500 million. On May 16, 2019, the Company extended the expiration of liquidity provisions to November 20, 2019, and extended the maturity date to November 20, 2020. (b) On May 30, 2019, the Company extended the expiration of liquidity provisions to May 31, 2020, and extended the maturity date to May 31, 2022. Asset-Backed Securitizations The following table summarizes the asset-backed securitization transactions completed during the first nine months of 2019.
|  | 2019-1 |  |  |  |  |  | 2019-2 |  | Private education loan 2019-A |  | 2019-3 |  | 2019-4 |  | 2019-5 |  |  |  |  |  |  |  | Total
|  | Class A-1 Notes |  | Class A-2 Notes |  | 2019-1 total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Date securities issued |  | 2/27/19 |  | 2/27/19 |  | 2/27/19 |  | 4/30/19 |  | 6/25/19 |  | 7/24/19 |  | 8/22/19 |  | 9/25/19 |  |  |  |  |  |  |  |
Total original principal amount |  | $ | 35,700 |  |  | 448,000 |  |  | 496,800 |  |  | 416,100 |  |  | 47,159 |  |  | 498,300 |  |  | 418,600 |  |  | 374,500 |  |  |  |  |  |  |  |  | 2,251,459 |
Class A senior notes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total principal amount |  | $ | 35,700 |  |  | 448,000 |  |  | 483,700 |  |  | 405,000 |  |  | 47,159 |  |  | 485,800 |  |  | 408,000 |  |  | 364,500 |  |  |  |  |  |  |  |  | 2,194,159 |
Bond discount |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (114) |  |  |  |  |  |  |  |  | (114) |
Issue price |  | $ | 35,700 |  |  | 448,000 |  |  | 483,700 |  |  | 405,000 |  |  | 47,159 |  |  | 485,800 |  |  | 408,000 |  |  | 364,386 |  |  |  |  |  |  |  |  | 2,194,045 |
Cost of funds |  | 1-month LIBOR plus 0.30% |  | 1-month LIBOR plus 0.75% |  |  |  | 1-month LIBOR plus 0.90% |  | Prime rate less 1.60% |  | 1-month LIBOR plus 0.80% |  | 1-month LIBOR plus 0.87% |  | 2.53% |  |  |  |  |  |  |  |  |
Final maturity date |  | 4/25/67 |  | 4/25/67 |  |  |  | 6/27/67 |  | 6/25/49 |  | 8/25/67 |  | 9/26/67 |  | 10/25/67 |  |  |  |  |  |  |  |
Class B subordinated notes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total principal amount |  |  |  |  |  | 13,100 |  |  | 11,100 |  |  |  |  | 12,500 |  |  | 10,600 |  |  | 10,000 |  |  |  |  |  |  |  |  | 57,300 |
Bond discount |  |  |  |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | (4) |  |  |  |  |  |  |  |  | (4) |
Issue price |  |  |  |  |  | 13,100 |  |  | 11,100 |  |  |  |  | 12,500 |  |  | 10,600 |  |  | 9,996 |  |  |  |  |  |  |  |  | 57,296 |
Cost of funds |  |  |  |  |  | 1-month LIBOR plus 1.40% |  | 1-month LIBOR plus 1.50% |  |  |  | 1-month LIBOR plus 1.55% |  | 1-month LIBOR plus 1.65% |  | 3.45% |  |  |  |  |  |  |  |  |
Final maturity date |  |  |  |  |  | 4/25/67 |  | 6/27/67 |  |  |  | 8/25/67 |  | 9/26/67 |  | 10/25/67 |  |  |  |  |  |  |  |
On June 7, 2019, the Company extinguished all $93.0 million of the notes included in one of its FFELP asset-backed securitizations prior to the notes' contractual maturity. The Company paid a $1.4 million premium to extinguish the notes and wrote off $0.4 million of debt issuance costs. In total, the Company recognized a $1.8 million expense to extinguish the notes, which is included in other expenses on the consolidated statements of income. During the third quarter of 2019, the Company extinguished an additional $675.6 million of notes payable included in certain FFELP asset-backed securitizations prior to the notes' contractual maturities. To extinguish the notes, the Company paid a premium of $12.6 million and wrote off $1.4 million of debt issuance costs. In total, the Company recognized $14.0 million in expenses in the third quarter of 2019 to extinguish these notes, which is included in other expenses on the consolidated statements of income. Consumer Loan Warehouse Facility On January 11, 2019, the Company obtained a consumer loan warehouse facility with an aggregate maximum financing amount available of $100.0 million, an advance rate of 70 or 75 percent depending on the type of collateral and subject to certain concentration limits, and a maturity date of January 10, 2022. On April 25, 2019, the Company amended the agreement for this warehouse facility to increase the aggregate maximum financing amount available to $200.0 million, extend the expiration of liquidity provisions to April 23, 2021, and extend the final maturity date to April 23, 2022. As of September 30, 2019, $144.0 million was outstanding under this warehouse facility and $56.0 million was available for future funding. Additionally, as of September 30, 2019, the Company had $50.2 million advanced as equity support under this facility. Unsecured Line of Credit The Company has a $382.5 million unsecured line of credit that has a maturity date of June 22, 2023. As of September 30, 2019, no amount was outstanding under the line of credit. The line of credit provides that the Company may increase the aggregate financing commitments, through the existing lenders and/or through new lenders, up to a total of $400.0 million, subject to certain conditions. Other Borrowings During 2017, the Company entered into a repurchase agreement, the proceeds of which are collateralized by FFELP asset-backed security investments. Included in "other borrowings" as of September 30, 2019 and December 31, 2018, was $40.5 million and $41.4 million, respectively, subject to this repurchase agreement. During 2018, the Company entered into a repurchase agreement, the proceeds of which were collateralized by private education loans. On June 25, 2019, the Company terminated this repurchase agreement. Included in "other borrowings" as of December 31, 2018 was $45.0 million subject to this repurchase agreement. On May 30, 2019, the Company entered into a $22.0 million secured line of credit agreement with a maturity date of May 30, 2022 and an interest rate of one-month LIBOR plus 1.75%. As of September 30, 2019, $5.0 million was outstanding under this line of credit and $17.0 million was available for future use. The line of credit is secured by several Company-owned properties. The Company had other notes payable included in its consolidated financial statements which were issued by partnerships for certain real estate development projects. Although the Company's ownership interests in these partnerships are 50 percent or less, because the Company was the developer of and is a current tenant in the associated buildings, the operating results of these partnerships were included in the Company's consolidated financial statements. On January 1, 2019, the Company adopted a new accounting standard for leases (see note 1). As a result of the adoption of this new standard, these real estate entities were deconsolidated, including $33.9 million of related debt. Prior to January 1, 2019, this debt was included in "other borrowings."

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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