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Borrowings Under Repurchase Agreements | 9 Months Ended
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Sep. 30, 2014
Debt Disclosure [Abstract] |
Borrowings Under Repurchase Agreements | Borrowings Under Repurchase Agreements At September 30, 2014 and December 31, 2013, the Company had borrowings outstanding under the Company’s master repurchase agreement with JPMorgan Chase Bank, N.A. (“JPMorgan”) (the “JPMorgan Facility”), the Wells Facility, the UBS Facility and the DB Facility. At September 30, 2014 and December 31, 2013, the Company’s borrowings had the following debt balances, weighted average maturities and interest rates:
| September 30, 2014 |  | December 31, 2013 |  |
| Debt Balance |  | Weighted Average Remaining Maturity |  | Weighted Average Rate |  | Debt Balance |  | Weighted Average Remaining Maturity |  | Weighted Average Rate |  |
Wells Facility borrowings | $ | 20,990 |  |  | 0.4 years |  | 1.0 | % |  | $ | 47,751 |  |  | 0.2 years | * | 1.2 | % |  | **
UBS Facility borrowings | 133,899 |  |  | 4.0 years | * | 2.8 | % |  | 133,899 |  |  | 4.7 years |  | 2.8 | % |  | Fixed
DB Facility borrowings | 260,155 |  |  | 3.5 years |  | 3.8 | % |  | — |  |  | 0.0 years |  | — | % |  | ***
JPMorgan Facility borrowings | 122,722 |  |  | 0.3 years |  | 2.7 | % |  | 20,383 |  |  | 1.1 years |  | 2.7 | % |  | L+250
Total borrowings | $ | 537,766 |  |  | 2.8 years |  | 3.2 | % |  | $ | 202,033 |  |  | 3.3 years |  | 2.4 | % |  |
*Assumes extension options are exercised. **At December 31, 2013, borrowings outstanding under the Wells Facility bore interest at LIBOR plus 105 basis points. At September 30, 2014, borrowings outstanding under the Wells Facility bore interest at LIBOR plus 80 basis points. *** Advances under the DB Facility accrue interest at a per annum pricing rate based on the rate implied by the fixed rate bid under a fixed for floating interest rate swap for the receipt of payments indexed to three-month U.S. dollar LIBOR, plus a financing spread ranging from 1.80% to 2.32% based on the rating of the collateral pledged. At September 30, 2014, the Company’s borrowings had the following remaining maturities:
| Less than 1 year |  | 1 to 3 years |  | 3 to 5 years |  | More than 5 years |  | Total
Wells Facility borrowings | $ | 20,990 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 20,990 |
UBS Facility borrowings * | — |  |  | 133,899 |  |  | — |  |  | — |  |  | 133,899 |
DB Facility borrowings | 5,530 |  |  | 153,463 |  |  | 101,162 |  |  | — |  |  | 260,155 |
JPMorgan Facility borrowings | 122,722 |  |  | — |  |  | — |  |  | — |  |  | 122,722 |
Total | $ | 149,242 |  |  | $ | 287,362 |  |  | $ | 101,162 |  |  | $ | — |  |  | $ | 537,766 |
*Assumes extension option is exercised. At September 30, 2014, the Company’s collateralized financings were comprised of borrowings outstanding under the Wells Facility, the UBS Facility, the DB Facility and the JPMorgan Facility. The table below summarizes the outstanding balances at September 30, 2014, as well as the maximum and average balances for the nine months ended September 30, 2014.
|  |  | For the nine months ended September 30, 2014
| Balance at September 30, 2014 |  | Maximum Month-End Balance |  | Average Month-End Balance
Wells Facility borrowings | $ | 20,990 |  |  | $ | 47,751 |  |  | $ | 31,436 |
UBS Facility borrowings | 133,899 |  |  | 133,899 |  |  | 133,899 |
DB Facility borrowings | 260,155 |  |  | 260,155 |  |  | 99,611 |
JPMorgan Facility borrowings | 122,722 |  |  | 169,066 |  |  | 92,026 |
Total | $ | 537,766 |  |  |  |  |
DB Facility. During April 2014, the Company through an indirect wholly-owned subsidiary entered into the DB Facility with DB pursuant to which the Company may borrow up to $100,000 in order to finance the acquisition of CMBS. As of September 30, 2014, the DB Facility was amended to permit the Company to borrow up to $275,000. Subsequent to September 30, 2014, the DB Facility was further amended to permit the Company to borrow up to $300,000. The DB Facility has a term of four years, subject to certain restrictions. Advances under the DB Facility accrue interest at a per annum pricing rate based on the rate implied by the fixed rate bid under a fixed for floating interest rate swap for the receipt of payments indexed to three-month U.S. dollar LIBOR, plus a financing spread ranging from 1.80% to 2.32% based on the rating of the collateral pledged. The Company borrows an amount equal to the product of the estimated fair value of the collateral pledged divided by a margin ratio ranging from 125.00% to 181.82% depending on the collateral pledged. Additionally, beginning on December 7, 2014 and depending on the utilization rate of the facility, a portion of the undrawn amount may be subject to non-use fees. The DB Facility contains customary terms and conditions for repurchase facilities of this type and financial covenants to be met by the Company, including minimum shareholder's equity of 50% of the gross capital proceeds of its initial public offering and any subsequent public or private offerings. JPMorgan Facility. On April 25, 2014, the Company, through two subsidiaries (the "Funding Subsidiaries"), entered into a letter agreement to temporarily waive, for a period of up to 30 days, compliance with the minimum liquidity covenant under the JPMorgan Facility that requires the Company to maintain minimum liquidity of the greater of 10% of total consolidated recourse indebtedness and $12,500. On May 9, 2014, the Company and the Funding Subsidiaries entered into an amendment letter to temporarily increase the maximum permitted borrowing under the JPMorgan Facility from $100,000 to approximately $146,814 and to amend the terms of the JPMorgan Facility in order to finance the acquisition of certain mezzanine real estate loans. This letter expired on May 23, 2014. On May 22, 2014, the Company and the Funding Subsidiaries entered into an amendment letter to extend, until June 6, 2014, (i) the temporary increase of the maximum permitted borrowing under the JPMorgan Facility from $100,000 to approximately $146,814 and (ii) the waiver of compliance with the minimum liquidity covenant under the JPMorgan Facility that was previously granted on April 25, 2014. On June 6, 2014, the Company and the Funding Subsidiaries entered into amendment letters to extend, as applicable, (i) until June 12, 2014, the temporary increase of the maximum permitted borrowing under the JPMorgan Facility from $100,000 to approximately $146,814, and (ii) until July 1, 2014, the waiver of compliance with the minimum liquidity covenant under the JPMorgan Facility that was previously granted on April 25, 2014. On June 12, 2014, the Company and the Funding Subsidiaries entered into a third amendment and restatement of the JP Morgan Facility (the “Third Amendment and Restatement”) with JPMorgan. The Third Amendment and Restatement amended the JPMorgan Facility to facilitate the financing of mezzanine loans under the JPMorgan Facility and increased the maximum permitted borrowing to $175,000. In connection with the Third Amendment and Restatement, the guarantee provided by the Company for the obligations of the Funding Subsidiaries was also amended to require the Company to hold minimum liquidity equal to the greater of 5% of its total recourse indebtedness and $15,000. The Third Amendment and Restatement contains affirmative and negative covenants and provisions regarding events of default that are customary for similar repurchase facilities. The Third Amendment and Restatement expires in January 2015. Wells Facility. In February 2014, the maturity date of the Wells Facility was extended to March 2015. In addition, the Company reduced the interest rate to LIBOR plus 80 basis points from LIBOR plus 105 basis points. The Company was in compliance with the financial covenants under its repurchase agreements at September 30, 2014 and December 31, 2013.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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