Borrowings

At December 31, 2014 and 2013, the Company had borrowings outstanding under the JPMorgan Facility, the Wells Facility, the UBS Facility and the DB Facility. At December 31, 2014 and 2013, the Company’s borrowings had the following debt balances, weighted average maturities and interest rates:



	December 31, 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	$	20,166	0.2 years		1.0	%	$	47,751	0.2 years	1.2	%	**
UBS Facility borrowings	133,899		3.7 years	*	2.8	%	133,899		4.7 years	2.8	%	Fixed
DB Facility borrowings	300,005		3.3 years		3.7	%	—		0.0 years	—	%	***
JPMorgan Facility borrowings	168,124		0.1 years		2.7	%	20,383		1.1 years	2.7	%	L+250
Total borrowings	$	622,194	3.2 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 December 31, 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 December 31, 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	$	20,166	$	—	$	—	$	—	$	20,166
UBS Facility borrowings *	—		133,899		—		—		133,899
DB Facility borrowings	40,476		213,654		45,875		—		300,005
JPMorgan Facility borrowings	168,124		—		—		—		168,124
Total	$	228,766	$	347,553	$	45,875	$	—	$	622,194


*	Assumes extension options are exercised.

The table below summarizes the outstanding balances, as well as the maximum and average balances as of December 31, 2014 and 2013.



			2014						2013
	Balance at December 31, 2014		Maximum Month-End Balance		Average Month-End Balance		Balance at December 31, 2013		Maximum Month-End Balance		Average Month-End Balance
Wells Facility borrowings	$	20,166	$	47,751	$	28,921	$	47,751	$	225,156	$	168,747
UBS Facility borrowings	133,899		133,899		133,899		133,899		133,899		31,728
DB Facility borrowings	300,005		300,005		145,856		$	—	$	—	$	—
JPMorgan Facility borrowings	168,124		169,066		105,366		$	20,383	$	20,383	$	3,138
Total	$	622,194					$	202,033

Repurchase Agreements

Wells Facility

In August 2010, the Company, through an indirect wholly owned subsidiary, entered into the Wells Facility. The Wells Facility currently provides for borrowings of up to $506,000 in order to finance the acquisition of AAA-rated CMBS. The term of the Wells Facility expires in March 2015. The purchase price of the CMBS is determined on a per asset basis by applying an advance rate schedule agreed upon by the Company and Wells Fargo. Amounts borrowed under the Wells Facility bear interest at a rate of LIBOR + 0.80%. Advance rates under the Wells Facility typically range from 85%-90% on the face amount of the underlying collateral depending on the weighted average life of the collateral pledged. Margin calls will occur any time the outstanding loan balance exceeds the lender’s required advance in accordance with agreed upon advance rates by more than $250. The Wells Facility contains, among others, the following restrictive covenants: (1) negative covenants intended to restrict the Company from failing to qualify as a REIT and (2) financial covenants to be met by the Company, including a minimum net asset value covenant (which shall not be less than an amount equal to (i) $100,000, (ii) 75% of the greatest net asset value during the prior calendar quarter and (iii) 65% of the greatest net asset value during the prior calendar year), a maximum total debt to consolidated tangible net worth covenant (8:1), a minimum liquidity covenant ($2,500) and a minimum EBITDA to interest expense covenant (1.5:1). The Company has agreed to provide a limited guarantee of up to 15%, or a maximum of $37,500, of the obligations of its indirect wholly-owned subsidiary under the Wells Facility.

The pricing margin for all assets financed under the Wells Facility is 1.50%. The Company is required to maintain at all times an amount in Repo Liquidity (as generally defined to include all amounts held in the collection account established under the Wells Facility for the benefit of Wells Fargo, cash, cash equivalents, super-senior CMBS rated AAA by at least two rating agencies, and total amounts immediately and unconditionally available on an unrestricted basis under all outstanding capital commitments, subscription facilities and secured revolving credit or repurchase facilities) no less than the greater of 10% of the total consolidated recourse indebtedness of the Company and $12,500. Advances under the Wells Facility accrue interest at a per annum pricing rate equal to the sum of (i) 30 day LIBOR and (ii) the applicable pricing margin.

UBS Facility

In September 2013, the Company through an indirect wholly-owned subsidiary entered into the UBS Facility, which currently provides that the Company may borrow up to $133,899 in order to finance the acquisition of CMBS. The UBS Facility has a term of four years, with a one-year extension available at the Company's option, subject to certain restrictions. Advances under the UBS Facility accrue interest at a per annum pricing rate equal to a spread of 1.55% per annum over the rate implied by the fixed rate bid under a fixed-for-floating interest rate swap for the receipt of payments indexed to six-month U.S. dollar LIBOR. The Company borrows 100% of the estimated fair value of the collateral pledged and posts margin equal to 22.5% of that borrowing amount in cash. The margin posted is classified as restricted cash on the Company's consolidated balance sheets. Additionally, beginning on the 121st day following the closing date and depending on the utilization rate of the facility, a portion of the undrawn amount may be subject to non-use fees. The UBS Facility contains customary terms and conditions for repurchase facilities of this type and financial covenants to be met by the Company, including a minimum net asset value covenant (which shall not be less than an amount equal to $500,000 and a maximum total debt to consolidated tangible net worth covenant (3:1). The Company has agreed to provide a full guarantee of the obligations of its indirect wholly-owned subsidiary under the UBS Facility.

DB Facility

In April 2014, the Company, through an indirect wholly-owned subsidiary, entered into the DB Facility, which currently provides that the Company may borrow up to $300,005 in order to finance the acquisition of CMBS. The DB Facility matures in April 2018, 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, since 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

In January 2010, the Company, through two indirect wholly owned subsidiaries, entered into the JPMorgan Facility. As of December 31, 2014 the JPMorgan Facility provided that the Company may borrow up to $175,000 in order to finance the origination and acquisition of commercial first mortgage loans and AAA-rated CMBS. Amounts borrowed under the JPMorgan Facility bore interest at a rate of LIBOR+2.5%. Advance rates under the JPMorgan Facility typically range from 65%-90% on the estimated fair value of the pledged collateral depending on its LTV. Margin calls will occur any time the outstanding loan balance exceeds the lender’s required advance in accordance with agreed upon advance rates by more than $250. The Company has agreed to provide a full guarantee for the obligations of its borrower subsidiaries under the JPMorgan Facility and is requires to hold minimum liquidity equal to the greater of 5% of its total recourse indebtedness and $15,000. The JPMorgan Facility contains, among others, the following restrictive covenants: (1) negative covenants relating to restrictions on the Company’s operations that would cease to allow the Company to qualify as a REIT and (2) financial covenants to be met by the Company when the repurchase facility is being utilized, including a minimum consolidated tangible net worth covenant ($125,000), maximum total debt to consolidated tangible net worth covenant (3:1), a minimum liquidity covenant (the greater of 10% of total consolidated recourse indebtedness and $12,500) and a minimum net income covenant (one U.S. dollar during any four consecutive fiscal quarters). The Company agreed to provide a limited guarantee of the obligations of its indirect wholly-owned subsidiaries under the Amended and Restated JPMorgan Facility.

The Company was in compliance with the financial covenants under its repurchase agreements at December 31, 2014 and December 31, 2013.