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Borrowings | 12 Months Ended
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Dec. 31, 2015
Debt Disclosure [Abstract] |
Borrowings | Borrowings At December 31, 2015 and 2014, the Company’s borrowings had the following debt balances, weighted average maturities and interest rates:
| December 31, 2015 |  | December 31, 2014 |
| Debt Balance |  | Weighted Average Remaining Maturity |  | Weighted Average Rate |  | Debt Balance |  | Weighted Average Remaining Maturity |  | Weighted Average Rate |
Wells Facility borrowings | $ | — |  |  | 0 |  | — | % |  | $ | 20,166 |  |  | 0.2 years |  | 1.0 | % | **
UBS Facility borrowings | 133,899 |  |  | 2.7 years | * | 2.8 | % |  | 133,899 |  |  | 3.7 years |  | 2.8 | % | Fixed
DB Facility borrowings | 300,005 |  |  | 2.3 years |  | 3.7 | % |  | 300,005 |  |  | 3.3 years |  | 3.7 | % | ***
JPMorgan Facility borrowings | 445,942 |  |  | 3.1 years |  | 2.6 | % |  | 168,124 |  |  | 0.1 years |  | 2.7 | % | L+225-475
Goldman Loan | 45,928 |  |  | 3.3 years |  | 3.8 | % |  | — |  |  | 0 |  | — | % | L+350
Total borrowings | $ | 925,774 |  |  | 2.7 years |  | 2.9 | % |  | $ | 622,194 |  |  | 3.2 years |  | 3.2 | % |
* | Assumes extension options are exercised.
** 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, 2015, 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
UBS Facility borrowings * | $ | 5,004 |  |  | $ | 128,895 |  |  | $ | — |  |  | $ | — |  |  | $ | 133,899 |
DB Facility borrowings | 74,251 |  |  | 225,754 |  |  | — |  |  | — |  |  | 300,005 |
JPMorgan Facility borrowings * | 62,454 |  |  | 122,081 |  |  | 261,407 |  |  | — |  |  | 445,942 |
Goldman Loan | 3,848 |  |  | 10,580 |  |  | 31,500 |  |  | — |  |  | 45,928 |
Total | $ | 145,557 |  |  | $ | 487,310 |  |  | $ | 292,907 |  |  | $ | — |  |  | $ | 925,774 |
* | Assumes extension options are exercised.
The table below summarizes the outstanding balances, as well as the maximum and average balances as of December 31, 2015 and 2014.
|  |  | 2015 |  |  |  | 2014
| Balance at December 31, 2015 |  | Maximum Month-End Balance |  | Average Month-End Balance |  | Balance at December 31, 2014 |  | Maximum Month-End Balance |  | Average Month-End Balance
Wells Facility borrowings | $ | — |  |  | $ | 22,254 |  |  | $ | 3,263 |  |  | $ | 20,166 |  |  | $ | 47,751 |  |  | $ | 28,921 |
UBS Facility borrowings | 133,899 |  |  | 133,899 |  |  | 133,899 |  |  | 133,899 |  |  | 133,899 |  |  | 133,899 |
DB Facility borrowings | 300,005 |  |  | 300,005 |  |  | 300,005 |  |  | $ | 300,005 |  |  | $ | 300,005 |  |  | $ | 145,856 |
JPMorgan Facility borrowings | 445,942 |  |  | 445,942 |  |  | 261,261 |  |  | $ | 168,124 |  |  | $ | 169,066 |  |  | $ | 105,366 |
Goldman Loan | 45,928 |  |  | 52,524 |  |  | 45,665 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total | $ | 925,774 |  |  |  |  |  |  | $ | 622,194 |  |  |  |  |
Repurchase Agreements Wells Facility In August 2010, the Company, through an indirect wholly owned subsidiary, entered into the Wells Facility, which provided for borrowings in order to finance the acquisition of AAA-rated CMBS. The term of the Wells Facility expires in March 2016. During February 2015, the Company repaid the outstanding balance under the Wells Facility upon the sale of the pledged collateral, and no further borrowings are permitted. The purchase price of the CMBS was 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 bore interest at a rate of LIBOR + 0.80%. Advance rates under the Wells Facility typically ranged from 85%-90% on the face amount of the underlying collateral depending on the weighted average life of the collateral pledged, and for assets purchased after January 8, 2015, 95.0% of market value. Margin calls would have occurred 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 accrued 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, which as amended in 2015, currently provides for a maximum aggregate purchase price of $600,000 and a three-year term expiring in January 2018 plus a one-year extension option, exercisable at the option of the Company subject to certain conditions and the payment of a fee, for the purchase, sale and repurchase of eligible senior commercial or multifamily mortgage loans, junior commercial or multifamily mortgage loans, mezzanine loans and participation interests therein that are secured by properties located in the United States, England or Wales. Amounts borrowed under the JPMorgan Facility bear interest at spreads ranging from 2.25% to 4.75% over one-month LIBOR. Maximum advance rates under the JPMorgan Facility range from 25% to 80% on the estimated fair value of the pledged collateral depending on its LTV. Margin calls may occur any time the aggregate repurchase price exceeds the agreed upon advance rate multiplied by the market value of the assets by more than $250. The JPMorgan Facility contains, among others, the following restrictive covenants: (1) continuing to operate in a manner that allows the Company to qualify as a REIT and (2) financial covenants, including (A) a minimum consolidated tangible net worth covenant ($750,000 plus 75% of the net cash proceeds of any equity issuance by the Company), (B) maximum total indebtedness to consolidated tangible net worth (3:1), or (C) minimum liquidity (the greater of 5% of the Company’s total recourse indebtedness or $15,000). The Company has agreed to provide a limited guarantee of the obligations of its indirect wholly-owned subsidiaries under the JPMorgan Facility. Goldman Loan On January 26, 2015, the Company, through an indirect wholly-owned subsidiary, entered into the Goldman Loan. The Goldman Loan provides for a purchase price of $52,524 and a repurchase date of the earliest of: (1) April 30, 2019, (2) an early repurchase date as a result of repayment or sale of the purchased loan, or (3) an accelerated repurchase date as a result of certain events of default. Subject to the terms and conditions thereof, the Goldman Loan provides for the purchase and sale of certain participation interests in a mortgage loan secured by single-family and condominium properties. Prior to an event of default, amounts borrowed under the Goldman Loan bear interest at a spread of 3.5% plus one-month LIBOR. In addition, the Goldman Loan provides that margin calls may occur during the continuance of certain credit events if the market value of the mortgaged properties drop below an agreed upon percentage. The Goldman Loan contains affirmative and negative covenants and provisions regarding events of default that are normal and customary for similar repurchase agreements. The Company has agreed to the following restrictive covenants, among others: (1) continuing to operate in a manner that allows the Company to qualify as a REIT and (2) financial covenants, including (A) a minimum consolidated tangible net worth covenant ($750,000), (B) maximum total indebtedness to consolidated tangible net worth (3:1), (C) minimum liquidity ($15,000), (D) minimum sum of (i) cash liquidity and (ii) “near cash liquidity” (5.0% of the Company’s total recourse indebtedness), (E) minimum net income (one U.S. dollar during any four consecutive fiscal quarters) and (F) a minimum ratio of EBITDA to interest expense (1.5 to 1.0). The Company has also agreed to provide a guarantee of the obligations under the Goldman Loan. The Company was in compliance with the financial covenants under its repurchase agreements at December 31, 2015 and December 31, 2014.

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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 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 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 + Details
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