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Borrowings | 12 Months Ended
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Dec. 31, 2016
Debt Disclosure [Abstract] |
Borrowings | Borrowings At December 31, 2016 and 2015, the Company’s borrowings had the following debt balances, weighted average maturities and interest rates:
| December 31, 2016 |  | December 31, 2015
| Maximum Amount of Borrowings |  | Borrowings Outstanding |  | Maturity (1) |  | Weighted Average Rate (2) |  | Maximum Amount of Borrowings |  | Borrowings Outstanding |  | Maturity (1) |  | Weighted Average Rate (2)
JPMorgan Facility (3) | $943,000 |  | $657,452 |  | January 2019 |  | L + 2.25% |  |  | $600,000 |  | $445,942 |  | January 2019 |  | L + 2.25% |
DB Repurchase Facility | 300,000 |  | 137,355 |  | September 2019 |  | L + 2.66% |  |  | N/A |  | N/A |  | N/A |  | N/A |
Goldman Loan | N/A |  | 40,657 |  | April 2019 |  | L + 3.50% |  |  | N/A |  | 45,928 |  | April 2019 |  | L + 3.50% |
Sub-total |  |  | 835,464 |  |  |  | L + 2.38% |  |  |  |  | 491,870 |  |  |  | L + 2.37% |
UBS Facility | N/A |  | 133,899 |  | September 2018 |  | 2.79 | % |  | N/A |  | 133,899 |  | September 2018 |  | 2.79 | %
DB Facility (4) | N/A |  | 177,203 |  | April 2018 |  | 3.63 | % |  | N/A |  | 300,005 |  | April 2018 |  | 3.69 | %
Sub-total |  |  | 311,102 |  |  |  | 3.27 | % |  |  |  | 433,904 |  |  |  | 3.39 | %
less: deferred financing costs |  |  | (6,763) |  |  |  |  |  |  |  | (7,353) |  |  |  |
Total / Weighted Average |  |  | $1,139,803 |  |  |  | 3.18 | % |  |  |  | $918,421 |  |  |  | 2.92 | %
(1) Maturity date assumes extensions at the Company's option are exercised. (2) Assumes one-month LIBOR at December 31, 2016 and December 31, 2015 was 0.77% and 0.43% respectively. (3) As of December 31, 2016, the JP Morgan Facility provided for a maximum total borrowings comprised of the $800,000 repurchase facility and a $143,000 asset specific financing . (4) 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, 2016, 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
JPMorgan Facility | $ | 245,908 |  |  | $ | 411,544 |  |  | $ | — |  |  | $ | — |  |  | $ | 657,452 |
DB Repurchase Facility | — |  |  | 137,355 |  |  | — |  |  | — |  |  | 137,355 |
Goldman Loan | 5,290 |  |  | 35,367 |  |  | — |  |  | — |  |  | 40,657 |
UBS Facility * | 133,899 |  |  | — |  |  | — |  |  | — |  |  | 133,899 |
DB Facility | 1,450 |  |  | 175,753 |  |  | — |  |  | — |  |  | 177,203 |
Total | $ | 386,547 |  |  | $ | 760,019 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,146,566 |
* | Assumes extension options are exercised.
The table below summarizes the outstanding balances, as well as the maximum and average balances as of December 31, 2016 and 2015.
|  |  | 2016 |  |  |  | 2015
| Balance at December 31, 2016 |  | Maximum Month-End Balance |  | Average Month-End Balance |  | Balance at December 31, 2015 |  | Maximum Month-End Balance |  | Average Month-End Balance
JPMorgan Facility | $ | 657,452 |  |  | $ | 783,528 |  |  | $ | 660,741 |  |  | $ | 445,942 |  |  | $ | 445,942 |  |  | $ | 261,261 |
DB Repurchase Facility | 137,355 |  |  | 137,355 |  |  | 19,582 |  |  | — |  |  | — |  |  | — |
Goldman Loan | 40,657 |  |  | 45,928 |  |  | 43,505 |  |  | 45,928 |  |  | 52,524 |  |  | 45,665 |
UBS Facility | 133,899 |  |  | 133,899 |  |  | 133,899 |  |  | 133,899 |  |  | 133,899 |  |  | 133,899 |
DB Facility | 177,203 |  |  | 300,005 |  |  | 246,773 |  |  | 300,005 |  |  | 300,005 |  |  | 300,005 |
Total | $ | 1,146,566 |  |  |  |  |  |  | $ | 925,774 |  |  |  |  |
Repurchase Agreements JPMorgan Facility In January 2010, the Company, through two indirect wholly owned subsidiaries, entered into the JPMorgan Facility, which as amended in 2015 and 2016, currently provides for a maximum total borrowings of $943,000, comprised of the $800,000 repurchase facility and a $143,000 asset specific financing, and a three-year term expiring in January 2018 plus a one-year extension option available at the Company's option, subject to certain conditions. 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. As of December 31, 2016, the Company had $657,452 of borrowings outstanding under the JPMorgan Facility secured by certain of the Company's commercial mortgage and subordinate loans. DB Repurchase Facility On September 29, 2016, the Company, through an indirect wholly-owned subsidiary, entered into a master repurchase agreement with Deutsche Bank AG, Cayman Islands Branch (the “DB Repurchase Facility”) to provide up to $300,000 of advances in connection with financing first mortgage loans secured by real estate. The DB Repurchase Facility matures in September 2017, with two one-year extension options available at the Company's option, subject to certain conditions, and accrues interest at per annum pricing equal to the sum of one-month LIBOR plus an applicable spread. Margin calls may occur any time at specified aggregate margin deficit thresholds. The DB Facility contains customary covenants, including continuing to operate in a manner that allows the Company to qualify as a real estate investment trust for federal income tax purposes and financial covenants with respect to minimum consolidated tangible net worth, maximum total indebtedness to consolidated tangible net worth, and minimum liquidity. The Company has agreed to provide a guarantee of the obligations of its indirect wholly-owned subsidiaries under the DB Repurchase Facility. As of December 31, 2016, the Company had $137,355 of borrowings outstanding under the DB Repurchase Facility secured by certain of the Company's commercial mortgage loans. 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 matures in September 2017, with a one-year extension available at the Company's option, subject to certain conditions. 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 condensed consolidated balance sheets. Additionally, 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. As of December 31, 2016, the Company had $133,899 of borrowings outstanding under the UBS Facility secured by CMBS held by the Company. 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 $300,000 in order to finance the acquisition of CMBS. The DB Facility matures in April 2018. 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. Additionally, the undrawn amount is subject to a 1.8% non-use fee. 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. As of December 31, 2016, the Company had $177,203 of borrowings outstanding under the DB Facility secured by CMBS held by the Company. 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. As of December 31, 2016, the Company had $40,657 of borrowings outstanding under the Goldman Loan secured by one commercial mortgage loan held by the Company. The Company was in compliance with the financial covenants under its repurchase agreements at December 31, 2016 and December 31, 2015.

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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 + Details
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