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Borrowings Under Repurchase Agreements | 6 Months Ended
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Jun. 30, 2017
Debt Disclosure [Abstract] |
Borrowings Under Repurchase Agreements | Borrowings Under Repurchase Agreements At June 30, 2017 and December 31, 2016, the Company’s borrowings had the following outstanding balances, maturities and weighted average interest rates:
| June 30, 2017 |  |  | December 31, 2016
Lender | 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) | $ | 1,118,000 |  |  | $ | 794,404 |  |  | March 2020 |  | L+2.26% |  |  |  | $ | 943,000 |  |  | $ | 657,452 |  |  | January 2019 |  | L+2.25% |
DB Repurchase Facility (4) | 563,813 |  |  | 263,980 |  |  | March 2020 |  | L+2.56% |  |  |  | 300,000 |  |  | 137,355 |  |  | September 2019 |  | L+2.66% |
Goldman Loan | 37,700 |  |  | 37,700 |  |  | April 2019 |  | L+3.50% |  |  |  | N/A |  |  | 40,657 |  |  | April 2019 |  | L+3.50% |
Sub-total | 1,719,513 |  |  | 1,096,084 |  |  |  |  | L+2.37% |  |  |  |  |  |  | 835,464 |  |  |  |  | L+2.38% |
UBS Facility | 133,899 |  |  | 100,798 |  |  | September 2018 |  | 2.77 | % |  |  | N/A |  |  | 133,899 |  |  | September 2018 |  | 2.79 | %
DB Facility (5) | 300,000 |  |  | 143,372 |  |  | April 2018 |  | 3.59 | % |  |  | N/A |  |  | 177,203 |  |  | April 2018 |  | 3.63 | %
Sub-total | 433,899 |  |  | 244,170 |  |  |  |  | 3.25 | % |  |  |  |  |  | 311,102 |  |  |  |  | 3.27 | %
Less: deferred financing costs | N/A |  |  | (9,345 | ) |  |  |  | N/A |  |  |  | N/A |  |  | (6,763 | ) |  |  |  | N/A |
Total / Weighted Average | $ | 2,153,412 |  |  | $ | 1,330,909 |  |  |  |  | 3.53 | % |  |  |  |  |  | $ | 1,139,803 |  |  |  |  | 3.18 | %
(1) Maturity date assumes all extensions are exercised. (2) Assumes one-month LIBOR was 1.22% and 0.77% as of June 30, 2017 and December 31, 2016, respectively. (3) As of June 30, 2017, the Company's master repurchase agreement with JPMorgan Chase Bank, National Association (the "JPMorgan Facility") provided for maximum total borrowings comprised of the $975,000 repurchase facility and a $143,000 asset specific financing. (4) As of June 30, 2017, the Company's master repurchase agreement with Deutsche Bank AG, Cayman Islands Branch (the "DB Repurchase Facility") provided for maximum total borrowings comprised of the $450,000 and £45,000 repurchase facility and a $55,200 asset specific financing. (5) 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 June 30, 2017, 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 | $ | 436,546 |  |  | $ | 357,858 |  |  | $ | — |  |  | $ | — |  |  | $ | 794,404 |
DB Repurchase Facility | 58,613 |  |  | 205,367 |  |  | — |  |  | — |  |  | 263,980 |
Goldman Loan | — |  |  | 37,700 |  |  | — |  |  | — |  |  | 37,700 |
UBS Facility | — |  |  | 100,798 |  |  | — |  |  | — |  |  | 100,798 |
DB Facility | 143,372 |  |  | — |  |  | — |  |  | — |  |  | 143,372 |
Total | $ | 638,531 |  |  | $ | 701,723 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,340,254 |
At June 30, 2017, the Company’s collateralized financings were comprised of borrowings outstanding under the JPMorgan Facility, the DB Repurchase Facility, the Company's repurchase agreement with Goldman Sachs Bank USA (the "Goldman Loan"), the UBS Facility and the DB Facility. The table below summarizes the outstanding balances at June 30, 2017, as well as the maximum and average month-end balances for the six months ended June 30, 2017 for the Company's borrowings under repurchase agreements.
|  |  | For the six months ended June 30, 2017
| Balance at June 30, 2017 |  | Maximum Month-End Balance |  | Average Month-End Balance
JPMorgan Facility borrowings | $ | 794,404 |  |  | $ | 894,031 |  |  | $ | 832,685 |
DB Repurchase Facility borrowings | 263,980 |  |  | 367,010 |  |  | 297,148 |
Goldman Loan borrowings | 37,700 |  |  | 39,590 |  |  | 38,707 |
UBS Facility borrowings | 100,798 |  |  | 133,899 |  |  | 111,832 |
DB Facility borrowings | 143,372 |  |  | 177,203 |  |  | 149,453 |
Total | $ | 1,340,254 |  |  |  |  |
JPMorgan Facility On March 31, 2017, the Company, through two indirect wholly owned subsidiaries, amended and restated the JPMorgan Facility, which currently provides for maximum total borrowings of $1,118,000, comprised of the $975,000 repurchase facility and a $143,000 asset specific financing, and a term expiring in March 2019 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. 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 Company has agreed to provide a limited guarantee of the obligations of its indirect wholly-owned subsidiaries under the JPMorgan Facility. As of June 30, 2017, the Company had $794,404 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 indirect wholly-owned subsidiaries, entered into the DB Repurchase Facility which provides for maximum total borrowings of $563,813 comprised of the $450,000 and £45,000 repurchase facility and a $55,200 asset specific financing in connection with financing first mortgage loans secured by real estate. The DB Repurchase Facility matures in March 2018 with two one-year extension options available at the Company's option, subject to certain conditions. Amounts borrowed under the DB Repurchase Facility bear interest at spreads ranging from 2.10% to 3.00% over one-month LIBOR. Margin calls may occur any time at specified aggregate margin deficit thresholds. The Company has agreed to provide a guarantee of the obligations of its indirect wholly-owned subsidiaries under this facility. As of June 30, 2017, the Company had $263,980 borrowings outstanding under the DB Repurchase Facility secured by certain of the Company's commercial mortgage loans. 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 $37,700 (as of June 30, 2017) 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 June 30, 2017, the Company had $37,700 of borrowings outstanding under the Goldman Loan secured by one commercial mortgage loan held by the Company. 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 posted agreed-upon initial margin in cash and is required to post additional margin based on the fair value of the underlying collateral. 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 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 June 30, 2017, the Company had $100,798 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. The Company posted agreed-upon initial margin in cash and is required to post additional margin based on the fair value of the underlying collateral. The margin posted is classified as restricted cash on the Company's condensed consolidated balance sheets. Additionally, the undrawn amount is subject to a 1.8% non-use fee. The DB Facility contains customary terms and conditions for 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 June 30, 2017, the Company had $143,372 of borrowings outstanding under the DB Facility secured by CMBS held by the Company. The Company was in compliance with the financial covenants under its borrowing agreements at June 30, 2017 and December 31, 2016.

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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 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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