XML 35 R25.htm IDEA: XBRL DOCUMENT
v3.23.1

Long-Term Debt | 3 Months Ended
--- | ---
Mar. 31, 2023
Debt Disclosure [Abstract] |
Long-Term Debt | Long-Term Debt The tables below summarize our long-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at March 31, 2023 and December 31, 2022. Table 16.1 – Long-Term Debt
|  | March 31, 2023
(Dollars in Thousands) |  | Borrowings |  | Unamortized Deferred Issuance Costs / Discount |  | Net Carrying Value |  | Limit |  | Weighted Average Interest Rate (1) |  | Final Maturity
Facilities |  |  |  |  |  |  |  |  |  |  |  |
Recourse Subordinate Securities Financing |  |  |  |  |  |  |  |  |  |  |  |
Facility A |  | $ | 129,329 |  |  | $ | — |  |  | $ | 129,329 |  |  | N/A |  | 5.71 | % |  | 9/2024
Facility B |  | 101,691 |  |  | — |  |  | 101,691 |  |  | N/A |  | 5.71 | % |  | 2/2025
Facility C |  | 66,197 |  |  | (63) |  |  | 66,134 |  |  | N/A |  | 4.75 | % |  | 6/2026
Non-Recourse BPL Financing |  |  |  |  |  |  |  |  |  |  |  |
Facility D |  | 427,310 |  |  | (68) |  |  | 427,242 |  |  | $ | 750,000 |  |  | SOFR + 2.87% |  | N/A
Facility E |  | 305,159 |  |  | (912) |  |  | 304,247 |  |  | 335,000 |  |  | SOFR + 3.25% |  | 12/2025
Recourse BPL Financing |  |  |  |  |  |  |  |  |  |  |  |
Facility F |  | — |  |  | — |  |  | — |  |  | 500,000 |  |  | SOFR + 2.25%-2.50% |  | 9/2024
Recourse MSR Financing |  |  |  |  |  |  |  |  |  |  |  |
Facility G |  | 47,456 |  |  | — |  |  | 47,456 |  |  | 50,000 |  |  | SOFR + 3.25% |  | 9/2024
Total Long-Term Debt Facilities |  | 1,077,142 |  |  | (1,043) |  |  | 1,076,099 |  |  |  |  |  |  |
Convertible notes |  |  |  |  |  |  |  |  |  |  |  |
5.625% convertible senior notes |  | 150,200 |  |  | (1,076) |  |  | 149,124 |  |  | N/A |  | 5.625 | % |  | 7/2024
5.75% exchangeable senior notes |  | 162,092 |  |  | (2,207) |  |  | 159,885 |  |  | N/A |  | 5.75 | % |  | 10/2025
7.75% convertible senior notes |  | 215,000 |  |  | (5,859) |  |  | 209,141 |  |  | N/A |  | 7.75 | % |  | 6/2027
Trust preferred securities and subordinated notes |  | 139,500 |  |  | (721) |  |  | 138,779 |  |  | N/A |  | L + 2.25% |  | 7/2037
Total Long-Term Debt |  | $ | 1,743,934 |  |  | $ | (10,906) |  |  | $ | 1,733,028 |  |  |  |  |  |  |
|  | December 31, 2022
(Dollars in Thousands) |  | Borrowings |  | Unamortized Deferred Issuance Costs / Discount |  | Net Carrying Value |  | Limit |  | Weighted Average Interest Rate (1) |  | Final Maturity
Facilities |  |  |  |  |  |  |  |  |  |  |  |
Recourse Subordinate Securities Financing |  |  |  |  |  |  |  |  |  |  |  |
Facility A |  | $ | 130,408 |  |  | $ | — |  |  | $ | 130,408 |  |  | N/A |  | 5.71 | % |  | 9/2024
Facility B |  | 101,706 |  |  | (50) |  |  | 101,656 |  |  | N/A |  | 4.21 | % |  | 2/2025
Facility C |  | 68,995 |  |  | (125) |  |  | 68,870 |  |  | N/A |  | 4.75 | % |  | 6/2026
Non-Recourse BPL Financing |  |  |  |  |  |  |  |  |  |  |  |
Facility D |  | 404,622 |  |  | (667) |  |  | 403,955 |  |  | $ | 750,000 |  |  | SOFR + 2.87% |  | N/A
Facility E |  | 308,933 |  |  | (838) |  |  | 308,095 |  |  | 335,000 |  |  | SOFR + 3.25% |  | 12/2025
Recourse BPL Financing |  |  |  |  |  |  |  |  |  |  |  |
Facility F |  | 64,689 |  |  | (473) |  |  | 64,216 |  |  | 500,000 |  |  | SOFR + 2.25%-2.50% |  | 9/2024
Total Long-Term Debt Facilities |  | 1,079,353 |  |  | (2,153) |  |  | 1,077,200 |  |  |  |  |  |  |
Convertible notes |  |  |  |  |  |  |  |  |  |  |  |
5.625% convertible senior notes |  | 150,200 |  |  | (1,282) |  |  | 148,918 |  |  | N/A |  | 5.625 | % |  | 7/2024
5.75% exchangeable senior notes |  | 162,092 |  |  | (2,410) |  |  | 159,682 |  |  | N/A |  | 5.75 | % |  | 10/2025
7.75% convertible senior notes |  | 215,000 |  |  | (6,142) |  |  | 208,858 |  |  | N/A |  | 7.75 | % |  | 6/2027
Trust preferred securities and subordinated notes |  | 139,500 |  |  | (733) |  |  | 138,767 |  |  | N/A |  | L + 2.25% |  | 7/2037
Total Long-Term Debt |  | $ | 1,746,145 |  |  | $ | (12,720) |  |  | $ | 1,733,425 |  |  |  |  |  |  |
(1)Variable rate borrowings are based on 1- or 3-month LIBOR ("L" in the table above) or SOFR, plus an applicable spread. Refer to Note 16 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2022, for a full description of our long-term debt. The following table below presents the value of loans, securities, and other assets pledged as collateral under our long-term debt at March 31, 2023 and December 31, 2022. Table 16.2 – Collateral for Long-Term Debt
(In Thousands) |  | March 31, 2023 |  | December 31, 2022
Collateral Type |  |  |  |
BPL bridge loans |  | $ | 922,296 |  |  | $ | 897,782 |
BPL term loans |  | — |  |  | 66,567 |
Mortgage servicing rights (including certified MSRs) |  | 73,366 |  |  | — |
Real estate securities |  |  |  |
Sequoia securitizations (1) |  | 181,897 |  |  | 178,439 |
CAFL securitizations (1) |  | 236,540 |  |  | 237,068 |
Total Collateral for Long-Term Debt |  | $ | 1,414,099 |  |  | $ | 1,379,856 |
(1)Represents securities we have retained from consolidated securitization entities. For GAAP purposes, we consolidate the loans and non-recourse ABS debt issued from these securitizations. The following table summarizes the accrued interest payable on long-term debt at March 31, 2023 and December 31, 2022. Table 16.3 – Accrued Interest Payable on Long-Term Debt
(In Thousands) |  | March 31, 2023 |  | December 31, 2022
Long-term debt facilities |  | $ | 3,058 |  |  | $ | 3,364 |
Convertible notes |  |  |  |
5.625% convertible senior notes |  | 1,784 |  |  | 3,896 |
5.75% exchangeable senior notes |  | 4,662 |  |  | 2,332 |
7.75% convertible senior notes |  | 4,906 |  |  | 741 |
Trust preferred securities and subordinated notes |  | 1,659 |  |  | 1,633 |
Total Accrued Interest Payable on Long-Term Debt |  | $ | 16,069 |  |  | $ | 11,966 |
Recourse Subordinate Securities Financing Facilities In 2019, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable (i.e., not subject to margin calls based on the market value of the underlying collateral) recourse debt financing of certain Sequoia securities as well as securities retained from our consolidated Sequoia securitizations (Facility A in Table 16.1 above). The financing is fully and unconditionally guaranteed by Redwood, and had an interest rate of approximately 4.21% through September 2022, which increased to 5.71% from October 2022 through September 2023, and will increase to 7.21% from October 2023 through September 2024. The financing facility has a final maturity in September 2024. In 2020, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable recourse debt financing of certain securities retained from our consolidated CAFL securitizations (Facility B in Table 16.1 above). The financing is fully and unconditionally guaranteed by Redwood, with an interest rate of approximately 4.21% through February 2023, increasing to 5.71% from March 2023 through February 2024, and to 7.21% from March 2024 through February 2025. The financing facility may be terminated, at our option, beginning in February 2023, and has a final maturity in February 2025. In the third quarter of 2021, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable recourse debt financing of certain securities retained from our consolidated CAFL securitizations (Facility C in Table 16.1 above). The financing is guaranteed by Redwood, with an interest rate of approximately 4.75% through June 2024, increasing to 6.25% from July 2024 through June 2025, and to 7.75% from July 2025 to June 2026. The financing facility may be terminated, at our option, beginning in June 2023, and has a final maturity in June 2026. Recourse MSR Financing Facility In the first quarter of 2023, a subsidiary of Redwood entered into a secured revolving debt facility agreement collateralized by MSRs and certificated mortgage servicing rights (Facility G in Table 16.1 above). Borrowings under this facility accrue interest at a per annum rate equal to one-month SOFR plus 3.25% through the maturity of the facility in September 2024. This facility has an aggregate maximum borrowing capacity of $50 million.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration