XML 33 R23.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Debt | 3 Months Ended
--- | ---
Mar. 31, 2018
Debt Disclosure [Abstract] |
Debt | Residential Collateralized Debt Obligations The Company’s Residential CDOs, which are recorded as liabilities on the Company’s condensed consolidated balance sheets, are secured by ARM loans pledged as collateral, which are recorded as assets of the Company. As of March 31, 2018 and December 31, 2017, the Company had Residential CDOs outstanding of $67.2 million and $70.3 million, respectively. As of March 31, 2018 and December 31, 2017, the current weighted average interest rate on these Residential CDOs was 2.48% and 2.16%, respectively. The Residential CDOs are collateralized by ARM loans with a principal balance of $74.5 million and $77.5 million at March 31, 2018 and December 31, 2017, respectively. The Company retained the owner trust certificates, or residual interest, for three securitizations, and, as of March 31, 2018 and December 31, 2017, had a net investment in the residential securitization trusts of $4.6 million and $4.4 million, respectively. Debt Convertible Notes On January 23, 2017, the Company issued $138.0 million aggregate principal amount of its 6.25% Senior Convertible Notes due 2022, including $18.0 million aggregate principal amount of the Convertible Notes issued upon exercise of the underwriter's over-allotment option, in an underwritten public offering. The net proceeds to the Company from the sale of the Convertible Notes, after deducting the underwriter's discounts, commissions and offering expenses, were approximately $127.0 million with the total cost to the Company of approximately 8.24%. The Convertible Notes were issued at 96% of the principal amount, bear interest at a rate equal to 6.25% per year, payable semi-annually in arrears on January 15 and July 15 of each year, and are expected to mature on January 15, 2022, unless earlier converted or repurchased. The Company does not have the right to redeem the Convertible Notes prior to maturity and no sinking fund is provided for the Convertible Notes. Holders of the Convertible Notes will be permitted to convert their Convertible Notes into shares of the Company's common stock at any time prior to the close of business on the business day immediately preceding January 15, 2022. The conversion rate for the Convertible Notes, which is subject to adjustment upon the occurrence of certain specified events, initially equals 142.7144 shares of the Company’s common stock per $1,000 principal amount of Convertible Notes, which is equivalent to a conversion price of approximately $7.01 per share of the Company’s common stock, based on a $1,000 principal amount of the Convertible Notes. The Convertible Notes are senior unsecured obligations of the Company that rank senior in right of payment to the Company's subordinated debentures and any of its other indebtedness that is expressly subordinated in right of payment to the Convertible Notes. During the three months ended March 31, 2018, none of the Convertible Notes were converted. As of May 8, 2018, the Company has not been notified, and is not aware, of any event of default under the covenants for the Convertible Notes. Subordinated Debentures Subordinated debentures are trust preferred securities that are fully guaranteed by the Company with respect to distributions and amounts payable upon liquidation, redemption or repayment. The following table summarizes the key details of the Company’s subordinated debentures as of March 31, 2018 and December 31, 2017 (dollar amounts in thousands):
| NYM Preferred Trust I |  | NYM Preferred Trust II
Principal value of trust preferred securities | $ | 25,000 |  |  | $ | 20,000 |
Interest rate | Three month LIBOR plus 3.75%, resetting quarterly |  |  | Three month LIBOR plus 3.95%, resetting quarterly |
Scheduled maturity | March 30, 2035 |  |  | October 30, 2035 |
As of May 8, 2018, the Company has not been notified, and is not aware, of any event of default under the covenants for the subordinated debentures. Mortgages and Notes Payable in Consolidated VIEs On March 31, 2017, the Company consolidated both Riverchase Landing and The Clusters into its condensed consolidated financial statements (s ee Note 10). In March 2018, Riverchase Landing completed the sale of its multi-family apartment community and redeemed the Company's preferred equity investment. The Company deconsolidated Riverchase Landing as of the date of the sale. The Clusters' real estate investment is subject to a mortgage payable and the Company has no obligation for this liability as of March 31, 2018. The Company also consolidates KRVI into its condensed consolidated financial statements (see Note 10). KRVI's real estate under development is subject to a note payable of $4.5 million that has an unused commitment of $3.9 million as of March 31, 2018. The Company has not been notified, and is not aware, of any event of default under the covenants of KRVI's note payable as of May 8, 2018. The mortgages and notes payable in the consolidated VIEs are described below (dollar amounts in thousands):
|  | Assumption/Origination Date |  | Mortgage Note Amount as of March 31, 2018 |  | Maturity Date |  | Interest Rate |  | Net Deferred Finance Costs
The Clusters |  | 6/30/2014 |  | $ | 27,662 |  |  | 7/6/2024 |  | 4.49 | % |  | $ | 63 |
KRVI |  | 12/16/2016 |  | $ | 4,473 |  |  | 12/16/2019 |  | 6.25 | % |  | $ | — |
As of March 31, 2018, maturities for debt on the Company's condensed consolidated balance sheet are as follows (dollar amounts in thousands):
Fiscal Year | Total
2018 | $ | — |
2019 | 4,473 |
2020 | — |
2021 | — |
2022 | 138,000 |
2023 | — |
Thereafter | 72,662 |
| $ | 215,135 |

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 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
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration