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Debt Financing (Tables)
 3 Months Ended
Mar. 31, 2022
Debt Financing [Abstract]  
Schedule of Total Debt Financing

The following tables summarize the Partnership’s debt financings, net of deferred financing costs, as of March 31, 2022 and December 31, 2021:

 

 

Outstanding Debt
Financings as of March 31, 2022, net

 

 

Restricted
Cash

 

 

Year
Acquired

 

Stated
Maturities

 

Reset
Frequency

 

Variable Rate Index

 

Index
Based Rates

 

Spread/
Facility Fees

 

Period End
Rates

TEBS Financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed - M24

 

$

21,890,197

 

 

$

4,000

 

 

2010

 

2027

 

N/A

 

N/A

 

N/A

 

N/A

 

3.05%

Variable - M31 (1)

 

 

76,637,387

 

 

 

4,999

 

 

2014

 

2024

 

Weekly

 

SIFMA

 

0.54%

 

1.28%

 

1.82%

Fixed - M33

 

 

30,034,239

 

 

 

2,606

 

 

2015

 

2030

 

N/A

 

N/A

 

N/A

 

N/A

 

3.24%

Fixed - M45 (2)

 

 

213,438,490

 

 

 

5,000

 

 

2018

 

2034

 

N/A

 

N/A

 

N/A

 

N/A

 

3.82%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured Notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable - Notes

 

 

102,722,663

 

 

 

36,256,804

 

 

2020

 

2025

 

Monthly

 

3-month LIBOR

 

0.83%

 

9.00%

 

9.83% (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOB Trust Securitizations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mizuho Capital Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable - TOB

 

 

13,491,156

 

 

(4)

 

 

2020

 

2022

 

Weekly

 

SIFMA

 

0.71%

 

0.89%

 

1.60%

Variable - TOB

 

 

92,087,297

 

 

(4)

 

 

2019 - 2021

 

2023

 

Weekly

 

SIFMA

 

0.71% - 0.73%

 

0.89% - 1.67%

 

1.60% - 2.40%

Variable - TOB

 

 

126,743,565

 

 

(4)

 

 

2020

 

2023

 

Weekly

 

OBFR

 

0.57%

 

0.89%

 

1.46%

Variable - TOB

 

 

188,564,169

 

 

(4)

 

 

2021 - 2022

 

2024

 

Weekly

 

OBFR

 

0.57%

 

0.89% - 1.16%

 

1.46% - 1.73%

Morgan Stanley:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed - Term TOB

 

 

12,894,130

 

 

 

-

 

 

2019

 

2024

 

N/A

 

N/A

 

N/A

 

N/A

 

1.98%

Barclays Capital Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable - TOB

 

 

3,950,371

 

 

 

-

 

 

2021

 

2023

 

Weekly

 

OBFR

 

0.50%

 

1.27%

 

1.77%

Total Debt Financings

 

$

882,453,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(1)
Facility fees have a variable component.
(2)
The M45 TEBS has an initial interest rate of 3.82% through July 31, 2023. From August 1, 2023 through the stated maturity date, the interest rate is 4.39%. These rates are inclusive of credit enhancement fees payable to Freddie Mac.
(3)
The Partnership has entered into a total return swap transaction with the Secured Notes as the reference security and a notional amount totaling the outstanding principal on the Secured Notes. The total return swap effectively nets down the interest rate on the Secured Notes. Considering the effect of the total return swap, the effective net interest rate is 4.58% for approximately $103.0 million of the Secured Notes as of March 31, 2022. See Note 17 for further information on the total return swap.
(4)
The Partnership has restricted cash totaling approximately $2.1 million related its total net position with Mizuho Capital Markets.

 

 

 

Outstanding Debt
Financings as of December 31, 2021, net

 

 

Restricted
Cash

 

 

Year
Acquired

 

Stated
Maturities

 

Reset
Frequency

 

Variable Rate Index

 

Index
Based Rates

 

Spread/
Facility Fees

 

Period End
Rates

TEBS Financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed - M24

 

$

35,551,762

 

 

$

204,000

 

 

2010

 

2027

 

N/A

 

N/A

 

N/A

 

N/A

 

3.05%

Variable - M31 (1)

 

 

76,964,051

 

 

 

4,999

 

 

2014

 

2024

 

Weekly

 

SIFMA

 

0.13%

 

1.32%

 

1.45%

Fixed - M33

 

 

30,191,051

 

 

 

2,606

 

 

2015

 

2030

 

N/A

 

N/A

 

N/A

 

N/A

 

3.24%

Fixed - M45 (2)

 

 

213,931,752

 

 

 

5,000

 

 

2018

 

2034

 

N/A

 

N/A

 

N/A

 

N/A

 

3.82%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured Notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable - Notes

 

 

102,798,158

 

 

 

77,531,264

 

 

2020

 

2025

 

Monthly

 

3-month LIBOR

 

0.20%

 

9.00%

 

9.20% (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOB Trust Securitizations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mizuho Capital Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable - TOB

 

 

13,482,312

 

 

 

-

 

 

2020

 

2022

 

Weekly

 

SIFMA

 

0.23%

 

0.89%

 

1.12%

Variable - TOB

 

 

117,257,933

 

 

 

-

 

 

2019 - 2021

 

2023

 

Weekly

 

SIFMA

 

0.23% - 0.30%

 

1.17% - 1.67%

 

1.40% - 1.97%

Variable - TOB

 

 

115,143,312

 

 

 

-

 

 

2020

 

2023

 

Weekly

 

OBFR

 

0.18%

 

0.89%

 

1.07%

Variable - TOB

 

 

98,703,495

 

 

 

-

 

 

2021

 

2024

 

Weekly

 

OBFR

 

0.18%

 

0.89% - 1.16%

 

1.07% - 1.34%

Morgan Stanley:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed - Term TOB

 

 

12,915,190

 

 

 

-

 

 

2019

 

2024

 

N/A

 

N/A

 

N/A

 

N/A

 

1.98%

Barclays Capital Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable - TOB

 

 

3,139,698

 

 

 

-

 

 

2021

 

2022

 

Weekly

 

OBFR

 

0.14%

 

1.27%

 

1.41%

Total Debt Financings

 

$

820,078,714

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(1)
Facility fees have a variable component.
(2)
The M45 TEBS has an initial interest rate of 3.82% through July 31, 2023. From August 1, 2023 through the stated maturity date, the interest rate is 4.39%. These rates are inclusive of credit enhancement fees payable to Freddie Mac.
(3)
The Partnership has entered into two total return swap transactions with the Secured Notes as the reference security and notional amounts totaling the outstanding principal on the Secured Notes. The total return swaps effectively net down the interest rate on the Secured Notes. Considering the effect of the total return swaps, the effective net interest rate is 4.25% for approximately $39.6 million of the Secured Notes and 1.00% for approximately $63.5 million of the Secured Notes as of December 31, 2021. See Note 17 for further information on the total return swaps.
Summary of TOB Trust Financings

The following is a summary of the TOB trust financings that were entered into during the three months ended March 31, 2022:

 

TOB Trusts Securitization

 

Initial TOB
Trust Financing

 

 

Stated Maturity

 

Reset
Frequency

 

Variable Rate Index

 

Facility Fees

Live 929 Series 2022A & 2022B MRBs

 

$

55,990,000

 

 

February 2024

 

Weekly

 

OBFR

 

1.15%

Total TOB Trust Financings

 

$

55,990,000

 

 

 

 

 

 

 

 

 

The following is a summary of the TOB trust financings that were entered into during the three months ended March 31, 2021:

 

TOB Trusts Securitization

 

Initial TOB
Trust Financing (1)

 

 

Stated Maturity

 

Reset
Frequency

 

Variable Rate Index

 

Facility Fees

TOB Trust 2021-XF2926 (2)

 

$

16,190,000

 

 

January 2024

 

Weekly

 

OBFR

 

0.89%

Hope on Avalon GIL

 

 

5,064,000

 

 

February 2023

 

Weekly

 

SIFMA

 

1.42%

Hope on Broadway GIL

 

 

2,953,000

 

 

February 2023

 

Weekly

 

SIFMA

 

1.42%

Total TOB Trust Financings

 

$

24,207,000

 

 

 

 

 

 

 

 

 
(1)
Amounts shown are the initial funding into the respective TOB trusts. The balances will increase based upon subsequent fundings of the related securitized assets and the current outstanding balances are contained in the summarized debt financing table above.
(2)
The TOB trust is securitized by the Legacy Commons at Signal Hills GIL and property loan, Hilltop at Signal Hills GIL and property loan, Oasis at Twin Lakes property loan and Hope on Avalon taxable GIL.
Summary of the TOB Trust Financings and Debt Financing Facilities Collapsed and Paid Off or Redeemed

The following is a summary of the TOB trust financings that were collapsed and all principal and interest were paid in full during the three months ended March 31, 2022:

 

Debt Financing

 

Debt Facility

 

Month

 

Paydown Applied

 

Live 929 Apartments - 2014 Series A

 

TOB Trust

 

January 2022

 

$

31,565,000

 
Schedule of Contractual Maturities of Borrowings

The Partnership’s contractual maturities of borrowings as of March 31, 2022 for the twelve-month periods ending December 31st for the next five years and thereafter are as follows:

 

Remainder of 2022

 

$

18,078,722

 

2023

 

 

228,172,815

 

2024

 

 

290,148,152

 

2025

 

 

112,504,344

 

2026

 

 

4,023,863

 

Thereafter

 

 

232,646,017

 

Total

 

 

885,573,913

 

Unamortized deferred financing costs and debt premium

 

 

(3,120,249

)

Total debt financing, net

 

$

882,453,664