Loan Participations Sold, Net

3 Months Ended

Mar. 31, 2022

LOAN PARTICIPATIONS SOLD, NET

The financing of a loan by the non-recourse sale of a senior interest in the loan through a participation agreement generally does not qualify as a sale under GAAP. Therefore, in the instance of such sales, we present the whole loan as an asset and the loan participation sold as a liability on our consolidated balance sheet until the loan is repaid. The obligation to pay principal and interest on these liabilities is generally based on the performance of the related loan obligation. The gross presentation of loan participations sold does not impact stockholders’ equity or net income.

The following tables detail our loan participations sold ($ in thousands):


	March 31, 2022
Loan Participations Sold		Count	Principal Balance		Book Value		Wtd. Avg. Yield/Cost(1)		Term(2)
Total Loan		1	$	305,459	$	302,423	+ 4.86	%	March 2027
Senior Participation		1	$	244,367	$	243,760	+ 3.20	%	March 2027

(1)The loan and related participation sold is indexed to SONIA. This non-debt participation sold structure is inherently matched in terms of currency and interest rate. In addition to cash coupon, yield/cost includes the amortization of deferred fees / financing costs.

(2)The term is determined based on the on maximum maturity of the loan, assuming all extension options are exercised by the borrower.

We did not have any loan participations sold as of December 31, 2021.