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Secured Debt, Net
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Secured Debt, Net SECURED DEBT, NET
Our secured debt includes our secured credit facilities and our acquisition facility. During the year ended December 31, 2023, we obtained approval for $112.1 million of new borrowings against $141.9 million of collateral assets. During the year ended December 31, 2022, we obtained approval for $4.6 billion of new borrowings against $5.9 billion of collateral assets. The following table details our secured debt ($ in thousands):
 
Secured Debt
Borrowings Outstanding
 December 31, 2023December 31, 2022
Secured credit facilities$12,697,058 $13,549,748 
Acquisition facility——
Total secured debt$12,697,058 $13,549,748 
Deferred financing costs(1)
(13,963)(21,584)
Net book value of secured debt$12,683,095 $13,528,164 
(1)Costs incurred in connection with our secured debt are recorded on our consolidated balance sheets when incurred and recognized as a component of interest expense over the life of each related facility.
Secured Credit Facilities

Our secured credit facilities are bilateral agreements we use to finance diversified pools of senior loan collateral with sufficient flexibility to accommodate our investment and asset management strategy. The facilities are uniformly structured to provide currency, index, and term-matched financing without capital markets based mark-to-market provisions. Our credit facilities are diversified across 15 counterparties, primarily consisting of top global financial institutions to minimize our counterparty risk exposure.
The following table details our secured credit facilities by spread over the applicable base rates as of December 31, 2023 ($ in thousands):

December 31, 2023
     Recourse Limitation
Currency
Lenders(1)
Borrowings
Wtd. Avg. Maturity(2)
Loan Count
Collateral(3)
Wtd. Avg.
Maturity(4)
Wtd. Avg.Range
USD14$6,643,853 June 2026125$10,584,023 June 202635%
25% - 100%
GBP72,337,852 June 2026193,143,684 August 202627%
25% - 50%
EUR72,068,449 September 2025112,786,896 September 202541%
25% - 100%
Others(5)
41,646,904 July 202772,079,715 July 202725%
25%
Total15$12,697,058 June 2026162$18,594,318 June 202633%
25% - 100%
(1)Represents the number of lenders with fundings advanced in each respective currency, as well as the total number of facility lenders.
(2)Our secured debt agreements are generally term-matched to their underlying collateral. Therefore, the weighted-average maturity is generally allocated based on the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. In limited instances, the maturity date of the respective secured credit facility is used.
(3)Represents the principal balance of the collateral assets.
(4)Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date.
(5)Includes Australian Dollar, Danish Krone, Swedish Krona, and Swiss Franc currencies.

The availability of funding under our secured credit facilities is based on the amount of approved collateral, which collateral is proposed by us in our discretion and approved by the respective counterparty in its discretion, resulting in a mutually agreed collateral portfolio construction. Certain structural elements of our secured credit facilities, including the
limitation on recourse to us and facility economics, are influenced by the specific collateral portfolio construction of each facility, and therefore vary within and among the facilities.

The following tables detail the spread of our secured debt as of December 31, 2023 and 2022 ($ in thousands):
 Year Ended December 31, 2023December 31, 2023
Spread(1)
New Financings(2)
Total
Borrowings
Wtd. Avg.
All-in Cost(1)(3)(4)
Collateral(5)
Wtd. Avg.
All-in Yield(1)(3)
Net Interest
 Margin(6)
+ 1.50% or less $— $5,647,848 +1.53 %$8,341,383 +3.24 %+1.71 %
+ 1.51% to + 1.75%— 2,679,699 +1.82 %3,723,365 +3.49 %+1.67 %
+ 1.76% to + 2.00%42,908 1,850,809 +2.11 %2,913,067 +3.92 %+1.81 %
+ 2.01% or more70,8452,518,702 +2.64 %3,616,503 +4.30 %+1.66 %
Total$113,753 $12,697,058 +1.89 %$18,594,318 +3.58 %+1.69 %
 Year Ended December 31, 2022December 31, 2022
Spread(1)
New Financings(2)
Total
Borrowings
Wtd. Avg.
All-in Cost(1)(3)(4)
Collateral(5)
Wtd. Avg.
All-in Yield(1)(3)
Net Interest
Margin(6)
+ 1.50% or less$1,329,508 $7,433,204 +1.53 %$10,465,647 +3.24 %+1.71 %
+ 1.51% to + 1.75%368,2652,246,223+1.88 %3,538,815+3.73 %+1.85 %
+ 1.76% to + 2.00%405,7231,514,541+2.16 %2,483,240+4.14 %+1.98 %
+ 2.01% or more1,246,6502,355,780+2.63 %3,207,088+4.78 %+2.15 %
Total$3,350,146 $13,549,748 +1.85 %$19,694,790 +3.70 %+1.85 %
(1)The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include SOFR, USD LIBOR, SONIA, EURIBOR, and other indices as applicable.
(2)Represents borrowings outstanding as of December 31, 2023 and 2022 for new financings closed during the year ended December 31, 2023 and year ended December 31, 2022, respectively.
(3)In addition to spread, the cost includes the associated deferred fees and expenses related to the respective borrowings. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. All-in yield excludes loans accounted for under the cost-recovery method.
(4)Represents the weighted-average all-in cost as of December 31, 2023 and 2022, respectively, and is not necessarily indicative of the spread applicable to recent or future borrowings.
(5)Represents the principal balance of the collateral assets.
(6)Represents the difference between the weighted-average all-in yield and weighted-average all-in cost.
Our secured credit facilities generally permit us to increase or decrease the amount advanced against the pledged collateral in our discretion within certain maximum/minimum amounts and frequency limitations. As of December 31, 2023, there was an aggregate $1.3 billion available to be drawn at our discretion under our credit facilities.
Acquisition Facility
We have a $100.0 million full recourse secured credit facility that is designed to finance eligible first mortgage originations for up to nine months as a bridge to term financing without obtaining discretionary lender approval. The cost of borrowing under the facility is variable, dependent on the type of loan collateral, and its maturity date is April 3, 2024.
During the year ended December 31, 2023, we had no borrowings under the acquisition facility and we recorded interest expense of $722,000, including $233,000 of amortization of deferred fees and expenses.
During the year ended December 31, 2022, we had no borrowings under the acquisition facility and we recorded interest expense of $1.2 million, including $333,000 of amortization of deferred fees and expenses.
Financial Covenants
We are subject to the following financial covenants related to our secured debt: (i) our ratio of earnings before interest, taxes, depreciation, and amortization, or EBITDA, to fixed charges, as defined in the agreements, shall be not less than 1.4 to 1.0; (ii) our tangible net worth, as defined in the agreements, shall not be less than $3.6 billion as of each measurement date plus 75% to 85% of the net cash proceeds of future equity issuances subsequent to December 31, 2023; (iii) cash liquidity shall not be less than the greater of (x) $10.0 million or (y) no more than 5% of our recourse indebtedness; and (iv) our indebtedness shall not exceed 83.33% of our total assets. As of December 31, 2023 and 2022, we were in compliance with these covenants.