6. LOAN PARTICIPATIONS SOLD

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 gross presentation of loan participations sold does not impact stockholders’ equity or net income.

During the nine months ended September 30, 2015, we sold one senior loan participation, providing an additional $256.0 million of credit capacity. The following table details statistics for our loan participations sold ($ in thousands):


	September 30, 2015						December 31, 2014
	Participations			Underlying			Participations			Underlying
	Sold⁽²⁾			Loans			Sold⁽²⁾			Loans
Number of loans		3			3			4			4
Principal balance	$	507,200		$	618,470		$	499,433		$	635,701
Weighted-average cash coupon⁽¹⁾		L+2.38	%		L+3.93	%		L+2.51	%		L+4.10	%
Weighted-average all-in cost / yield⁽¹⁾		L+2.49	%		L+4.15	%		L+2.71	%		L+4.71	%

(1)

Our floating rate loans and related liabilities were indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, all-in cost / yield includes the amortization of deferred origination fees / financing costs.

(2)	During the three and nine months ended September 30, 2015, we recorded $5.2 million and $14.4 million, respectively, of interest expense related to our loan participations sold, compared to $4.2 million and $8.1 million for the same periods in 2014.