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Secured Debt Agreements, Net (Tables)
6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
Schedule of Secured Debt Agreements

 The following table details our secured debt agreements ($ in thousands):

 

     Secured Debt Agreements  
     Borrowings Outstanding  
     June 30, 2017      December 31, 2016  

Credit facilities

   $ 4,014,582      $ 3,572,837  

GE portfolio acquisition facility

     1,188,076        1,479,582  

Asset-specific financings

     530,358        679,207  

Revolving credit agreement

     90,750        —    
  

 

 

    

 

 

 

Total secured debt agreements

   $ 5,823,766      $ 5,731,626  
  

 

 

    

 

 

 

Deferred financing costs(1)

     (17,729      (15,272
  

 

 

    

 

 

 

Net book value of secured debt

   $ 5,806,037      $ 5,716,354  
  

 

 

    

 

 

 

 

(1)  

 

Costs incurred in connection with our secured debt agreements are recorded on our consolidated balance sheet when incurred and recognized as a component of interest expense over the life of each related agreement.

Credit Facilities

The following tables detail our credit facilities ($ in thousands):

 

     June 30, 2017  
     Maximum      Collateral      Credit Borrowings  

Lender

   Facility Size(1)      Assets(2)      Potential(3)      Outstanding      Available(3)  

Wells Fargo

   $ 2,000,000      $ 1,993,129      $ 1,548,713      $ 1,232,179      $ 316,534  

MetLife

     1,000,000        1,013,172        795,207        795,207        —    

Bank of America

     750,000        816,218        641,066        641,066        —    

Société Générale(4)

     457,040        456,849        354,959        348,486        6,473  

Deutsche Bank

     500,000        377,634        284,174        284,174        —    

Citibank(5)

     785,650        394,783        307,201        258,450        48,751  

Morgan Stanley(6)

     651,250        411,350        321,848        254,345        67,503  

JP Morgan(7)

     500,000        324,873        248,788        200,675        48,113  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $     6,643,940      $     5,788,008      $     4,501,956      $     4,014,582      $     487,374  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     December 31, 2016  
     Maximum      Collateral      Credit Borrowings  

Lender

   Facility Size(1)      Assets(2)      Potential(3)      Outstanding      Available(3)  

Wells Fargo

   $ 2,000,000      $ 1,718,874      $ 1,339,942      $ 1,107,733      $ 232,209  

MetLife

     1,000,000        1,106,017        862,454        862,454        —    

Bank of America

     750,000        794,881        617,694        617,694        —    

JP Morgan(7)

     500,000        550,560        420,414        316,219        104,195  

Morgan Stanley(6)

     308,500        344,056        272,221        231,930        40,291  

Citibank(5)

     500,000        508,989        394,677        229,629        165,048  

Société Générale(4)

     420,680        274,351        207,178        207,178        —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $ 5,479,180      $ 5,297,728      $ 4,114,580      $ 3,572,837      $ 541,743  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  

 

Maximum facility size represents the largest amount of borrowings available under a given facility once sufficient collateral assets have been approved by the lender and pledged by us.

(2)

 

Represents the principal balance of the collateral assets.

(3)

 

Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each credit facility.

(4)

 

As of June 30, 2017 and December 31, 2016, the Société Générale maximum facility size was composed of a €400.0 million facility size that was translated to $457.0 million and $420.7 million, respectively. Borrowings denominated in U.S. Dollars, British Pound Sterling, and Euro are contemplated under this facility.

(5)

 

As of June 30, 2017, the Citibank maximum facility size was composed of a general $500.0 million facility size denominated in U.S. Dollars plus a general €250.0 million ($285.7 million) facility size that contemplated British Pound Sterling and Euro borrowings. As of December 31, 2016, the maximum facility size was composed of a general $500.0 million facility.

(6)

 

As of June 30, 2017, the Morgan Stanley maximum facility size was composed of a £500.0 million facility size that was translated to $651.3 million. As of December 31, 2016, the maximum facility size was composed of a £250.0 million facility size that was translated to $308.5 million. Borrowings denominated in U.S. Dollars, British Pound Sterling, and Euro are contemplated under this facility.

(7)

 

As of June 30, 2017 and December 31, 2016, the JP Morgan maximum facility size was composed of a general $500.0 million facility size, under which U.S. Dollars and British Pound Sterling borrowings are contemplated.

Summary of Key Terms of Credit Facilities

The following tables outline the key terms of our credit facilities as of June 30, 2017:

 

Lender

   Currency   Guarantee(1)   Margin Call(2)    Term/Maturity

Wells Fargo

   $   25%   Collateral marks only    Term matched(3)

MetLife

   $   50%   Collateral marks only    April 21, 2023(4)

Bank of America

   $   50%   Collateral marks only    May 21, 2021(5)

Société Générale

   $ / £ / €   25%   Collateral marks only    Term matched(3)

Deutsche Bank

   $   25%   Collateral marks only    Term matched(3)

Citibank

   $ / £ / €   25%   Collateral marks only    Term matched(3)

Morgan Stanley

   $ / £ / €   25%   Collateral marks only    March 3, 2020

JP Morgan

   $ / £   50%   Collateral marks only    January 7, 2020

 

(1)  

 

Other than amounts guaranteed based on specific collateral asset types, borrowings under our credit facilities are non-recourse to us.

(2)

 

Margin call provisions under our credit facilities do not permit valuation adjustments based on capital markets events, and are limited to collateral-specific credit marks.

(3)

 

These credit facilities have various availability periods during which new advances can be made and which are generally subject to each lender’s discretion. Maturity dates for advances outstanding are tied to the term of each respective collateral asset.

(4)

 

Includes five one-year extension options which may be exercised at our sole discretion.

(5)

 

Includes two one-year extension options which may be exercised at our sole discretion.

 

Currency

   Outstanding
Borrowings
     Potential
Borrowings(1)
    

                     Index                    

  

Rate(2)

   Advance
Rate(3)
$      $  3,684,398        $  4,103,296      1-month USD LIBOR    L+1.88%    78.8%
     €            —          €       38,227      3-month EURIBOR    n/a    77.8%
£      £     253,500        £     273,451      3-month GBP LIBOR    L+2.15%    79.0%
  

 

 

    

 

 

       

 

  

 

     $  4,014,582        $  4,501,956         L+1.90%    78.8%

 

(1)  

 

Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each credit facility.

(2)

 

Represents weighted-average cash coupon based on borrowings outstanding.

(3)

 

Represents weighted-average advance rate based on the outstanding principal balance of the collateral assets pledged.

Summary of Asset-Specific Financings

The following tables detail our asset-specific financings ($ in thousands):

 

    

June 30, 2017

 

Asset-Specific Financings

  

Count

   Principal
Balance
     Book
Value
     Wtd. Avg.
Yield/Cost(1)
    Guarantee(2)      Wtd. Avg.
Term(3)
 

Collateral assets

   5    $   675,639      $   672,295        L+4.71     n/a        Nov. 2020  

Financing provided(4)

   5    $ 530,358      $ 529,350        L+2.48   $ 167,124        Nov. 2020  

 

(1)  

 

These floating rate loans and related liabilities are 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, yield/cost includes the amortization of deferred origination fees / financing costs.

(2)

 

Other than amounts guaranteed on an asset-by-asset basis, borrowings under our asset-specific financings are non-recourse to us.

(3)

 

The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all extension options are exercised by the borrower. Each of our asset-specific financings are term-matched to the corresponding collateral loans.

(4)

 

Borrowings of $394.8 million under these asset specific financings are cross collateralized with related credit facilities with the same lenders.

 

    

December 31, 2016

 

Asset-Specific Financings

  

Count

   Principal
Balance
     Book
Value
     Wtd. Avg.
Yield/Cost(1)
    Guarantee(2)      Wtd. Avg.
Term(3)
 

Collateral assets

   7    $   876,083      $   869,417        L+4.84     n/a        Aug. 2020  

Financing provided(4)

   7    $ 679,207      $ 676,333        L+2.60   $ 231,585        Aug. 2020  

 

(1)  

 

These floating rate loans and related liabilities are 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, yield/cost includes the amortization of deferred origination fees / financing costs.

(2)

 

Other than amounts guaranteed on an asset-by-asset basis, borrowings under our asset-specific financings are non-recourse to us.

(3)

 

The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all extension options are exercised by the borrower. Each of our asset-specific financings are term-matched to the corresponding collateral loans.

(4)

 

Borrowings of $392.3 million under these asset specific financings are cross collateralized with related credit facilities with the same lenders.