Debt, net

The following table presents the balance of the Company’s debt obligations, net of discounts and deferred financing costs.



		Stated interest rate or range of rates	Maximum borrowing capacity as of		As of December 31,
Debt Type	Stated maturity date	Stated interest rate or range of rates	December 31, 2019		December 31, 2019			December 31, 2018
Corporate debt
Secured corporate credit agreements	April 2020 - September 2020	LIBOR + 1.20% to 5.50%	$	143,210	$	93,210		$	72,090
Junior subordinated notes	October 2057	8.50%	125,000		125,000			125,000
Preferred trust securities	June 2037	LIBOR + 4.10%	35,000		35,000			35,000
Total corporate debt					253,210			232,090
Asset based debt ⁽¹⁾
Asset based revolving financing ⁽²⁾	April 2021	LIBOR + 2.40%	40,000		21,576			86,092
Residential mortgage warehouse borrowings ⁽³⁾	May 2020 - August 2020	LIBOR + 2.00% to 2.50%	111,000		90,673			46,091
Vessel backed term loan	November 2024	LIBOR + 4.75%	18,000		18,000			—
Total asset based debt					130,249			132,183
Total debt, face value					383,459			364,273
Unamortized discount, net					(198		)	(504		)
Unamortized deferred financing costs					(8,807		)	(9,686		)
Total debt, net					$	374,454		$	354,083


⁽¹⁾	Asset based debt is generally recourse only to specific assets and related cash flows.


⁽²⁾	The weighted average coupon rate for asset based revolving financing was 4.16% and 4.30% at December 31, 2019 and December 31, 2018, respectively.


⁽³⁾	The weighted average coupon rate for residential mortgage warehouse borrowings was 3.83% and 4.66% at December 31, 2019 and December 31, 2018, respectively.

The following table presents the amount of interest expense the Company incurred on its debt for the following periods:



	Year Ended December 31,
	2019		2018		2017
Interest expense - corporate debt	$	19,682	$	18,162	$	12,838
Interest expense - asset based debt	7,377		8,851		12,759
Interest expense on debt	$	27,059	$	27,013	$	25,597

The following table presents the future maturities of the unpaid principal balance on the Company’s debt for the following period:



	As of
	December 31, 2019
2020	$	183,883
2021	21,576
2022	—
2023	—
2024	18,000
2025 and thereafter	160,000
Total	$	383,459

The following narrative is a summary of certain terms of our debt agreements for the period ended December 31, 2019:

Corporate Debt

Secured Corporate Credit Agreements

On May 4, 2018, the Company entered into a Fifth Amendment to the Credit Agreement with Fortress providing for an additional $47,000 borrowing for a total principal amount outstanding of $75,000 as of the borrowing date. The Fifth Amendment extends the maturity date of all term loans under the Credit Agreement from September 18, 2018 to September 18, 2020. The amended facility also has a new interest rate at a variable rate equal to one-month LIBOR with a LIBOR floor of 1.25%, plus a margin of 5.50% per annum. As of December 31, 2019 and December 31, 2018, a total of $68,210 and $72,090, respectively, was outstanding under the Operating Company credit agreement.

On December 21, 2017, a subsidiary in our insurance business entered into a $30,000 revolving line of credit which bears interest at a rate equal to LIBOR rate plus 1.00% and has a $30,000 accordion feature. The facility is secured by substantially all the assets of the subsidiary and had an original maturity date of December 20, 2018, which was renewed with a new maturity date of April 28, 2019. During April 2019, the maturity date of this borrowing was extended to April 2020 with a new rate of LIBOR plus 1.20%. On December 31, 2019, the borrowing was amended to increase the revolving credit exposure to $75,000 with a sublimit of $30,000 of revolving loans and requiring that any revolving loans in excess of $30,000 be cash collateralized. As of December 31, 2019 and December 31, 2018, a total of $25,000 and $0, respectively, was outstanding under this facility.

Junior Subordinated Notes

On October 16, 2017, a subsidiary in our insurance business issued $125,000 of 8.50% Fixed Rate Resetting Junior Subordinated Notes due October 2057. Substantially all of the net proceeds were used to repay the existing secured credit agreement, which was terminated thereafter. The notes are unsecured obligations of the subsidiary and rank in right of payment and upon liquidation, junior to all of the subsidiary’s current and future senior indebtedness. The notes are not obligations of or guaranteed by any subsidiaries of the subsidiary, or any other Tiptree entities. So long as no event of default has occurred and is continuing, all or part of the interest payments on the notes can be deferred on one or more occasions for up to five consecutive years per deferral period. This credit agreement contains customary financial covenants that require, among other items, maximum leverage and limitations on restricted payments under certain circumstances.

Preferred Trust Securities

A subsidiary in our insurance business has $35,000 of preferred trust securities due June 15, 2037. Interest is payable quarterly at an interest rate of LIBOR plus 4.10%. The Company may redeem the preferred trust securities, in whole or in part, at a price equal to the full outstanding principal amount of such preferred trust securities outstanding plus accrued and unpaid interest.

Asset Based Debt

Asset Backed Revolving Financing

As of December 31, 2019 and December 31, 2018, a total of $9,840 and $4,749, respectively, was outstanding under the borrowing related to our premium finance business in our insurance business. During April 2019, the maturity date of this borrowing was extended to April 2021 with a new rate of LIBOR plus 2.40%. On December 30, 2019, the maximum borrowing capacity of this borrowing was reduced from $25,000 to $13,000.

On August 5, 2019, a subsidiary in our insurance business entered into a $15,000 revolving line of credit agreement related to our warranty service contract finance business. The borrowing has a maturity date of April 28, 2021 and a rate of LIBOR plus 2.40%. On December 30, 2019, the maximum borrowing capacity of this borrowing was increased from $15,000 to $27,000. As of December 31, 2019, a total of $11,736 was outstanding under the borrowing.

The $81,343 balance as of December 31, 2018 of the corporate loan financing agreement in our insurance business was paid off and the borrowing was extinguished in March 2019.

Residential Mortgage Warehouse Borrowings

The Company, through a subsidiary in its mortgage business has three warehouse borrowings with a total borrowing capacity

at December 31, 2019 of $111,000. Such warehouse facilities are recourse to the assets of the subsidiary and are secured by liens on cash escrow and the loans held for sale in the warehouse. These credit agreements contain customary financial covenants that require, among other items, minimum amounts of tangible net worth, profitability, maximum indebtedness ratios, and minimum liquid assets. As of December 31, 2019 and December 31, 2018, a total of $90,673 and $46,091, respectively, was outstanding under such financing agreements.

Vessel Backed Term Loan

On November 28, 2019, subsidiaries in our shipping business entered into a $18,000 term loan facility. Amounts borrowed under the facility are not allowed to be reborrowed. The borrowing has a maturity date of November 28, 2024 and a rate of LIBOR plus 4.75%, with quarterly principal payments of $550. This facility is secured by liens on two of our vessels as well as the assets of the borrowing entities and their parent guarantor. This credit agreement contains customary financial covenants that require, among other items, minimum liquidity, positive working capital, minimum required security coverage ratio of 150%, and the existence of a maintenance reserve account funded on a quarterly basis prior to anticipated scheduled drydocking costs. As of December 31, 2019, a total of $18,000 was outstanding under the borrowing.

As of December 31, 2019, the Company is in compliance with the representations and covenants for outstanding borrowings or has obtained waivers for any events of non-compliance.