Quarterly report pursuant to Section 13 or 15(d)

Other Financing Lines of Credit (Tables)

v3.21.2
Other Financing Lines of Credit (Tables)
6 Months Ended
Jun. 30, 2021
Other Financing Lines Of Credit [Abstract]  
Summary of components of other financing lines of credit
The following summarizes the components of other financing lines of credit (dollars in thousands):    
 
 
  
 
  
 
 
 
  
 
 
  
Outstanding Borrowings at
 
 
  
 
  
 
 
 
  
 
 
  
June 30,
2021
 
 
  
  
December 31,
2020
 
Facility
  
Maturity Date
  
Interest Rate
 
Collateral
Pledged
  
Total
Capacity
(1)
 
  
Successor
 
 
 
  
Predecessor
 
Mortgage Lines:
  
  
 
  
  
 
 
  
March 2022 $300M Facility
   March 2022    LIBOR + applicable margin   First Lien Mortgages    $ 300,000     
$
192,417
   
 
   $ 182,015  
March 2022 $200M Facility
   March 2022    LIBOR + applicable margin   N/A      200,000     
 
189,464
   
 
     302,877  
May 2022 $200M Facility
   May 2022    LIBOR + applicable margin   First Lien Mortgages      200,000     
 
189,050
   
 
     109,463  
February 2022 $300M Facility
   February 2022    LIBOR + applicable margin   First Lien Mortgages      300,000     
 
186,754
   
 
     —    
July 2021 $200M Facility
(2)
   July 2021    LIBOR + applicable margin   First Lien Mortgages      200,000     
 
167,207
   
 
     122,075  
October 2021 $200M Facility
   October 2021    LIBOR + applicable margin   First Lien Mortgages      200,000     
 
166,564
   
 
     158,114  
March 2022 $225M Facility
   March 2022    LIBOR + applicable margin   First Lien Mortgages      225,000     
 
163,678
   
 
     154,097  
March 2022 $200M Facility
   March 2022    LIBOR + applicable margin   First Lien Mortgages      200,000     
 
155,468
   
 
     97,225  
March 2026 $150M Facility - MSR
   March 2026    LIBOR + applicable margin   MSRs      150,000     
 
125,113
   
 
     —    
April 2022 $250M Facility
   April 2022    LIBOR + applicable margin   First Lien Mortgages      250,000     
 
122,412
   
 
     225,837  
May 2022 $350M Facility
   May 2022    LIBOR + applicable margin   First Lien Mortgages      350,000     
 
102,332
   
 
     283,821  
October 2021 $250M Facility
   October 2021    LIBOR + applicable margin   First Lien Mortgages      250,000     
 
65,541
   
 
     170,174  
August 2021 $200M Facility
   August 2021    LIBOR + applicable margin   First Lien Mortgages      200,000     
 
59,663
   
 
     126,047  
August 2021 $300M Facility
(2)
   August 2021    LIBOR + applicable margin   First Lien Mortgages      300,000     
 
40,562
   
 
     15,719  
Securities Repo Line
   N/A    LIBOR + applicable margin   Mortgage
Related
Asset
     13,951     
 
13,951
   
 
     —    
February 2021 $50M Facility - MSR
(3)
   February 2021    Prime +
applicable margin;
5.00% floor
  MSRs      50,000     
 
—  
 
 
 
     50,000  
June 2023 $300M Facility
   June 2023    LIBOR + applicable margin   First Lien Mortgages      300,000     
 
—  
 
 
 
     —    
                  
 
 
    
 
 
        
 
 
 
Subtotal mortgage lines of credit
            $ 3,688,951     
$
1,940,176
         $ 1,997,464  
             
 
 
    
 
 
        
 
 
 
               
Reverse Lines:
                                            
October 2021 $400M Facility
   October 2021    LIBOR + applicable margin   First Lien Mortgages    $ 400,000     
$
257,257
         $ 84,124  
April 2022 $250M Facility
   April 2022    LIBOR + applicable margin   First Lien Mortgages      250,000     
 
214,245
           173,484  
$200M Repo Facility
   N/A    Bond accrual rate
+ applicable
margin
  Mortgage
Related
Assets
     200,000     
 
176,549
           174,578  
February 2024 $90M Facility
   February 2024    LIBOR + applicable margin   MSRs      90,000     
 
89,497
           —    
December 2021 $100M Facility
   December 2021    LIBOR + applicable margin   First Lien Mortgages      100,000     
 
89,226
           61,220  
March 2022 $100M Facility
   March 2022    LIBOR + applicable margin   First Lien Mortgages      100,000     
 
87,936
           15,803  
 
                             
Outstanding Borrowings at
 
                             
June 30,
2021
         
December 31,
2020
 
Facility
  
Maturity Date
  
Interest Rate
   
Collateral
Pledged
    
Total
Capacity
(1)
    
Successor
         
Predecessor
 
June 2022 $75M Facility
   June 2022      LIBOR + applicable margin  
 
    First Lien Mortgages  
 
     75,000     
 
72,479
   
 
     11,423  
April 2022 $52.5M Facility
   April 2022      LIBOR + applicable margin  
 
   
 
Mortgage
Related
Assets
 
 
 
     52,500     
 
52,500
   
 
     50,239  
April 2022 $50M Facility
   April 2022     

 
Prime +
applicable
margin; 6.00%
floor
 
 
 
 
    Unsecuritized Tails  
 
     50,000     
 
38,757
   
 
     37,442  
April 2022 $45M Facility
   April 2022      9.00%      
 
Mortgage
Related
Assets
 
 
 
     45,000     
 
28,220
   
 
     26,875  
June 2022 $200M Facility
(2)
   June 2022      LIBOR + applicable margin  
 
    First Lien Mortgages  
 
     200,000     
 
26,883
   
 
     128,723  
August 2021 $50M Facility
   August 2021      LIBOR + applicable margin  
 
    First Lien Mortgages  
 
     50,000     
 
24,329
   
 
     2,860  
$1.2M Repo Facility
   N/A      LIBOR + applicable margin  
 
   
 
Mortgage
Related
Assets
 
 
 
     1,215     
 
1,215
   
 
     1,188  
                          
 
 
    
 
 
        
 
 
 
Subtotal reverse lines of credit
 
           $ 1,613,715     
$
1,159,093
         $ 767,959  
              
 
 
    
 
 
        
 
 
 
               
Commercial Lines:
                                                    
September 2022 $150M Facility
   September 2022      LIBOR + applicable margin  
 
   
 
Encumbered
Agricultural
Loans
 
 
 
   $ 150,000     
$
112,229
         $ 52,300  
April 2023 $145M Facility
   April 2023      LIBOR + applicable margin  
 
    First Lien Mortgages  
 
     145,000     
 
86,055
           100,070  
February 2022 $150M Facility
   February 2022      LIBOR + applicable margin  
 
    First Lien Mortgages  
 
     150,000     
 
33,768
           —    
November 2023 $65M Facility
   November 2023      LIBOR + applicable margin  
 
    First Lien Mortgages  
 
     65,000     
 
30,528
           28,064  
August 2022 $75M
   August 2022      2.50% - 3.25%      
 
Encumbered
Agricultural
Loans
 
 
 
     75,000     
 
24,746
           —    
August 202
2
 $25M Facility
   August 2022      10.00%       Second Lien Mortgages  
 
     25,000     
 
20,900
           21,475  
$4M Securities Repo Line
   N/A      LIBOR + applicable margin  
 
   
 
Mortgage
Related
Assets
 
 
 
     4,024     
 
4,024
           —    
February 2022 $150M Facility
   February 2022      LIBOR + applicable margin  
 
    First Lien Mortgages  
 
     150,000     
 
715
           —    
$2M Securities Repo Line
   N/A      Distributed Bond Interest + 50 bps  
 
   
 
Mortgage
Related
Assets
 
 
 
     —       
 
—  
 
         6,411  
                          
 
 
    
 
 
        
 
 
 
Subtotal commercial lines of credit
 
           $ 764,024     
$
312,965
         $ 208,320  
              
 
 
    
 
 
        
 
 
 
Total other financing lines of credit
                    $ 6,066,690     
$
3,412,234
         $ 2,973,743  
                     
 
 
    
 
 
        
 
 
 
(1)
 
Capacity is dependent upon maintaining compliance with, or obtaining waivers of, the terms, conditions and covenants of the respective agreements, including asset-eligibility requirements. Capacity amounts presented are as of June 30, 2021.
(2)
 
See Note 36 - Subsequent Events for additional information on facility amendments.
(3)
 
The February 2021 $50M facility - MSR was paid off and terminated in February 2021.
Summary of maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios
As of June 30, 2021 (Successor), the maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios is presented in the table below (in thousands, except for ratios):
 
Successor
 
Financial Covenants
  
Requirement
    
June 30, 2021
    
Maximum Allowable
Distribution
(1)
 
FAM
                          
Adjusted Tangible Net Worth
  
$
150,000
    
$
191,383
    
$
41,383
 
Liquidity
  
 
40,000
    
 
60,697
    
 
20,697
 
Leverage Ratio
  
 
15:1
 
  
 
13.3:1
 
  
 
21,591
 
Material Decline in Lender Adjusted Net Worth:
                          
Lender Adjusted Tangible Net Worth (Quarterly requirement)
  
$
294,790
    
$
191,383
    
$
(103,406
Lender Adjusted Tangible Net Worth
(Two-Consecutive
Quarterly requirement)
  
 
215,803
    
 
191,383
    
 
(24,419
FACo
                          
Adjusted Tangible Net Worth
  
$
85,000
    
$
93,411
    
$
8,411
 
Liquidity
  
 
20,000
    
 
28,579
    
 
8,579
 
Leverage Ratio
  
 
6:1
 
  
 
3.6:1
 
  
 
37,192
 
FAR
                          
Adjusted Tangible Net Worth
  
$
398,288
    
$
449,271
    
$
50,983
 
Liquidity
  
 
20,000
    
 
25,120
    
 
5,120
 
Leverage Ratio
  
 
6:1
 
  
 
3.6:1
 
  
 
180,788
 
Material Decline in Lender Adjusted Net Worth:
                          
Lender Adjusted Tangible Net Worth (Quarterly requirement)
  
$
302,921
    
$
448,047
    
$
145,126
 
Lender Adjusted Tangible Net Worth
(Two-Consecutive
Quarterly requirement)
  
 
354,344
    
 
448,047
    
 
93,703
 
 
 
As of December 31, 2020 (Predecessor), the maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios is presented in the table below (in thousands, except for ratios):
 
Predecessor
 
Financial Covenants
  
Requirement
    
December 31, 2020
    
Maximum Allowable
Distribution
(1)
 
FAM
                          
Adjusted Tangible Net Worth
   $ 125,000      $ 289,163      $ 164,163  
Liquidity
     40,000        56,775        16,775  
Leverage Ratio
     15:1        9.3:1        110,267  
Material Decline in Lender Adjusted Net Worth:
                          
Lender Adjusted Tangible Net Worth (Quarterly requirement)
   $ 210,428      $ 282,062      $ 71,634  
Lender Adjusted Tangible Net Worth
(Two-Consecutive
Quarterly requirement)
     93,763        282,062        188,299  
FACo
                          
Adjusted Tangible Net Worth
   $ 85,000      $ 126,672      $ 41,672  
Liquidity
     20,000        46,385        26,385  
Leverage Ratio
     6:1        1.7:1        90,782  
FAR
                          
Adjusted Tangible Net Worth
   $ 300,000      $ 474,128      $ 174,128  
Liquidity
     20,000        36,425        16,425  
Leverage Ratio
     5.5:1        2.5:1        258,615  
Material Decline in Lender Adjusted Net Worth:
                          
Lender Adjusted Tangible Net Worth (Quarterly requirement)
   $ 314,091      $ 472,458      $ 158,367  
Lender Adjusted Tangible Net Worth
(Two-Consecutive
Quarterly requirement)
     205,619        472,458        266,839  
 
 
(1)
The Maximum Allowable Distribution for any of the originations subsidiaries is the lowest of the amounts shown for the particular originations subsidiary.