DEBT (Tables)

6 Months Ended

Jun. 30, 2013

The table below summarizes outstanding debt balances, the weighted-average interest rates and term dates at June 30, 2013 and December 31, 2012:

(dollars in thousands)	June 30, 2013		Weighted-Average Effective Interest Rate at June 30, 2013			December 31, 2012		Weighted-Average Effective Interest Rate at December 31, 2012
Asset Related Debt ⁽¹⁾
Senior interests in and debt owed to securitization trusts
Due within one year	$	–		–	%	$	–		–	%
Due after one year ⁽²⁾		577,107		2.0			589,592		2.1
Mandatorily redeemable preferred shares ⁽³⁾
Due within one year		3,700		5.0			4,901		7.5
Due after one year		117,300		5.3			83,819		7.4
Notes payable and other debt – bond related ⁽⁴⁾
Due within one year		–		–			–		–
Due after one year		53,503		5.1			57,729		5.0
Notes payable and other debt – non-bond related
Due within one year		4,181		9.7			17,617		9.9
Due after one year		7,412		9.8			8,290		9.8

Total asset related debt		763,203		2.9			761,948		3.2

Other Debt ⁽¹⁾
Subordinate debentures ⁽⁵⁾
Due within one year		727		8.1			529		8.1
Due after one year		140,674		7.2			193,971		6.9
Notes payable and other debt
Due within one year ⁽⁶⁾		7,737		14.3			10,444		13.5
Due after one year		56,463		5.0			20,634		6.4

Total other debt		205,601		6.9			225,578		7.2

Total asset related debt and other debt		968,804		3.7			987,526		4.1

Debt related to CFVs ⁽⁷⁾
Due within one year		–		–			5,908		10.0
Due after one year		49,903		2.7			49,525		2.7
Total debt related to CFVs		49,903		2.7			55,433		3.5

Total debt	$	1,018,707		3.7		$	1,042,959		4.1

⁽¹⁾

Asset related debt is debt which finances interest-bearing assets and the interest expense from this debt is included in “Net interest income” on the consolidated statements of operations. Other debt is debt which does not finance interest-bearing assets and the interest expense from this debt is included in “Interest expense” under “Operating and other expenses” on the consolidated statements of operations.

⁽²⁾

All but $2.5 million of this debt was assumed by the purchaser of our common shares in TEB on July 3, 2013, at the June 30, 2013 reported amount. See Note 18, “Subsequent Events” for more information.

⁽³⁾

During the second quarter of 2013, the Company recognized the remaining unamortized issuance discounts ($2.3 million) previously recorded as a net discount against the debt balance in order to carry the debt at its liquidation amount at June 30, 2013. This debt was assumed at its liquidation amount by the purchaser of our common shares in TEB on July 3, 2013. See Note 18, “Subsequent Events” for more information. Included in mandatorily redeemable preferred shares were unamortized discounts of $2.7 million at December 31, 2012.

⁽⁴⁾

Included in notes payable and other debt were unamortized discounts of $1.6 million and $1.7 million at June 30, 2013 and December 31, 2012, respectively. This debt will increase by $94.4 million in the third quarter of 2013 as a result of the sale of our common shares in TEB as certain bonds and interests in bonds that were transferred as part of this transaction did not achieve sale accounting and will be treated as a secured borrowing for accounting purposes. See Note 18, “Subsequent Events” for more information.

⁽⁵⁾

Included in the subordinate debt balance were $0.4 million of net discounts and effective interest rate payable (i.e., the difference between the current pay rate and the effective interest rate) and $7.1 million of net premiums and effective interest rate payable at June 30, 2013 and December 31, 2012, respectively.

⁽⁶⁾

This amount included $4.4 million of debt that has come due and remains payable; however, the Company has a forbearance agreement with the lender such that it is not pursuing any remedies.

⁽⁷⁾

See Note 16, “Consolidated Funds and Ventures” for more information.

Schedule of Maturities of Long-term Debt [Table Text Block]

The following table summarizes principal payment commitments across all debt agreements at June 30, 2013:

(in thousands)	Asset Related Debt and Other Debt			CFVs Related Debt
2013	$	13,233		$	–
2014		29,051			35
2015		69,498			–
2016		6,011			–
2017		6,226			–
Thereafter		846,865			49,868
Net discount		(2,080)			–
Total	$	968,804	⁽¹⁾	$	49,903

⁽¹⁾

On July 3, 2013, $695.7 million of debt was assumed by the purchaser of TEB’s common shares.

Schedule of Redeemable Preferred Stock Issued for Debt Instrument [Table Text Block]

The table below provides a summary of the key terms of the subordinate debt issued by MuniMae Holdings II, LLC (“MMH II”)and MMA Financial Holdings, Inc. (“MFH”) and held by third parties at June 30, 2013:

(dollars in thousands)
Issuer	Principal		Net Premium/ (Discount)		Carrying Value		Interim Principal Payments	Maturity Date	Coupon Interest Rate
MMH II	$	29,827	$	-	$	29,827	-	Various dates through December 2033	8.0%
MFH		33,286		54		33,340	$4,689 due April 2015	March 30, 2035	0.75% to March 2015, then 3-month LIBOR plus 3.3%
MFH		30,116		(130)		29,986	$4,242 due May 2015	April 30, 2035	0.75% to April 2015, then 3-month LIBOR plus 3.3%
MFH		17,219		(99)		17,120	$2,305 due May 2015	July 30, 2035	0.75% to April 2015, then 3-month LIBOR plus 3.3%
MFH		31,308		(180)		31,128	$4,191 due May 2015	July 30, 2035	0.75% to April 2015, then 3-month LIBOR plus 3.3%
	$	141,756	$	(355)	$	141,401