8. Secured Financing Agreements

The following table is a summary of our secured financing agreements in place as of June 30, 2014 and December 31, 2013 (dollars in thousands):

Pledged
Asset

Maximum

Carrying Value at

Facility
Type

Revolver

Eligible
Assets

Current
Maturity

Extended
Maturity(a)

Pricing

Carrying
Value

Facility
Size

June 30, 2014

December 31,
2013

Lender 1 Repo 1

Repurchase

Yes

Identified Loans and CMBS

(b)

LIBOR + 1.85% to 5.25%

1,349,733

1,000,000

753,032

449,323

Lender 1 Repo 2

Repurchase

Yes

Identified RMBS

(c)

N/A

LIBOR + 1.90%

230,129

175,000

120,627

127,943

Lender 1 Repo 3

Repurchase

Identified Loans

Dec 2014

Dec 2016

LIBOR + 2.75%

210,041

148,860

154,133

Lender 2 Repo 1

Repurchase

Yes

Identified Loans

Oct 2015

Oct 2018

LIBOR + 2.00% to 2.75%

269,290

225,000

(d)

181,151

100,886

Lender 3 Repo 1

Repurchase

Identified Loans

May 2017

May 2019

LIBOR + 2.85%

135,132

93,836

50,871

Conduit Repo 1

Repurchase

Yes

Identified Loans

Sep 2014

LIBOR + 2.20%

—

250,000

—

129,843

Conduit Repo 2

Repurchase

Yes

Identified Loans

Nov 2014

LIBOR + 2.10%

128,083

150,000

95,568

—

Lender 4 Repo 1

Repurchase

Identified Loans

Oct 2015

Oct 2017

LIBOR + 2.60%

456,758

359,226

347,697

Lender 5 Repo 1

Repurchase

Identified CMBS

Dec 2014

LIBOR + 2.00%

84,150

58,467

Borrowing Base

Bank Credit Facility

Yes

Identified Loans

Sep 2015

Sep 2017

LIBOR + 3.25%(e)

661,164

250,000

84,386

169,104

Term Loan

Syndicated Facility

Specifically Identified Assets

Apr 2020

LIBOR + 2.75%(e)

2,936,771

668,423

666,114

(f)

669,293

(f)

6,461,251

3,378,812

2,561,267

2,257,560

(a) Subject to certain conditions as defined in the respective facility agreement.

(b) Maturity date for borrowings collateralized by loans of January 2017 before extension options and January 2019 assuming initial extension options. Maturity date for borrowings collateralized by CMBS of January 2015 before extension options and January 2016 assuming initial extension options.

(d) On July 24, 2014, we amended the Lender 2 Repo 1 facility to upsize available borrowings from $225 million to $325 million and reduce pricing 25-50 basis points depending on the collateral type.

(e) Subject to borrower’s option to choose alternative benchmark based rates pursuant to the terms of the credit agreement. The Term Loan is also subject to a 75 basis point floor.

(f) Term loan outstanding balance is net of $2.3 million and $2.5 million of unamortized discount as of June 30, 2014 and December 31, 2013.

In January 2014, we amended the Lender 1 Repo 1 facility to (i) upsize available borrowings to $1.0 billion from $550 million; (ii) extend the maturity date for loan collateral to January 2019 and for CMBS collateral to January 2016, each from August 2014, and each assuming initial extension options; (iii) allow for up to four additional one-year extension options with respect to any loan collateral that remains financed at maturity, in an effort to match the term of the maturity dates of these assets; (iv) reduce pricing and debt-yield thresholds for purchased assets; and (v) amend certain financial covenants to contemplate the spin-off of the SFR segment. STWD guarantees certain of the obligations of the consolidated subsidiary, which is the borrower under the repurchase agreement, up to a maximum liability of either 25% or 100% of the then-currently outstanding repurchase price of purchased assets, depending upon the type of asset being financed.

In May 2014, we amended our Lender 3 Repo 1 facility to (i) increase additional borrowings by $42.7 million; (ii) extend the maturity date for loan collateral to May 2019, assuming the exercise of two one-year extension options; (iii) reduce pricing for all purchased assets; and (iv) increase advance rates for certain purchased assets.

Our secured financing agreements contain certain financial tests and covenants. As of June 30, 2014, we were in compliance with all such covenants.

The following table sets forth our five-year principal repayments schedule for the secured financings, assuming no defaults or expected extensions and excluding the loans transferred as secured borrowings. Our credit facilities generally require principal to be paid down prior to the facilities’ respective maturities if and when we receive principal payments on, or sell, the investment collateral that we have pledged. The amount reflected in each period includes principal repayments on our credit facilities that would be required if (i) we received the repayments that we expect to receive on the investments that have been pledged as collateral under the credit facilities, as applicable, and (ii) the credit facilities that are expected to have amounts outstanding at their current maturity dates are extended where extension options are available to us (amounts in thousands):

2014 (remainder of)	$	194,472
2015	155,464
2016	296,329
2017	568,760
2018	223,683
Thereafter(1)	1,124,868
Total	$	2,563,576

(1) Principal paydown of the Term Loan through 2020 excludes $2.3 million of discount amortization.

Secured financing maturities for 2014 primarily relate to $95.6 million on the Conduit Repo 2 facility, $58.5 million on the Lender 5 Repo 1 facility, and $26.2 million on the Lender 1 Repo 3 facility.

As of June 30, 2014 and December 31, 2013, we had approximately $24.9 million and $22.5 million, respectively, of deferred financing costs from secured financing agreements, net of amortization, which is included in other assets on our condensed consolidated balance sheets. For the three and six months ended June 30, 2014, approximately $2.6 million, and $5.3 million, respectively, of amortization was included in interest expense on our condensed consolidated statements of operations. For the three and six months ended June 30, 2013, approximately $1.8 million, and $5.0 million, respectively, of amortization was included in interest expense on our condensed consolidated statements of operations.