9. Secured Financing Agreements

The following table is a summary of our secured financing agreements in place as of June 30, 2016 and December 31, 2015 (dollars in thousands):


										Carrying value at
	Current	Extended			Pledged Asset		Maximum			June 30,		December 31,
	Maturity	Maturity (a)	Pricing		Carrying Value		Facility Size			2016		2015
Lender 1 Repo 1	(b)	(b)	LIBOR + 1.85% to 5.25%		$	2,179,007	$	1,600,000		$	1,490,949	$	975,735
Lender 2 Repo 1	Oct 2017	Oct 2020	LIBOR + 1.75% to 2.75%			300,368		500,000			238,479		233,705
Lender 3 Repo 1	May 2017	May 2019	LIBOR + 2.50% to 2.85%			112,022		79,325			79,325		131,997
Lender 4 Repo 1	Oct 2016	Oct 2017	LIBOR + 2.00%			—		—			—		309,498
Lender 4 Repo 2	Dec 2018	Dec 2020	LIBOR + 2.00% to 2.50%			253,813		1,000,000	(c)		164,940		—
Lender 6 Repo 1	Aug 2018	N/A	LIBOR + 2.50% to 3.00%			431,821		500,000			288,149		491,263
Lender 7 Secured Financing	Jul 2018	Jul 2019	LIBOR + 2.75%	(d)		108,120		650,000	(e)		—		38,055
Conduit Repo 1	N/A	N/A	N/A			—		—			—		80,741
Conduit Repo 2	Nov 2016	N/A	LIBOR + 2.10%			42,612		150,000			31,594		—
Conduit Repo 3	Feb 2018	Feb 2019	LIBOR + 2.10%			9,096		150,000			6,825		66,041
Conduit Repo 4	Oct 2017	Oct 2020	LIBOR + 2.25%			62,377		100,000			46,612		—
CMBS Repo 1	(f)	(f)	LIBOR + 1.90%			32,800		21,354			21,354		—
CMBS Repo 2	Jun 2020	N/A	LIBOR/EURIBOR + 2.00% to 2.70%			339,132		247,192			247,192		120,850
CMBS Repo 3	(g)	(g)	LIBOR + 1.40% to 1.85%			409,685		287,467			287,467		243,434
RMBS Repo 1	(h)	N/A	LIBOR + 1.90%			157,641		185,000			91,144		2,000
Investing and Servicing Segment Property Mortgages	Jun 2018 to Jun 2026	N/A	Various			150,199		124,061			118,163		82,964
Ireland Portfolio Mortgage	May 2020	N/A	EURIBOR + 1.69%			483,814		326,558			326,558		319,322
Woodstar Portfolio Mortgages	Jul 2017 to Jan 2026	N/A	3.72% to 7.46%	(i)		380,690		267,114			267,114		248,630
Woodstar Portfolio Government Financing	Jun 2017 to Jun 2049	N/A	1.00% to 5.00%			318,501		137,394			137,394		8,982
Term Loan	Apr 2020	N/A	LIBOR + 2.75%	(d)		2,937,230		654,886			654,886		658,270
FHLB Advances	Nov 2016	N/A	LIBOR + 0.37%			10,207		9,250			9,250		9,250
					$	8,719,135	$	6,989,601			4,507,395		4,020,737
Unamortized premium (discount), net											1,414		(1,702)
Unamortized deferred financing costs											(32,588)		(38,336)
										$	4,476,221	$	3,980,699

(a)

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

(b)

Maturity date for borrowings collateralized by loans is January 2017 before extension options and January 2019 assuming exercise of initial extension options. Borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions and not to exceed January 2023.

(c)

The initial maximum facility size of $600.0 million may be increased to $1.0 billion at our option, subject to certain conditions.

(d)

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.

(e)

The initial maximum facility size of $450.0 million may be increased to $650.0 million at our option, subject to certain conditions.

(f)

Facility carries a rolling 11 month term which may reset monthly with the lender’s consent not to exceed December 2018. This facility carries no maximum facility size. Amount herein reflects the outstanding balance as of June 30, 2016.

(g)

Facility carries a rolling 12 month term which may reset monthly with the lender’s consent. Current maturity is June 2017. This facility carries no maximum facility size. Amount herein reflects the outstanding balance as of June 30, 2016.

(h)

The date that is 270 days after the buyer delivers notice to seller, subject to a maximum date of May 2018.

(i)

The Woodstar Portfolio Mortgages carry a weighted average interest rate of 3.99% as of June 30, 2016.

In the normal course of business, the Company is in discussions with its lenders to extend or amend any financing facilities which contain near term expirations.

During the six months ended June 30, 2016, we executed four mortgage facilities with aggregate borrowings of $32.2 million to finance commercial real estate acquired by our Investing and Servicing Segment. As of June 30, 2016, these facilities carry a remaining weighted average term of 6.1 years. One of the facilities carry floating annual interest rates with average spreads of LIBOR + 2.25% while the remaining facilities carry average fixed annual interest rates of 3.50%.

During the three and six months ended June 30, 2016, we assumed one and 17 federal, state and county sponsored mortgage facilities (“Woodstar Portfolio Government Financing”), respectively, associated with certain properties acquired in our Woodstar Portfolio with aggregate outstanding balances of $2.5 million and $129.2 million, respectively, as of the acquisition dates. During the three months ended June 30, 2016, we also assumed two other mortgage facilities (“Woodstar Portfolio Mortgages”) associated with properties acquired in our Woodstar Portfolio with aggregate outstanding balances of $18.6 million, as of the acquisition dates.

In January 2016, we amended the CMBS Repo 2 facility to extend the maturity from December 2016 to December 2017.

In March 2016, we amended the Lender 2 Repo 1 facility to upsize available borrowings from $500.0 million to $600.0 million. This additional $100.0 million of borrowing capacity is exclusively for the financing of conduit mortgage loans and therefore this component of the Lender 2 Repo 1 facility is separately presented in the secured financing agreements table above as Conduit Repo 4.

In April 2016, we amended the Lender 4 Repo 2 facility to allow for up to $200.0 million of financing for conduit mortgage loan originations under the existing borrowing capacity.

In April 2016, we terminated the Conduit Repo 1 facility.

In May 2016, we amended the RMBS Repo 1 facility to upsize available borrowings from $125.0 million to $185.0 million and amend the maturity date to the earlier of (i) 270 days from when the lender delivers notice to the Company or (ii) May 2018.

In June 2016, we expanded our CMBS Repo 2 facility to finance our acquisition of one first mortgage loan and one first mortgage loan portfolio, each of which had been securitized into single-borrower securitizations by the seller. This financing, which totaled €124.1 million as of June 30, 2016, matures in June 2020 and carries an annual interest rate of three-month EURIBOR + 2.00%.

Our secured financing agreements contain certain financial tests and covenants. Should we breach certain of these covenants it may restrict our ability to pay dividends in the future. As of June 30, 2016, we were in compliance with all such covenants.

The following table sets forth our five‑year principal repayments schedule for secured financings assuming no defaults and excluding 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):


	Repurchase		Other Secured
	Agreements		Financing		Total
2016 (remainder of)	$	166,552	$	14,313	$	180,865
2017		827,610		30,390		858,000
2018		994,507		30,808		1,025,315
2019		617,347		19,310		636,657
2020		308,421		971,302		1,279,723
Thereafter		79,593		447,242		526,835
Total	$	2,994,030	$	1,513,365	$	4,507,395

Secured financing maturities for 2016 primarily relate to $62.9 million on the Lender 4 Repo 2 facility and $46.6 million on the Conduit Repo 4 facility.

For the three and six months ended June 30, 2016, approximately $4.3 million and $8.2 million, respectively, of amortization of deferred financing costs from secured financing agreements was included in interest expense on our condensed consolidated statements of operations. For the three and six months ended June 30, 2015, approximately $3.5 million and $7.0 million, respectively, of amortization of deferred financing costs was included in interest expense on our condensed consolidated statements of operations.

The following table sets forth our outstanding balance of repurchase agreements related to the following asset collateral classes as of June 30, 2016 and December 31, 2015 (amounts in thousands):


Class of Collateral	June 30, 2016		December 31, 2015
Loans held-for-investment	$	2,198,902	$	2,142,198
Loans held-for-sale		147,971		146,782
Investment securities		647,157		366,284
	$	2,994,030	$	2,655,264

We seek to mitigate risks associated with our repurchase agreements by managing risk related to the credit quality of our assets, interest rates, liquidity, prepayment speeds and market value. The margin call provisions under the majority of our repurchase facilities, consisting of 62% of these agreements, do not permit valuation adjustments based on capital markets activity. Instead, margin calls on these facilities are limited to collateral-specific credit marks. To monitor credit risk associated with the performance and value of our loans and investments, our asset management team regularly reviews our investment portfolios and is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary. For repurchase agreements containing margin call provisions for general capital markets activity, approximately 33% of these pertain to our loans held-for-sale, for which we manage credit risk through the purchase of credit index instruments. We further seek to manage risks associated with our repurchase agreements by matching the maturities and interest rate characteristics of our loans with the related repurchase agreements.