Note 15 – Senior secured note

On February 13, 2017, ReadyCap Holdings LLC, a subsidiary of the Company, issued $75.0 million in 7.50% Senior Secured Notes due 2022. On June 13, 2017, ReadyCap Holdings LLC, issued an additional $65.0 million in aggregate principal amount of 7.50% Senior Secured Notes due 2022, which have identical terms (other than issue date and issue price) to the notes issued on February 13, 2017 (collectively “the Notes”). Payments of the amounts due on the Notes are fully and unconditionally guaranteed by the Company and its subsidiaries: Sutherland Partners LP, Sutherland Asset I, LLC, and ReadyCap Commercial, LLC. Interest on the Notes is payable semiannually on each February 15 and August 15, beginning on August 15, 2017. The Notes will mature on February 15, 2022. ReadyCap’s and the guarantors’ respective obligations under the Notes are secured by a perfected first-priority lien on the capital stock of ReadyCap and certain assets owned by the Company.

As of June 30, 2017, we were in compliance with all covenants with respect to the Notes.

The following table presents the components of the senior secured note balance on the consolidated balance sheet:



(In Thousands)	June 30, 2017		December 31, 2016
Senior secured note - principal		140,000		—
Premium		1,917		—
Less: Deferred financing costs		3,606		—
Senior secured note	$	138,311	$	—