8. DEBT OBLIGATIONS, NET

The details of the Company’s debt obligations at June 30, 2018 and December 31, 2017 are as follows ($ in thousands):

June 30, 2018



Debt Obligations	Committed Financing		Debt Obligations Outstanding			Committed but Unfunded		Interest Rate at June 30, 2018(1)	Current Term Maturity	Remaining Extension Options	Eligible Collateral	Carrying Amount of Collateral		Fair Value of Collateral

Committed Loan Repurchase Facility	$	600,000	$	156,960		$	443,040	3.82% - 4.57%	10/1/2020	(2)	(3)	$	249,792	$	248,215
Committed Loan Repurchase Facility	350,000		151,930			198,070		4.29% - 5.04%	5/24/2019	(4)	(3)	277,588		278,773
Committed Loan Repurchase Facility	300,000		127,751			172,249		4.07% - 4.57%	4/7/2019	(5)	(6)	196,877		197,412
Committed Loan Repurchase Facility	300,000		106,564			193,436		4.06% - 5.06%	5/6/2021	(7)	(3)	161,130		161,081
Committed Loan Repurchase Facility	100,000		56,448			43,552		4.17% - 4.57%	6/28/2019	N/A	(3)	76,190		76,190
Total Committed Loan Repurchase Facilities	1,650,000		599,653			1,050,347						961,577		961,671
Committed Securities Repurchase Facility	400,000		99,889			300,111		2.38% - 2.99%	9/30/2019	N/A	(8)	120,724		120,724
Uncommitted Securities Repurchase Facility	N/A (9)		120,421			N/A (9)		2.65% - 4.07%	7/2018 - 9/2018	N/A	(8)	137,374		137,374		(10)(11)
Total Repurchase Facilities	2,050,000		819,963			1,350,458						1,219,675		1,219,769
Revolving Credit Facility	241,430		—			241,430		NA	2/11/2019	(12)	N/A (13)	N/A (13)		N/A (13)
Mortgage Loan Financing	770,880		770,880			—		4.25% - 6.75%	2020 - 2028	N/A	(14)	999,313		1,170,938		(15)
CLO Debt	685,416		685,416		(16)	—		2.95% - 5.67%	2021-2034	N/A	(17)	861,209		861,356
Participation Financing - Mortgage Loan Receivable	2,647		2,647			—		17.00%	12/6/2018	N/A	(3)	2,647		2,647
Borrowings from the FHLB	1,933,522		1,270,000			663,522		1.02% - 2.74%	2018 - 2024	N/A	(18)	1,732,392		1,733,058		(19)
Senior Unsecured Notes	1,166,201		1,153,543		(20)	—		5.250% - 5.875%	2021 - 2025	N/A	N/A (21)	N/A (21)		N/A (21)
Total Debt Obligations	$	6,850,096	$	4,702,449		$	2,255,410					$	4,815,236	$	4,987,768


(1)	June 2018 LIBOR rates are used to calculate interest rates for floating rate debt.


(2)	Two additional 12-month periods at Company’s option. No new advances are permitted after the initial maturity date.


(3)	First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans.


(4)	Two additional 12-month periods at Company’s option.


(5)	One additional 364-day periods at Company’s option and one additional 364-day period with Bank’s consent.


(6)	First mortgage and mezzanine commercial real estate loans. It does not include the real estate collateralizing such loans.


(7)	One additional 12-month extension period and two additional 6-month extension periods at Company’s option.


(8)	Commercial real estate securities. It does not include the real estate collateralizing such securities.


(9)	Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances.


(10)	As more fully described in Note 4, certain securities which were purchased from the LCCM LC-26 securitization trust are restricted. Includes $2.5 million of restricted securities.


(11)	Includes $6.0 million of securities purchased in the secondary market of the Company’s October 2017 CLO issuance. These securities are not included in real estate securities, available-for-sale but were rather considered a partial retirement of CLO Debt.


(12)	Two additional 12-month periods at Company’s option.


(13)	The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries and secured by equity pledges in certain Company subsidiaries.


(14)	Real estate.


(15)	Using undepreciated carrying value of commercial real estate to approximate fair value.


(16)	Presented net of unamortized debt issuance costs of $4.5 million at June 30, 2018.


(17)	First mortgage commercial real estate loans and pari passu interests therein. It does not include the real estate collateralizing such loans.


(18)	First mortgage commercial real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities.


(19)	As more fully described in Note 4, certain securities which were purchased from the LCCM LC-26 securitization trust are restricted. Includes $9.7 million of restricted securities.


(20)	Presented net of unamortized debt issuance costs of $12.7 million at June 30, 2018.


(21)	The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries.

December 31, 2017



Debt Obligations	Committed Financing		Debt Obligations Outstanding				Committed but Unfunded		Interest Rate at December 31, 2017(1)	Current Term Maturity	Remaining Extension Options	Eligible Collateral	Carrying Amount of Collateral		Fair Value of Collateral

Committed Loan Repurchase Facility	$	600,000	$	120,493			$	479,507	3.23% - 3.98%	10/1/2020	(2)	(3)	$	160,031	$	159,568
Committed Loan Repurchase Facility	450,000		183,111				266,889		3.63% - 4.48%	5/24/2018	(4)	(3)	333,647		335,076
Committed Loan Repurchase Facility	300,000		63,007				236,993		3.73% - 4.73%	4/10/2018	(5)	(6)	125,379		125,975
Committed Loan Repurchase Facility	200,000		32,042				167,958		4.25% - 4.50%	2/29/2020	(7)	(8)	48,045		48,045
Committed Loan Repurchase Facility	100,000		—				100,000		N/A	6/28/2019	N/A	(3)	—		—
Total Committed Loan Repurchase Facilities	1,650,000		398,653				1,251,347						667,102		668,664
Committed Securities Repurchase Facility	400,000		—				400,000		N/A	9/30/2019	N/A	(9)	—		—
Uncommitted Securities Repurchase Facility	N/A (10)		74,757				N/A (10)		1.65% - 3.31%	1/2018 - 3/2018	N/A	(9)	86,322		86,322		(11)
Total Repurchase Facilities	2,050,000		473,410				1,651,347						753,424		754,986
Revolving Credit Facility	241,430		—				241,430		N/A	2/11/2018	(4)	N/A (12)	N/A (14)		N/A (14)
Mortgage Loan Financing	692,696		692,696				—		4.25% - 6.75%	2018 - 2027	N/A	(13)	911,034		1,066,708		(14)
CLO Debt	688,479		688,479		(15	)	—		2.36% - 5.08%	2021-2034	N/A	(16)	880,385		881,576
Participation Financing - Mortgage Loan Receivable	3,107		3,107				—		17.00%	6/6/2018	N/A	(3)	3,107		3,107
Borrowings from the FHLB	2,000,000		1,370,000				630,000		0.87% - 2.74%	2018 - 2024	N/A	(17)	1,777,597		1,783,210		(18)
Senior Unsecured Notes	1,166,201		1,152,134		(19)		—		5.250% - 5.875%	2021 - 2025	N/A	N/A (20)	N/A (20)		N/A (20)
Total Debt Obligations	$	6,841,913	$	4,379,826			$	2,522,777					$	4,325,547	$	4,489,587


(1)	December 31, 2017 LIBOR rates are used to calculate interest rates for floating rate debt.


(2)	Two additional 12-month periods at Company’s option. No new advances are permitted after the initial maturity date.


(3)	First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans.


(4)	Three additional 12-month periods at Company’s option.


(5)	Two additional 364-day periods at Company’s option and one additional 364-day period with Bank’s consent.


(6)	First mortgage and mezzanine commercial real estate loans. It does not include the real estate collateralizing such loans.


(7)	One additional 12-month extension period and two additional 6-month extension periods at Company’s option.


(8)	First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans.


(9)	Commercial real estate securities. It does not include the real estate collateralizing such securities.


(10)	Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances.


(11)	As more fully described in Note 4, certain securities which were purchased from the LCCM LC-26 securitization trust are restricted. Includes $26.7 million of restricted securities.


(12)	The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries and secured by equity pledges in certain Company subsidiaries.


(13)	Real estate.


(14)	Using undepreciated carrying value of commercial real estate to approximate fair value.


(15)	Presented net of unamortized debt issuance costs of $6.0 million at December 31, 2017.


(16)	First mortgage commercial real estate loans and pari passu interests therein. It does not include the real estate collateralizing such loans.


(17)	First mortgage commercial real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities.


(18)	As more fully described in Note 4, certain securities which were purchased from the LCCM LC-26 securitization trust are restricted. Includes $10.1 million of restricted securities.


(19)	Presented net of unamortized debt issuance costs of $14.1 million at December 31, 2017.


(20)	The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries.

Committed Loan and Securities Repurchase Facilities

The Company has entered into multiple committed master repurchase agreements in order to finance its lending activities. The Company has entered into five committed master repurchase agreements, as outlined in the June 30, 2018 table above, totaling $1.7 billion of credit capacity. Assets pledged as collateral under these facilities are limited to whole mortgage loans or participation interests in mortgage loans collateralized by first liens on commercial properties and mezzanine debt. The Company also has a term master repurchase agreement with a major U.S. bank to finance CMBS totaling $400.0 million. The Company’s repurchase facilities include covenants covering net worth requirements, minimum liquidity levels, maximum leverage ratios, and minimum fixed charge coverage ratios. The Company believes it was in compliance with all covenants as of June 30, 2018 and December 31, 2017.

The Company has the option to extend some of the current facilities subject to a number of conditions, including satisfaction of certain notice requirements, no event of default exists, and no margin deficit exists, all as defined in the repurchase facility agreements. The lenders have sole discretion with respect to the inclusion of collateral in these facilities, to determine the market value of the collateral on a daily basis, to be exercised on a good faith basis, and have the right in certain cases to require additional collateral, a full and/or partial repayment of the facilities (margin call), or a reduction in unused availability under the facilities, sufficient to rebalance the facilities if the estimated market value of the included collateral declines.

On February 22, 2017, the Company exercised a one year extension option on one of its committed loan repurchase facilities. In connection with this extension, the Company elected to reduce the maximum capacity of the facility to $300.0 million. In addition, on March 21, 2017, the Company amended this committed loan repurchase facility to, among other things, add one additional 364-day extension period at Company’s option and one additional 364-day extension period permitted with lender’s consent.

On March 1, 2017, the Company executed an amendment and extension of one of its credit facilities with a major banking institution, providing for, among other things, the extension of the maximum term of the facility to February 28, 2022 and increasing the maximum funding capacity to $200.0 million.

On May 1, 2017, the Company executed an amendment to one of its credit facilities with a major banking institution to, among other things, extend the maximum term by an additional year to May 24, 2021.

On September 29, 2017, the Company executed an amendment to its committed securities repurchase facility with a major banking institution, providing for, among other things, the extension of the maximum term of the facility to September 30, 2019.

Effective September 30, 2017, the Company executed an amendment of one of its committed loan repurchase facilities with a major banking institution, providing for, among other things, the extension of the maximum term of the facility to October 1, 2022, inclusive of two 12-month extension options, and to extend of the final date to obtain new advances under the facility to October 1, 2020.

On January 4, 2018, the Company executed an amendment to its committed loan repurchase facility with a major banking institution, providing for, among other things, the extension of the maximum term of the facility to April 7, 2019.

On April 3, 2018, the Company exercised its option to extend one of its credit facilities with a major banking institution for a term of one year and agreed with such banking institution to decrease the maximum funding capacity under such facility from $450 million to $350 million together with other related modifications, all of which will be memorialized in definitive documentation.

On May 7, 2018, the Company executed an amendment of one of its committed loan repurchase facilities with a major banking institution, providing for, among other things, the extension of the maximum term of the facility to May 6, 2023 and increasing the maximum funding capacity to $300.0 million.

As of June 30, 2018, we had repurchase agreements with eight counterparties, with total debt obligations outstanding of $820.0 million. As of June 30, 2018, three counterparties, Deutsche Bank, JP Morgan and Wells Fargo, held collateral that exceeded the amounts borrowed under the related repurchase agreements by more than $75.6 million, or 5% of our total equity. As of June 30, 2018, the weighted average haircut, or the percent of collateral value in excess of the loan amount, under our repurchase agreements was 32.8%. There have been no significant fluctuations in haircuts across asset classes on our repurchase facilities.

Revolving Credit Facility

On February 11, 2014, the Company entered into a revolving credit facility (the “Revolving Credit Facility”), which was subsequently amended on February 26, 2016, March 1, 2017, March 23, 2017, September 29, 2017 and October 27, 2017, to add additional banks to our syndicate, add two additional one-year extension options and increase its maximum funding capacity. The Revolving Credit Facility provides for an aggregate maximum borrowing amount of $241.4 million, including a $25.0 million sublimit for the issuance of letters of credit. The Revolving Credit Facility is available on a revolving basis to finance the Company’s working capital needs and for general corporate purposes. The Revolving Credit Facility has a maturity date of February 11, 2019, which may be extended by two 12-month periods subject to the satisfaction of customary conditions, including the absence of default. Interest on the Revolving Credit Facility is one-month LIBOR plus 3.50% per annum payable monthly in arrears.

The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries. The Revolving Credit Facility is secured by a pledge of the shares of (or other ownership or equity interests in) certain subsidiaries to the extent the pledge is not restricted under existing regulations, law or contractual obligations.

LCFH is subject to customary affirmative covenants and negative covenants, including limitations on the incurrence of additional debt, liens, restricted payments, sales of assets and affiliate transactions. In addition, under the Revolving Credit Facility, LCFH is required to comply with financial covenants relating to minimum net worth, maximum leverage, minimum liquidity, and minimum fixed charge coverage, consistent with our other credit facilities. The Company’s ability to borrow under the Revolving Credit Facility is dependent on, among other things, LCFH’s compliance with the financial covenants. The Revolving Credit Facility contains customary events of default, including non-payment of principal or interest, fees or other amounts, failure to perform or observe covenants, cross-default to other indebtedness, the rendering of judgments against the Company or certain of our subsidiaries to pay certain amounts of money and certain events of bankruptcy or insolvency.

Debt Issuance Costs

As discussed in Note 2, Significant Accounting Policies in the Annual Report, the Company considers its committed loan master repurchase facilities and Revolving Credit Facility to be revolving debt arrangements. As such, the Company continues to defer and present costs associated with these facilities as an asset, subsequently amortizing those costs ratably over the term of each revolving debt arrangement. As of June 30, 2018 and December 31, 2017, the amount of unamortized costs relating to such facilities are $7.7 million and $7.8 million, respectively, and are included in other assets in the consolidated balance sheets.

Uncommitted Securities Repurchase Facilities

The Company has also entered into multiple master repurchase agreements with several counterparties collateralized by real estate securities. The borrowings under these agreements have typical advance rates between 75% and 95% of the fair value of collateral.

Mortgage Loan Financing

During the six months ended June 30, 2018 and 2017, the Company executed eight and 23 term debt agreements, respectively, to finance properties in its real estate portfolio. These non-recourse debt agreements provide for fixed rate financing at rates, ranging from 4.25% to 6.75%, maturing between 2020 - 2028 as of June 30, 2018. These loans have carrying amounts of $770.9 million and $692.7 million, net of unamortized premiums of $6.1 million and $6.6 million at June 30, 2018 and December 31, 2017, respectively, representing proceeds received upon financing greater than the contractual amounts due under these agreements. The premiums are being amortized over the remaining life of the respective debt instruments using the effective interest method. The Company recorded $0.2 million and $0.5 million of premium amortization, which decreased interest expense, for the three and six months ended June 30, 2018, respectively. The Company recorded $0.2 million and $0.5 million of premium amortization, which decreased interest expense, for the three and six months ended June 30, 2017, respectively. The loans are collateralized by real estate and related lease intangibles, net, of $999.3 million and $911.0 million as of June 30, 2018 and December 31, 2017, respectively.

CLO Debt

The Company completed its inaugural CLO issuances in the two transactions described below. As of June 30, 2018 and December 31, 2017, the Company had a total of $685.4 million and $688.5 million, respectively, of floating rate, non-recourse CLO debt included in debt obligations on its consolidated balance sheets. Unamortized debt issuance costs of $4.5 million and $6.0 million are included in CLO Debt as of June 30, 2018 and December 31, 2017, respectively. As of June 30, 2018, the CLO debt has interest rates of 2.95% to 5.67% (with a weighted average of 3.95%). As of June 30, 2018, collateral for the CLO debt comprised $861.2 million of first mortgage commercial mortgage real estate loans.

On October 17, 2017, a consolidated subsidiary of the Company consummated a securitization of floating-rate commercial mortgage loans through a static CLO structure. Over $456.9 million of balance sheet loans (“Contributed Loans”) were contributed into the CLO. Certain of the Contributed Loans have future funding components that were not contributed to the CLO and that are retained by a consolidated subsidiary of the Company in the form of a participation interest or separate note. However, for a limited period of time, to the extent loans in the CLO are repaid, the CLO may acquire portions of the future fundings from the Company’s consolidated subsidiary. A consolidated subsidiary of the Company retained an approximately 18.5% interest in the CLO by retaining the most subordinate classes of notes issued by the CLO, retains control over major decisions made with respect to the administration of the Contributed Loans and appoints the special servicer under the CLO. The CLO is a VIE and the Company is the primary beneficiary and, therefore, consolidates the VIE - See Note 3.

On December 21, 2017, a subsidiary of the Company consummated a securitization of fixed and floating-rate commercial mortgage loans through a static CLO structure. Over $431.5 million of Contributed Loans were contributed into the CLO. Certain of the Contributed Loans have future funding components that were not contributed to the CLO and that are retained by a consolidated subsidiary of the Company in the form of a participation interest or separate note. However, for a limited period of time, to the extent loans in the CLO are repaid, the CLO may acquire portions of the future fundings from the Company’s consolidated subsidiary. A consolidated subsidiary of the Company retained an approximately 25% interest in the CLO by retaining the most subordinate classes of notes issued by the CLO, retains control over major decisions made with respect to the administration of the Contributed Loans and appoints the special servicer under the CLO. The CLO is a VIE and the Company is the primary beneficiary and, therefore, consolidates the VIE - See Note 3.

Participation Financing - Mortgage Loan Receivable

During the three months ended March 2017, the Company sold a participating interest in a first mortgage loan receivable to a third party. The sales proceeds of $4.0 million are considered non-recourse secured borrowings and are recognized in debt obligations on the Company’s consolidated balance sheets with $2.6 million and $3.1 million outstanding as of June 30, 2018 and December 31, 2017, respectively. The Company recorded $0.1 million and $0.2 million of interest expense for the three and six months ended June 30, 2018, respectively. The Company recorded $0.2 million of interest expense for the three and six months ended June 30, 2017.

Borrowings from the Federal Home Loan Bank (“FHLB”)

On July 11, 2012, Tuebor Captive Insurance Company LLC (“Tuebor”), a consolidated subsidiary of the Company, became a member of the FHLB and subsequently drew its first secured funding advances from the FHLB. On December 6, 2017, Tuebor’s advance limit was updated by the FHLB to the lowest of a Set Dollar Limit ($2.0 billion), 40% of Tuebor’s total assets or 150% of the Company’s total equity. Beginning April 1, 2020 through December 31, 2020, the Set Dollar Limit will be $1.5 billion. Beginning January 1, 2021 through February 19, 2021, the Set Dollar Limit will be $750.0 million. Tuebor is well-positioned to meet its obligations and pay down its advances in accordance with the scheduled reduction in the Set Dollar Limit, which remains subject to revision by the FHLB or as a result of any future changes in applicable regulations.

As of June 30, 2018, Tuebor had $1.3 billion of borrowings outstanding (with an additional $663.5 million of committed term financing available from the FHLB), with terms of overnight to six years (with a weighted average of 2.4 years), interest rates of 1.02% to 2.74% (with a weighted average of 2.07%), and advance rates of 59.3% to 95.2% of the collateral. As of June 30, 2018, collateral for the borrowings was comprised of $787.8 million of CMBS and U.S. Agency Securities and $944.6 million of first mortgage commercial real estate loans.

As of December 31, 2017, Tuebor had $1.4 billion of borrowings outstanding (with an additional $630.0 million of committed term financing available from the FHLB), with terms of overnight to six years (with a weighted average of 2.5 years), interest rates of 0.87% to 2.74% (with a weighted average of 1.61%), and advance rates of 49.6% to 100% of the collateral. As of December 31, 2017, collateral for the borrowings was comprised of $861.7 million of CMBS and U.S. Agency Securities and $915.9 million of first mortgage commercial real estate loans.

Tuebor is subject to state regulations which require that dividends (including dividends to the Company as its parent) may only be made with regulatory approval. However, there can be no assurance that we would obtain such approval if sought. Largely as a result of this restriction, approximately $1.3 billion of the member’s capital was restricted from transfer via dividend to Tuebor’s parent without prior approval of state insurance regulators at June 30, 2018. To facilitate intercompany cash funding of operations and investments, Tuebor and its parent maintain regulator-approved intercompany borrowing/lending agreements.

Effective February 19, 2016, the Federal Housing Finance Agency (the “FHFA’’), regulator of the FHLB, adopted a final rule amending its regulation regarding the eligibility of captive insurance companies for FHLB membership. According to the final rule, Ladder’s captive insurance company subsidiary, Tuebor may remain as a member of the FHLB through February 19, 2021 (the “Transition Period”). During the Transition Period, Tuebor is eligible to continue to draw new additional advances, extend the maturities of existing advances, and pay off outstanding advances on the same terms as non-captive insurance company FHLB members with the following two exceptions:


1.	New advances (including any existing advances that are extended during the Transition Period) will have maturity dates on or before February 19, 2021; and


2.	The FHLB will make new advances to Tuebor subject to a requirement that Tuebor’s total outstanding advances do not exceed 40% of Tuebor’s total assets.

Tuebor has executed new advances since the effective date of the new rule in the ordinary course of business.

FHLB advances amounted to 27.0% of the Company’s outstanding debt obligations as of June 30, 2018. The Company does not anticipate that the FHFA’s final regulation will materially impact its operations as it will continue to access FHLB advances during the five-year Transition Period.

There is no assurance that the FHFA or the FHLB will not take actions that could adversely impact Tuebor’s membership in the FHLB and continuing access to new or existing advances prior to February 19, 2021.

Senior Unsecured Notes

LCFH issued the 2025 Notes, the 2022 Notes, the 2021 Notes and the 2017 Notes (each as defined below, and collectively, the “Notes”) with Ladder Capital Finance Corporation (“LCFC”), as co-issuers on a joint and several basis. LCFC is a 100% owned finance subsidiary of Series TRS of LCFH with no assets, operations, revenues or cash flows other than those related to the issuance, administration and repayment of the Notes. The Company and certain subsidiaries of LCFH currently guarantee the obligations under the Notes and the indenture. The Company is the general partner of LCFH and, through LCFH and its subsidiaries, operates the Ladder Capital business. As of June 30, 2018, the Company has a 88.0% economic and voting interest in LCFH and controls the management of LCFH as a result of its ability to appoint board members. Accordingly, the Company consolidates the financial results of LCFH and records noncontrolling interest for the economic interest in LCFH held by the Continuing LCFH Limited Partners. In addition, the Company, through certain subsidiaries which are treated as TRSs, is indirectly subject to U.S. federal, state and local income taxes. Other than the noncontrolling interest in the Operating Partnership and federal, state and local income taxes, there are no material differences between the Company’s consolidated financial statements and LCFH’s consolidated financial statements. The Company believes it was in compliance with all covenants of the Notes as of June 30, 2018 and December 31, 2017.

Unamortized debt issuance costs of $12.7 million and $14.1 million are included in senior unsecured notes as of June 30, 2018 and December 31, 2017, respectively, in accordance with GAAP.

2017 Notes

On September 19, 2012, LCFH issued $325.0 million in aggregate principal amount of 7.375% senior notes due October 1, 2017 (the “2017 Notes”). The 2017 Notes required interest payments semi-annually in cash in arrears on April 1 and October 1 of each year, beginning on September 19, 2012. The 2017 Notes were unsecured and subject to incurrence-based covenants, including limitations on the incurrence of additional debt, restricted payments, liens, sales of assets, affiliate transactions and other covenants typical for financings of this type. At any time on or after April 1, 2017, the 2017 Notes were redeemable at the option of the Company, in whole or in part, upon not less than 30 nor more than 60 days’ notice, without penalty. On November 5, 2014, the board of directors authorized the Company to make up to $325.0 million in repurchases of the 2017 Notes from time to time without further approval.

On December 17, 2014, the Company retired $5.4 million of principal of the 2017 Notes for a repurchase price of $5.6 million recognizing a $0.2 million loss on extinguishment of debt. During the year ended December 31, 2016, the Company retired $21.9 million of principal of the 2017 Notes for a repurchase price of $21.4 million, recognizing a $0.3 million net gain on extinguishment of debt after recognizing $(0.2) million of unamortized debt issuance costs associated with the retired debt.

On March 1, 2017, the Company delivered a notice of conditional full redemption to holders of the 2017 Notes, pursuant to which the Company redeemed all outstanding 2017 Notes at 100% of the principal amount thereof (plus any accrued and unpaid interest to the redemption date) as of April 1, 2017. The redemption was conditional on the completion by the Company of a senior notes offering with gross proceeds of not less than $500 million. The Company’s offering of the 2022 Notes, described below, satisfied this condition. On April 3, 2017, the Company retired the remaining $297.7 million of principal of the 2017 Notes for a repurchase price of $297.7 million, recognizing a $53.5 thousand net loss on extinguishment of debt after recognizing $(22.8) thousand of unamortized debt issuance costs associated with the retired debt.

2021 Notes

On August 1, 2014, LCFH issued $300.0 million in aggregate principal amount of 5.875% senior notes due August 1, 2021 (the “2021 Notes”). The 2021 Notes require interest payments semi-annually in cash in arrears on February 1 and August 1 of each year, beginning on February 1, 2015. The 2021 Notes will mature on August 1, 2021. The 2021 Notes are unsecured and are subject to incurrence-based covenants, including limitations on the incurrence of additional debt, restricted payments, liens, sales of assets, affiliate transactions and other covenants typical for financings of this type. At any time on or after August 1, 2020, the 2021 Notes are redeemable at the option of the Company, in whole or in part, upon not less than 30 nor more than 60 days’ notice, without penalty. On February 24, 2016, the board of directors authorized the Company to make up to $100.0 million in repurchases of the 2021 Notes from time to time without further approval. On May 2, 2018, the board of the directors authorized the Company to repurchase any or all of the 2021 Notes from time to time without further approval.

During the year ended December 31, 2016, the Company retired $33.8 million of principal of the 2021 Notes for a repurchase price of $28.2 million, recognizing a $5.1 million net gain on extinguishment of debt after recognizing $(0.4) million of unamortized debt issuance costs associated with the retired debt. As of June 30, 2018, the remaining $266.2 million in aggregate principal amount of the 2021 Notes is due August 1, 2021.

2022 Notes

On March 16, 2017, LCFH issued $500.0 million in aggregate principal amount of 5.250% senior notes due March 15, 2022 (the “2022 Notes”). The 2022 Notes require interest payments semi-annually in cash in arrears on March 15 and September 15 of each year, beginning on September 15, 2017. The 2022 Notes will mature on March 15, 2022. The 2022 Notes are unsecured and are subject to an unencumbered assets to unsecured debt covenant. At any time on or after September 15, 2021, the 2022 Notes are redeemable at the option of the Company, in whole or in part, upon not less than 15 nor more than 60 days’ notice, without penalty. On May 2, 2018, the board of the directors authorized the Company to repurchase any or all of the 2022 Notes from time to time without further approval.

2025 Notes

On September 25, 2017, LCFH issued $400.0 million in aggregate principal amount of 5.250% senior notes due October 1, 2025 (the “2025 Notes”). The 2025 Notes require interest payments semi-annually in cash in arrears on April 1 and October 1 of each year, beginning on April 1, 2018. The 2025 Notes will mature on October 1, 2025. The 2025 Notes are unsecured and are subject to an unencumbered assets to unsecured debt covenant. The Company may redeem the 2025 Notes, in whole, at any time, or from time to time, prior to their stated maturity. The 2025 Notes are redeemable at the option of the Company, in whole or in part, upon not less than 15 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount of the 2025 Notes plus the Applicable Premium (as defined in the indenture governing the 2025 Notes) as of, and accrued and unpaid interest, if any, to the redemption date. On May 2, 2018, the board of the directors authorized the Company to repurchase any or all of the 2025 Notes from time to time without further approval.

Combined Maturity of Debt Obligations

The following schedule reflects the Company’s contractual payments under all borrowings by maturity ($ in thousands):



Period ending December 31,	Borrowings by Maturity(1)

2018 (last 6 months)	$	680,637
2019	1,056,619
2020	506,998
2021	546,801
2022	656,759
Thereafter	1,266,758
Subtotal	$	4,714,572
Debt issuance costs included in senior unsecured notes	(12,658		)
Debt issuance costs included in CLO debt	(4,526		)
Debt issuance costs included in mortgage loan financing	(999		)
Premiums included in mortgage loan financing(2)	6,060
Total	4,702,449


(1)	Contractual payments under current maturities, some of which are subject to extensions. The maturities listed above for 2018 relate to debt obligations that are subject to existing Company controlled extension options for one or more additional one-year periods or could be refinanced by other existing facilities as of June 30, 2018.


(2)	Deferred gains on intercompany loans, secured by our own real estate, sold into securitizations. Premium is amortized as a reduction to interest expense.

The Company’s debt facilities are subject to covenants which require the Company to maintain a minimum level of total equity. Largely as a result of this restriction, approximately $780.0 million of the total equity is restricted from payment as a dividend by the Company at June 30, 2018.