es Payable



						Successor
						December 31, 2019				December 31, 2018
Advance Facilities	Interest Rate	Maturity Date	Collateral	Capacity Amount		Outstanding		Collateral Pledged		Outstanding		Collateral pledged
$325 advance facility	LIBOR+1.5% to 6.5%	August 2021	Servicing advance receivables	$	325	$	224	$	285	$	209	$	284
$250 advance facility	LIBOR+1.5% to 2.6%	December 2020	Servicing advance receivables	250		98		167		218		255
$200 advance facility	LIBOR+2.5%	January 2021	Servicing advance receivables	200		63		125		90		149
$125 advance facility	CP +1.5% to 7.4%	July 2020	Servicing advance receivables	125		37		88		78		89
Advance facilities principal amount						422		$	665	595		$	777
Unamortized debt issuance costs						—				—
Advance facilities, net						$	422			$	595



						Successor
						December 31, 2019					December 31, 2018
Warehouse Facilities	Interest Rate	Maturity Date	Collateral	Capacity Amount		Outstanding			Collateral Pledged		Outstanding			Collateral pledged
$1,500 warehouse facility	LIBOR+1.0%	June 2020	Mortgage loans or MBS	$	1,500	$	759		$	733	$	—		$	—
$1,200 warehouse facility	LIBOR+1.5% to 3.0%	November 2020	Mortgage loans or MBS	1,200		683			724		560			622
$1,000 warehouse facility	LIBOR+1.4% to 2.3%	September 2020	Mortgage loans or MBS	1,000		762			783		137			140
$800 warehouse facility⁽¹⁾	LIBOR+1.5% to 2.9%	April 2020	Mortgage loans or MBS	800		589			656		464			514
$750 warehouse facility	LIBOR+1.4% to 2.8%	September 2020	Mortgage loans or MBS	750		411			425		119			122
$700 warehouse facility	LIBOR+1.3% to 2.2%	November 2020	Mortgage loans or MBS	700		469			488		220			248
$600 warehouse facility	LIBOR+2.3%	February 2021	Mortgage loans or MBS	600		174			202		151			168
$500 warehouse facility	LIBOR+1.5% to 3.0%	April 2020	Mortgage loans or MBS	500		336			349		187			200
$500 warehouse facility⁽²⁾	LIBOR+2.0% to 2.3%	September 2020	Mortgage loans or MBS	500		—			—		290			299
$200 warehouse facility	LIBOR+1.4%	January 2021	Mortgage loans or MBS	200		136			136		—			—
$200 warehouse facility	LIBOR+1.2%	April 2021	Mortgage loans or MBS	200		27			27		18			19
$200 warehouse facility	LIBOR+2.0%	May 2020	Mortgage loans or MBS	200		54			78		103			132
$200 warehouse facility	LIBOR+1.3%	October 2020	Mortgage loans or MBS	200		—			—		—			—
$50 warehouse facility	LIBOR+2.0% to 6.0%	April 2020	Mortgage loans or MBS	50		11			15		—			—
$40 warehouse facility	LIBOR+3.3%	September 2020	Mortgage loans or MBS	40		5			6		—			—
$40 warehouse facility⁽²⁾	LIBOR+3.0%	November 2019	Mortgage loans or MBS	40		—			—		1			2
Warehouse facilities principal amount						4,416			4,622		2,250			2,466
MSR Facilities
$400 warehouse facility	LIBOR+3.5% to 6.1%	June 2021	Mortgage loans or MBS	400		150			945		100			928
$400 warehouse facility	LIBOR+2.3%	December 2020	Mortgage loans or MBS	400		—			200		—			226
$150 warehouse facility⁽¹⁾	LIBOR+2.8%	April 2020	Mortgage loans or MBS	150		—			130		—			430
$50 warehouse facility	LIBOR+4.5%	August 2020	Mortgage loans or MBS	50		10			84		—			102
MSR facilities principal amount						160			1,359		100			1,686
Warehouse and MSR facilities principal amount						4,576			$	5,981	2,350			$	4,152
Unamortized debt issuance costs						(1		)			(1		)
Warehouse facilities, net						$	4,575				$	2,349

Pledged Collateral:
Mortgage loans held for sale and mortgage loans held for investment						$	3,826		$	3,931	$	1,528		$	1,628
Reverse mortgage interests						590			691		722			838
MSR						160			1,359		100			1,686


⁽¹⁾	Total capacity amount for this facility is $800 of which $150 is a sublimit for MSR financing.


⁽²⁾	This facility was terminated during 2019.

Unsecured Senior Notes

Unsecured senior notes consist of the following:



	Successor
	December 31, 2019			December 31, 2018
$950 face value, 8.125% interest rate payable semi-annually, due July 2023	$	950		$	950
$750 face value, 9.125% interest rate payable semi-annually, due July 2026	750			750
$600 face value, 6.500% interest rate payable semi-annually, due July 2021⁽¹⁾	492			592
$300 face value, 6.500% interest rate payable semi-annually, due June 2022⁽¹⁾	206			206
Unsecured senior notes principal amount	2,398			2,498
Unamortized debt issuance costs, premium and discount	(32		)	(39		)
Unsecured senior notes, net	$	2,366		$	2,459


⁽¹⁾	This note was subsequently redeemed in full in February 2020. See Note 26, Subsequent Events, for further information.

The ratios included in the indentures for the unsecured senior notes are incurrence-based compared to the customary ratio covenants that are often found in credit agreements that require a company to maintain a certain ratio. The incurrence-based covenants limit the issuer(s) and restricted subsidiaries ability to incur additional indebtedness, pay dividends, make certain investments, create liens, consolidate, merge or sell substantially all of their assets or enter into certain transactions with affiliates. The indentures contain certain events of default, including (subject, in some cases, to customary cure periods and materiality thresholds) defaults based on (i) the failure to make payments under the applicable indenture when due, (ii) breach of covenants, (iii) cross-defaults to certain other indebtedness, (iv) certain bankruptcy or insolvency events, (v) material judgments and (vi) invalidity of material guarantees.

The indentures for the unsecured senior notes provide that the Company may redeem all or a portion of the notes prior to certain fixed dates by paying a make-whole premium plus accrued and unpaid interest, to the redemption dates. In addition, the Company may redeem all or a portion of the unsecured senior notes at any time on or after certain fixed dates at the applicable redemption prices set forth in the indentures plus accrued and unpaid interest, to the redemption dates. During the year ended December 31, 2019 and the five months ended December 31, 2018, the Company repaid $100 and $364 in principal of outstanding notes, respectively. Additionally, the Company redeemed $658 in principal of outstanding notes during the five months ended December 31, 2018. The Predecessor repurchased $60 in principal amount of outstanding notes during the seven months ended July 31, 2018, resulting in a loss of $2.

Additionally, the indentures provide that on or before certain fixed dates, the Company may redeem (x) in the case of the New Notes, up to 40%, or (y) in the case of the other series of unsecured senior notes, up to 35% of the aggregate principal amount of the unsecured senior notes with the net proceeds of certain equity offerings at fixed redemption prices, plus accrued and unpaid interest, to the redemption dates, subject to compliance with certain conditions.

As of December 31, 2019, the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows:



Year Ending December 31,	Amount
2020	$	—
2021⁽¹⁾	492
2022⁽¹⁾	206
2023	950
2024	—
Thereafter	750
Total unsecured senior notes principal amount	$	2,398


⁽¹⁾	This note was subsequently redeemed in full in February 2020. See Note 26, Subsequent Events, for further information.

Other Nonrecourse Debt

Other nonrecourse debt consists of the following:



						Successor
						December 31, 2019		December 31, 2018
	Issue Date	Maturity Date	Class of Note	Collateral Amount		Outstanding		Outstanding
Participating interest financing⁽¹⁾	—	—	—	$	—	$	4,284	$	5,607
Securitization of nonperforming HECM loans
Trust 2019-2	November 2019	November 2029	A, M1, M2, M3, M4, M5	337		333		—
Trust 2019-1	June 2019	June 2029	A, M1, M2, M3, M4, M5	315		302		—
Trust 2018-3	November 2018	November 2028	A, M1, M2, M3, M4, M5	226		209		326
Trust 2018-2	August 2018	August 2028	A, M1, M2, M3, M4, M5	168		148		250
Trust 2018-1⁽²⁾	March 2018	March 2028	A, M1, M2, M3, M4, M5	—		—		284
Trust 2017-2⁽²⁾	September 2017	September 2027	A, M1, M2	—		—		231
Nonrecourse Debt - Legacy⁽³⁾	November 2009	October 2039	A	—		—		29
Other nonrecourse debt principal amount						5,276		6,727
Unamortized debt issuance costs, premium and discount						10		68
Other nonrecourse debt, net						$	5,286	$	6,795


⁽¹⁾	Amounts represent the Company’s participating interest in GNMA HMBS securitized portfolios.


⁽²⁾	As discussed in Note 6, Reverse Mortgage Interests, Net, Trust 2017-2 and Trust 2018-1 were collapsed and the related debt extinguished during the year ended December 31, 2019.


⁽³⁾	As discussed in Note 7, Mortgage Loans Held for Sale and Investment, Trust 2009-A, the Company’s legacy portfolio, was collapsed and the related debt was extinguished in September 2019.

Participating Interest Financing

Participating interest financing represents the obligation of HMBS pools to third-party security holders. The Company issues HMBS in connection with the securitization of borrower draws and accrued interest on HECM loans. Proceeds are received in exchange for securitized advances on the HECM loan amounts transferred to GNMA, and the Company retains a beneficial interest (referred to as a “participating interest”) in the securitization trust in which the HECM loans and HMBS obligations are held and assume both issuer and servicer responsibilities in accordance with GNMA HMBS program guidelines. Monthly cash flows generated from the HECM loans are used to service the HMBS obligations. The interest rate is based on the underlying HMBS rate with a range of 1.9% to 5.7%.

Securitizations of Nonperforming HECM Loans

From time to time, the Company securitizes its interests in non-performing reverse mortgages. The transactions provide investors with the ability to invest in a pool of both non-performing HECM loans secured by one-to-four-family residential properties and a pool of REO properties acquired through foreclosure of a deed in lieu of foreclosure in connection with HECM loans that are covered by FHA insurance. The transactions provide the Company with access to liquidity for the non-performing HECM loan portfolio, ongoing servicing fees, and potential residual returns. The transactions are structured as secured borrowings with the reverse mortgage loans included in the consolidated balance sheets as reverse mortgage interests and the related financing included in other nonrecourse debt. Interest is accrued at a rate of 2.3% to 6.0% on the outstanding securitized notes and recorded as interest expense in consolidated statements of operations. The HECM securitizations are callable with expected weighted average lives of less than one to three years. The Company may re-securitize the previously called loans from earlier HECM securitizations to achieve a lower cost of funds.

Nonrecourse Debt – Legacy Assets

During November 2009, the Predecessor completed the securitization of approximately $222 of Asset-Backed Securities (“ABS”), which was accounted for as a secured borrowing. This structure resulted in the Company carrying the securitized mortgage loans in its consolidated balance sheets and recognizing the asset-backed certificates acquired by third parties. The principal and interest on these notes are paid using the cash flows from the underlying mortgage loans, which serve as collateral for the debt. The interest rate paid on the outstanding securities is 7.5%, which is subject to an available funds cap. The trust was called, and related debt was extinguished in September 2019. See Note 7, Mortgage Loans Held for Sale and Investment, for further information. The total outstanding principal balance on the underlying mortgage loans serving as collateral for the debt was approximately $160 at December 31, 2018. The UPB on the outstanding loans was $29 at December 31, 2018 and the carrying value of the nonrecourse debt was $29.

Financial Covenants

The Company’s credit facilities contain various financial covenants which primarily relate to required tangible net worth amounts, liquidity reserves, leverage requirements, and profitability requirements, which are measured at the Company’s operating subsidiary, Nationstar Mortgage LLC. The Company was in compliance with its required financial covenants as of December 31, 2019.