• Filing Date: 2018-08-20
  • Form Type: 10-Q
  • Description: Quarterly report
v3.10.0.1
White Eagle Revolving Credit Facility (Tables)
6 Months Ended
Jun. 30, 2018
Debt Instrument [Line Items]  
Schedule of Interest Expense on Facility
Total interest expense on the facility during the three months and six months ended June 30, 2018 and 2017 paid through the waterfall distribution from maturity proceeds or paid directly by White Eagle was as follows (in thousands):

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Interest paid through waterfall
$
5,685

 
$
4,282

 
$
10,872

 
$
6,694

Interest paid by White Eagle

 

 

 
782

Participation interest paid through waterfall

 

 
340

 

Total interest expense
$
5,685

 
$
4,282

 
$
11,212

 
$
7,476

Revolving Credit Facility | White Eagle  
Debt Instrument [Line Items]  
Schedule of Payouts Based on LTV
After distributions for premium payments, fees to service providers and payments of interest, a percentage of the collections from policy proceeds are to be paid to the Company, which will vary depending on the then LTV ratio as illustrated below where the valuation is determined by the lenders:
LTV
 
Premiums, Interest & Other Fees
 
Principal
 
Distribution to White Eagle - 55%
 
Lender Participation - 45%
N/A
 
100%
 
—%
 
—%
 
—%
>65%
 
N/A
 
100%
 
—%
 
—%
50-65%
 
N/A
 
70%
 
16.5%
 
13.5%
35-50%
 
N/A
 
55%
 
24.8%
 
20.3%
0-35%
 
N/A
 
45%
 
30.3%
 
24.8%
Schedule of Distribution of Proceeds
For the three months and six months ended June 30, 2018, approximately $23.6 million and $31.4 million, respectively, of proceeds received from the maturity of policies pledged under the White Eagle Revolving Credit Facility, were distributed through the waterfall in the following stages of priority (in thousands):

 
Three Months Ended
June 30, 2018
 
Six Months Ended June 30, 2018
 
 
Clause
Amount
 
Use of Proceeds
First:
$
83

 
$
167

 
Custodian and Securities Intermediary
Second:

 

 
White Eagle - Ongoing Maintenance Cost Reimbursable
Third:

 

 
Administrative Agent - Protective Advances
Fourth:
7

 
17

 
Administrative Agent - Administrative Agent Fee and Legal Expense Reimbursement
Fifth:
5,685

 
10,872

 
Administrative Agent - Accrued and Unpaid Interest
Sixth:
17,780

 
19,543

 
Administrative Agent - Required Amortization
Seventh:

 

 
Administrative Agent - Amortization Shortfall
Eighth:

 
340

 
Administrative Agent - Participation Interest
Ninth:

 

 
Reserved - $0
Tenth:

 

 
Administrative Agent Aggregate Unpaid Participation Interest
Eleventh:

 

 
Administrative Agent - Remaining Available Amount After Clause First to Tenth
Twelfth:

 

 
Wilmington Trust - Custodian and Securities Intermediary - Unpaid Fees
Thirteenth:

 
416

 
Borrower - Any Remaining Available Amount After Clause First to Twelfth
Total Distributions
$
23,555

 
$
31,355

 
 


Approximately $7.8 million of the amount distributed during the six months ended June 30, 2018 was from maturity proceeds collected during the year ended December 31, 2017.


For the three months and six months ended June 30, 2017, approximately $10.0 million and $12.5 million, respectively, of proceeds received from the maturity of policies pledged under the White Eagle Revolving Credit Facility, were distributed through the waterfall in the following stages of priority (in thousands):

 
Three Months Ended June 30, 2017
 
Six Months Ended June 30, 2017
 
 
Clause
Amount
 
Use of Proceeds
First:
$
85

 
$
144

 
Custodian and Securities Intermediary
Second:

 

 
White Eagle - Ongoing Maintenance Cost Reimbursable
Third:

 

 
Administrative Agent - Protective Advances
Fourth:
13

 
23

 
Administrative Agent - Administrative Agent Fee and Legal Expense Reimbursement
Fifth:
4,282

 
6,694

 
Administrative Agent - Accrued and Unpaid Interest
Sixth:
5,656

 
5,656

 
Administrative Agent - Required Amortization
Seventh:

 

 
Administrative Agent - Amortization Shortfall
Eighth:

 

 
Administrative Agent - Participation Interest
Ninth:

 

 
Reserved - $0
Tenth:

 

 
Administrative Agent Aggregate Unpaid Participation Interest
Eleventh:

 

 
Administrative Agent - Remaining Available Amount After Clause First to Tenth
Twelfth:

 

 
Wilmington Trust - Custodian and Securities Intermediary - Unpaid Fees
Thirteenth:

 

 
Borrower - Any Remaining Available Amount After Clause First to Twelfth
Total Distributions
$
10,036

 
$
12,517

 
 
Schedule of Reconciliation of Proceeds Distributed
The below is a reconciliation of proceeds collected by the White Eagle Revolving Credit Facility and distributed through the waterfall as shown above (in thousands):
Face value collected in 2017 and distributed in 2018
$
7,759

Face value collected in prior quarter and distributed in current quarter
23,345

Face value collected in current quarter
12,700

Other collections*
358

Total waterfall collection
44,162

Less: Total waterfall distribution during the six months ended June 30, 2018
(31,355
)
Total to be distributed subsequent to June 30, 2018
12,807

 
 
*Includes refund of premiums and interest earned on maturity proceeds

Schedule of Advances For Premium Payments and Fees
During the three months and six months ended June 30, 2018 and 2017, advances for premium payments and fees to service providers amounted to (in thousands):

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Amount drawn for premium payments
$
22,653

 
$
21,490

 
$
44,786

 
$
42,249

Amount drawn in fees to service providers
642

 
626

 
1,281

 
1,150

Total amount drawn
$
23,295

 
$
22,116

 
$
46,067

 
$
43,399