$79 million: Non-Agency RMBS investments
Invested $79 million to purchase $140 million face amount of Non‐Agency RMBS at an average price of 56.6% of par, with an expected unlevered yield of 7%, and a levered return of 17% assuming 65% financing.
$65 million: Senior Living Property investments
Invested $65 million (including working capital and transaction costs) to purchase eight senior housing assets financed with $88 million of non-recourse debt at a weighted average interest rate of 3.45% with a seven-year maturity.CASH AND RECOURSE FINANCING As of October 23, 2012, the Company’s cash and recourse financings, excluding junior subordinated notes, were as set forth below:
- Unrestricted Cash Available to Invest – The Company had $184 million of unrestricted cash available to invest
- Recourse Financing – The Company had $660 million of financing related to FNMA and FHLMC securities with a value of $695 million and $61 million of financing related to two Non-Agency RMBS bonds with a value of $93 million.
- The average updated IRR with actual performance was 19%, compared to an initial expected IRR of 18%
- Received $29 million of life-to-date total cash flow through the end of September, or 11% of the initial investment of $262 million over an average of 4 months
- Weighted Average Constant Prepayment Rate (“CPR”) for September was 9.5% compared to the Company’s initial CPR projection of 20%