FOURTH QUARTER 2012 INVESTMENT ACTIVITY
$145 million of unrestricted cash invested primarily in the following:
Non-Agency RMBS investments
Invested $87 million to purchase $134 million face amount of Non‐Agency RMBS at an average price of 64.5% of par, with an expected unlevered yield of 6%, and a levered return of 12% assuming 65% financing.
Bank Loan investments
Invested $18 million to purchase $52 million face amount of two bank loans in an existing investment at an average price of 34.9% of par.
Senior Living Property investments
Invested $16 million (including working capital and transaction costs) to purchase four senior housing assets in two portfolios of $48 million financed with $32 million of non-recourse debt at a weighted average interest rate of 4.75% with a five-year maturity.
Non-Agency securities issued by Newcastle
10 million to purchase $12 million face amount of senior Non-Agency securities issued by Newcastle at an average price of 82.0% of par
SUBSEQUENT EVENTS & INVESTMENT ACTIVITY
$780 million of common equity raised:
Since December 31, 2012, the Company completed the sale of approximately 80.5 million shares of its common stock for gross proceeds of approximately $780 million.
$660 million of unrestricted cash invested or committed to invest primarily in the following:
Excess MSRs investments
Invested or committed to invest approximately $320 million to purchase a 33% interest in Excess MSRs on four portfolios with a total of approximately $215 billion unpaid principal balance (“UPB”) of residential mortgage loans. The Company expects the four investments to generate an average 16% IRR and $635 million of total cash flow, or 2.0x its initial investment.
Invested $27 million to purchase a 33% interest in the Excess MSRs on a $13 billion UPB of residential mortgage loan portfolio. The Company expects the investment to generate a 16% IRR and $57 million of total cash flow, or 2.1x its initial investment.