|JONES LANG LASALLE INC filed this Form 10-Q on 11/06/2017|
September 30, 2017
December 31, 2016
($ in millions)
LIBOR plus 1.4%, expires September 24, 20181
LIBOR plus 1.35%, expires September 29, 20182
LIBOR plus 1.5%, expires August 31, 2018
Fannie Mae ASAP program, LIBOR plus 1.30% to 1.45%
Gross warehouse facilities
Debt issuance costs
Total warehouse facilities
1 In the third quarter of 2017, we extended the Warehouse facility; the facility originally had a maximum capacity of $275.0 million and a maturity date of September 25, 2017.
2 In the third quarter of 2017, we extended the Warehouse facility; the facility originally had a maximum capacity of $250.0 million and a maturity date of September 22, 2017.
We have lines of credit established for the sole purpose of funding our Warehouse receivables. These lines of credit exist with financial institutions and are secured by the related warehouse receivables. Pursuant to these warehouse facilities, we are required to comply with certain financial covenants regarding (1) minimum net worth, (2) minimum servicing-related loans, and (3) minimum adjusted leverage ratios. We remained in compliance with all covenants under our Warehouse facilities as of September 30, 2017.
As a supplement to our lines of credit, we have an uncommitted facility with Fannie Mae under its As Soon As Pooled ("ASAP") funding program. After origination, we sell certain warehouse receivables to Fannie Mae; the proceeds are used to repay the original lines of credit used to fund the loan. The ASAP funding program requires us to repurchase these loans, generally within 45 days, followed by an immediate, ultimate, sale back to Fannie Mae. The difference between the price paid upon the original sale to Fannie Mae and the ultimate sale reflects a discount representative of borrowing costs.
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