Quarterly report pursuant to Section 13 or 15(d)

Debt Obligations

v3.21.2
Debt Obligations
9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Debt Obligations Debt Obligations
Debt consists of the following:

Successor Predecessor
September 30, 2021 December 31, 2020
Month Issued Outstanding Face Amount Carrying Value Maximum Facility Size Final Stated Maturity Weighted Average
Carrying Value(a)
Funding Cost Life (Years)
Revolving credit facility(a)
Apr 2021 $ 20,613  $ 20,613  $ 30,000  Apr 2023 5.1  % 1.6 $ 14,625 
a.In March 2016, Sunlight entered into a Loan and Security Agreement with a lender (“Prior Lender”). In May 2019, Sunlight and Prior Lender amended and restated the agreement to provide Sunlight a $15.0 million revolving credit facility (“Prior Facility”). In April 2021, Sunlight paid the Prior Facility in full using proceeds from a Loan and Security Agreement into which Sunlight entered with a Lender and replaced the associated standby letter of credit. Borrowings under the current $30.0 million revolving credit facility, secured by the net assets of Sunlight, bear interest at a per annum rate equal to the sum of (i) a floating rate index and (ii) a fixed margin. The facility includes unused facility costs, and amounts borrowed under this facility are nonrecourse to Sunlight Financial Holdings Inc.. The carrying value at December 31, 2020 reflects Sunlight’s borrowings under the Prior Facility.

Sunlight’s debt obligations are subject to customary loan covenants and event of default provisions, including event of default provisions triggered by a failure to maintain minimum liquidity and earnings as well as maintaining capacity to fund Loans.
Activities — Activities related to the carrying value of Sunlight’s debt obligations were as follows:

Successor Predecessor
For the Period July 10, 2021 to September 30, 2021 For the Period July 1, 2021 to July 9, 2021 For the Three Months Ended September 30, 2020 For the Period January 1, 2021 to July 9, 2021 For the Nine Months Ended September 30, 2020
Beginning Balance $ 20,613  $ 20,613  $ 10,977  $ 14,625  $ 11,811 
Borrowings —  —  3,649  20,746  8,713 
Repayments —  —  (1) (14,758) (5,899)
Amortization of deferred financing costs(a)
—  —  —  —  — 
Ending Balance $ 20,613  $ 20,613  $ 14,625  $ 20,613  $ 14,625 
a.Excludes $0.0 million, $0.0 million, and $0.0 million amortization of deferred financing costs included in “Other Assets” in the accompanying Condensed Consolidated Balance Sheets for the periods July 10, 2021 through September 30, 2021, July 1, 2021 through July 9, 2021, and the three months ended September 30, 2020 as well as $0.0 million and $0.0 million amortization for the period January 1, 2021 through July 9, 2021 and the nine months ended September 30, 2020, respectively. Sunlight includes amortization of these costs within “Depreciation and Amortization” in the accompanying Condensed Consolidated Statements of Operations. Unamortized deferred financing costs upon closing of the Business Combination did not qualify as acquired assets; therefore, Sunlight did not have any such unamortized costs at September 30, 2021 and did not amortize any such costs for the period July 10, 2021 through September 30, 2021.

Maturities — At September 30, 2021, all of Sunlight’s debt obligations contractually mature in 2023.