Sunlight Financial Holdings Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Debt Obligations (Tables)

Debt Obligations (Tables)

9 Months Ended

Sep. 30, 2022

Debt consists of the following:


	Successor
	September 30, 2022											December 31, 2021
	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	9.8	%	0.6	$	20,613

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 Financial LLC, 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.

Activities related to the carrying value of Sunlight’s debt obligations were as follows:


	Successor				Predecessor			Successor			Predecessor

	For the Three Months Ended September 30, 2022		For the Period July 10, 2021 to September 30, 2021			For the Period July 1, 2021 to July 9, 2021			For the Nine Months Ended September 30, 2022			For the Period January 1, 2021 to July 9, 2021

Beginning Balance	$	20,613	$	20,613		$	20,613		$	20,613		$	14,625
Borrowings	—		—			—			—			20,746
Repayments	—		—			—			—			(14,758)
Amortization of deferred financing costs(a)	—		—			—			—			—
Ending Balance	$	20,613	$	20,613		$	20,613		$	20,613		$	20,613

a.Excludes $0.0 million, $0.0 million and $0.0 million amortization of deferred financing costs for the periods July 10, 2021 through September 30, 2021, July 1, 2021 through July 9, 2021, and January 1, 2021 through July 9, 2021, respectively. Sunlight includes amortization of these costs within “Depreciation and Amortization” in the accompanying Unaudited 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, 2022 or December 31, 2021 and did not amortize any such costs for the three or nine months ended September 30, 2022.