XML 31 R17.htm IDEA: XBRL DOCUMENT v3.22.2.2
Secured and Unsecured Debt of the Operating Partnership
 9 Months Ended
Sep. 30, 2022
Kilroy Realty L.P.  
Debt Instrument [Line Items]  
Secured and Unsecured Debt of the Operating Partnership Secured and Unsecured Debt of the Operating Partnership
The Company generally guarantees all of the Operating Partnership’s unsecured debt obligations including the unsecured revolving credit facility and all of the unsecured senior notes.

Unsecured Revolving Credit Facility

The following table summarizes the balance and terms of our unsecured revolving credit facility as of September 30, 2022 and December 31, 2021:
September 30, 2022December 31, 2021
(in thousands)
Outstanding borrowings$— $— 
Remaining borrowing capacity
1,100,000 1,100,000 
Total borrowing capacity (1)
$1,100,000 $1,100,000 
Interest rate (2)
4.04 %1.00 %
Facility fee-annual rate (3)
0.200%
Maturity dateJuly 2025
________________________
(1)We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $500.0 million under an accordion feature under the terms of the unsecured revolving credit facility.
(2)Our unsecured revolving credit facility interest rate was calculated based on the contractual rate of LIBOR plus 0.900% as of September 30, 2022 and December 31, 2021.
(3)Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of September 30, 2022 and December 31, 2021, $5.8 million and $7.3 million of unamortized deferred financing costs, respectively, which are included in prepaid expenses and other assets, net on our consolidated balance sheets, remained to be amortized through the respective maturity dates presented of our unsecured revolving credit facility.

The Company intends to borrow under the unsecured revolving credit facility from time to time for general corporate purposes, to finance development and redevelopment expenditures, to fund potential acquisitions and to potentially repay long-term debt and to supplement cash balances given uncertainties and volatility in market conditions.

Debt Covenants and Restrictions

The unsecured revolving credit facility, the unsecured senior notes, including the private placement notes, and certain other secured debt arrangements contain covenants and restrictions requiring us to meet certain financial ratios and reporting requirements. Some of the more restrictive financial covenants include a maximum ratio of total debt to total asset value, a minimum fixed-charge coverage ratio, a minimum unsecured debt ratio and a minimum unencumbered asset pool debt service coverage ratio. Noncompliance with one or more of the covenants and restrictions could result in the full principal balance of the associated debt becoming immediately due and payable. We believe we were in compliance with all of our debt covenants as of September 30, 2022.

Debt Maturities

The following table summarizes the stated debt maturities and scheduled amortization payments for all outstanding debt as of September 30, 2022:

Year
(in thousands)
Remaining 2022$1,409 
20235,775 
2024431,006 
2025406,246 
2026401,317 
2027249,125 
Thereafter2,600,000 
Total aggregate principal value (1)
$4,094,878 
________________________ 
(1)Includes gross principal balance of outstanding debt before the effect of the following at September 30, 2022: $20.4 million of unamortized deferred financing costs for the unsecured senior notes and secured debt and $6.6 million of unamortized discounts for the unsecured senior notes.
Capitalized Interest and Loan Fees

The following table sets forth gross interest expense, including debt discount and deferred financing cost amortization, net of capitalized interest, for the three and nine months ended September 30, 2022 and 2021. The interest expense capitalized was recorded as a cost of development and redevelopment and increased the carrying value of undeveloped land and construction in progress.

Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(in thousands)
Gross interest expense$39,659 $39,552 $118,995 $118,257 
Capitalized interest and deferred financing costs (19,677)(23,447)(58,267)(58,428)
Interest expense$19,982 $16,105 $60,728 $59,829