Debt

During the three months ended March 31, 2016, Piedmont repaid the outstanding balance of its $125.0 Million Fixed-Rate Loan utilizing the $500 Million Unsecured 2015 Line of Credit and cash on hand. As such, during the three months ended March 31, 2016, Piedmont incurred net additional working capital borrowings on its $500 Million Unsecured 2015 Line of Credit of approximately $98.0 million. As of March 31, 2016, Piedmont believes it was in compliance with all financial covenants associated with its debt instruments. Finally, see Note 6 for a description of Piedmont’s estimated fair value of debt as of March 31, 2016.

Piedmont made interest payments on all debt facilities, including interest rate swap cash settlements, of approximately $19.3 million and $20.4 million for the three months ended March 31, 2016 and 2015, respectively. Piedmont capitalized interest of approximately $1.2 million and $0.8 million for the three months ended March 31, 2016 and 2015, respectively.

The following table summarizes the terms of Piedmont’s indebtedness outstanding as of March 31, 2016 and December 31, 2015 (in thousands):



Facility	Collateral	Stated Rate⁽¹⁾			Maturity		Amount Outstanding as of
Facility	Collateral	Stated Rate⁽¹⁾			Maturity		March 31, 2016		December 31, 2015
Secured (Fixed)
$125.0 Million Fixed-Rate Loan	Four Property Collateralized Pool	5.50	%		4/1/2016		$	—	$	125,000
$42.5 Million Fixed-Rate Loan	Las Colinas Corporate Center I & II	5.70	%		10/11/2016		42,525		42,525
$140.0 Million WDC Fixed-Rate Loans	1201 & 1225 Eye Street	5.76	%		11/1/2017		140,000		140,000
$35.0 Million Fixed-Rate Loan	5 Wall Street	5.55	%	⁽²⁾	9/1/2021		32,305		32,445
$160.0 Million Fixed-Rate Loan	1901 Market Street	3.48	%	⁽³⁾	7/5/2022		160,000		160,000
Net premium and unamortized debt issuance costs							1,289		1,319
Subtotal/Weighted Average ⁽⁴⁾		4.76	%				376,119		501,289
Unsecured (Variable and Fixed)
$170 Million Unsecured 2015 Term Loan		LIBOR + 1.125%		⁽⁵⁾	5/15/2018		170,000		170,000
$300 Million Unsecured 2013 Term Loan		LIBOR + 1.20%		⁽⁶⁾	1/31/2019		300,000		300,000
$500 Million Unsecured 2015 Line of Credit		LIBOR + 1.00%		⁽⁷⁾	6/18/2019	⁽⁸⁾	119,000		21,000
$300 Million Unsecured 2011 Term Loan		LIBOR + 1.15%		⁽⁹⁾	1/15/2020		300,000		300,000
$350 Million Senior Notes		3.40	%	⁽¹⁰⁾	6/01/2023		350,000		350,000
$400 Million Senior Notes		4.45	%	⁽¹¹⁾	3/15/2024		400,000		400,000
Discounts and unamortized debt issuance costs							(12,201)		(12,779)
Subtotal/Weighted Average ⁽⁴⁾		3.02	%				1,626,799		1,528,221
Total/ Weighted Average ⁽⁴⁾		3.35	%				$	2,002,918	$	2,029,510


⁽¹⁾	Other than the $35 Million Fixed-Rate Loan, all of Piedmont’s outstanding debt as of March 31, 2016 and December 31, 2015 is interest-only.


⁽²⁾	The$35 Million Fixed-Rate Loan has a contractual fixed rate of 5.55% ; however, the amortization of the premium recorded in order to adjust the note to its estimated fair value, results in an effective interest rate of 3.75%.


⁽³⁾	The $160 Million Fixed-Rate Loan has a fixed coupon rate of 3.48%, however, after consideration of the impact of settled interest rate swap agreements, the effective interest rate on this debt is 3.58%.


⁽⁴⁾	Weighted average is based on contractual balance of outstanding debt and interest rates in the table as of March 31, 2016.

⁽⁵⁾

On a periodic basis, Piedmont may select from multiple interest rate options, including the prime rate and various-length LIBOR locks. All LIBOR selections are subject to an additional spread (1.125% as of March 31, 2016) over the selected rate based on Piedmont’s current credit rating. The principal balance as of March 31, 2016 consisted of the 30-day LIBOR rate of 0.44% (subject to the additional spread mentioned above).


⁽⁶⁾	The $300 Million Unsecured 2013 Term Loan has a stated variable rate; however, Piedmont entered into interest rate swap agreements which effectively fix, absent any changes to Piedmont's credit rating, the rate on this facility to 2.78%.

⁽⁷⁾

Piedmont may select from multiple interest rate options with each draw, including the prime rate and various-length LIBOR locks. All LIBOR selections are subject to an additional spread (1.00% as of March 31, 2016) over the selected rate based on Piedmont’s current credit rating. The outstanding balance as of March 31, 2016 consists of 30-day LIBOR draws at an average rate of 0.45% (subject to the additional spread mentioned above).


⁽⁸⁾	Piedmont may extend the term for up to one additional year (through two available six month extensions to a final extended maturity date of June 18, 2020) provided Piedmont is not then in default and upon payment of extension fees.


⁽⁹⁾	The $300 Million Unsecured 2011 Term Loan has a stated variable rate; however, Piedmont has entered into interest rate swap agreements which effectively fix, exclusive of changes to Piedmont's credit rating, the rate on this facility to 2.39% through the original maturity date of November 22, 2016 and 3.35% from November 22, 2016 to January 15, 2020.


⁽¹⁰⁾	The $350 Million Senior Notes have a fixed coupon rate of 3.40%, however, as a result of the issuance of the notes at a discount, Piedmont recognizes an effective interest rate on this debt issuance of 3.45%. After consideration of the impact of settled interest rate swap agreements, in addition to the issuance discount, the effective interest rate on this debt is 3.43%.


⁽¹¹⁾	The $400 Million Senior Notes have a fixed coupon rate of 4.45%, however, as a result of the issuance of the notes at a discount, Piedmont recognizes an effective interest rate on this debt issuance of 4.48%. After consideration of the impact of settled interest rate swap agreements, in addition to the issuance discount, the effective interest rate on this debt is 4.10%.