Debt

During the year ended December 31, 2016, Piedmont repaid the outstanding balance of its $125 Million Fixed-Rate Loan and its $42.5 Million Fixed-Rate Loan, utilizing the first available prepayment opportunity without penalty. Separately, Piedmont incurred during 2016 net additional borrowings on its $500 Million Unsecured 2015 Line of Credit of approximately $157.0 million. As of December 31, 2016, Piedmont believes it was in compliance with all financial covenants associated with its debt instruments. See Note 8 for a description of Piedmont’s estimated fair value of debt as of December 31, 2016.

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



Facility ⁽¹⁾	Stated Rate		Effective Rate ⁽²⁾		Maturity		Amount Outstanding as of
Facility ⁽¹⁾	Stated Rate		Effective Rate ⁽²⁾		Maturity		2016		2015
Secured (Fixed)
$125 Million Fixed-Rate Loan	5.50	%	5.50	%	4/1/2016		$	—	$	125,000
$42.5 Million Fixed-Rate Loan	5.70	%	5.70	%	10/11/2016		—		42,525
$140 Million WDC Fixed-Rate Loans ⁽³⁾	5.76	%	5.76	%	11/1/2017		140,000		140,000
$35 Million Fixed-Rate Loan ⁽⁴⁾	5.55	%	3.75	%	9/1/2021		31,583		32,445
$160 Million Fixed-Rate Loan ⁽⁵⁾	3.48	%	3.58	%	7/5/2022		160,000		160,000
Net premium and unamortized debt issuance costs							1,161		1,319
Subtotal/Weighted Average ⁽⁶⁾	4.64	%					332,744		501,289
Unsecured (Variable and Fixed)
$170 Million Unsecured 2015 Term Loan ⁽⁷⁾	LIBOR + 1.125%		1.78	%	5/15/2018		170,000		170,000
$300 Million Unsecured 2013 Term Loan	LIBOR + 1.20%		2.78	%	1/31/2019		300,000		300,000
$500 Million Unsecured 2015 Line of Credit ⁽⁷⁾	LIBOR + 1.00%		1.74	%	6/18/2019	⁽⁸⁾	178,000		21,000
$300 Million Unsecured 2011 Term Loan	LIBOR + 1.15%		3.35	%	1/15/2020		300,000		300,000
$350 Million Unsecured Senior Notes	3.40	%	3.43	%	6/01/2023		350,000		350,000
$400 Million Unsecured Senior Notes	4.45	%	4.10	%	3/15/2024		400,000		400,000
Discounts and unamortized debt issuance costs							(10,269)		(12,779)
Subtotal/Weighted Average ⁽⁶⁾	3.19	%					1,687,731		1,528,221
Total/Weighted Average ⁽⁶⁾	3.43	%					$	2,020,475	$	2,029,510


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


⁽²⁾	Effective rate after consideration of settled or in place interest rate swap agreements and/or issuance premiums or discounts.


⁽³⁾	Collateralized by the 1201 and 1225 Eye Street buildings in Washington, D.C.


⁽⁴⁾	Collateralized by the 5 Wall Street building in Burlington, Massachusetts.


⁽⁵⁾	Collateralized by the 1901 Market Street building in Philadelphia, Pennsylvania.


⁽⁶⁾	Weighted average is based on contractual balance of outstanding debt and the stated or effectively fixed interest rates in the table as of December 31, 2016.


⁽⁷⁾	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 over the selected rate based on Piedmont’s current credit rating.


⁽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.

A summary of the aggregate maturities of Piedmont’s indebtedness as of December 31, 2016, is provided below (in thousands):



2017	$	140,834
2018	170,960
2019	479,014		⁽¹⁾
2020	301,072
2021	27,702
Thereafter	910,000
Total	$	2,029,582


⁽¹⁾	Includes the balance outstanding as of December 31, 2016 of the $500 Million Unsecured 2015 Line of Credit. However, 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.

Piedmont’s weighted-average interest rate as of December 31, 2016 and 2015, for the aforementioned borrowings was approximately 3.43% and 3.55%, respectively. Piedmont made interest payments on all indebtedness, including interest rate swap cash settlements of approximately $69.0 million, $76.4 million, and $72.1 million during the years ended December 31, 2016, 2015, and 2014, respectively.