Debt

9 Months Ended

Sep. 30, 2019

The following table summarizes the terms of Piedmont’s indebtedness outstanding as of September 30, 2019 and December 31, 2018 (in thousands):


Facility ⁽¹⁾	Stated Rate		Effective Rate ⁽²⁾			Maturity		Amount Outstanding as of
												September 30, 2019	December 31, 2018
Secured (Fixed)







$35 Million Fixed-Rate Loan ⁽³⁾	5.55	%	3.75	%		9/1/2021		$	29,033	$	29,706
$160 Million Fixed-Rate Loan ⁽⁴⁾	3.48	%	3.58	%		7/5/2022		160,000		160,000
Net premium and unamortized debt issuance costs								418		645
Subtotal/Weighted Average ⁽⁵⁾	3.80	%						189,451		190,351
Unsecured (Variable and Fixed)





Amended and Restated $300 Million Unsecured 2011 Term Loan	LIBOR + 1.00%		3.20	%	⁽⁷⁾	11/30/2021		300,000		300,000
$500 Million Unsecured 2018 Line of Credit ⁽⁶⁾	LIBOR + 0.90%		2.95	%		9/30/2022	⁽⁸⁾	398,000		205,000
$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
$250 Million Unsecured 2018 Term Loan	LIBOR + 1.60%		3.93	%	⁽⁹⁾	3/31/2025		250,000		250,000
Discounts and unamortized debt issuance costs								(8,207)		(9,879)
Subtotal/Weighted Average ⁽⁵⁾	3.58	%						1,689,793		1,495,121
Total/Weighted Average ⁽⁵⁾	3.61	%						$	1,879,244	$	1,685,472

⁽¹⁾Other than the $35 Million Fixed-Rate Loan, all of Piedmont’s outstanding debt as of September 30, 2019 and December 31, 2018 is interest-only until maturity.

⁽²⁾Effective rate after consideration of settled or in-place interest rate swap agreements, issuance premiums/discounts, and/or fair market value adjustments upon assumption of debt.

⁽³⁾Collateralized by the 5 Wall Street building in Burlington, Massachusetts.

⁽⁴⁾Collateralized by the 1901 Market Street building in Philadelphia, Pennsylvania.

⁽⁵⁾Weighted average is based on contractual balance of outstanding debt and the stated or effectively fixed interest rates as of September 30, 2019.

⁽⁶⁾On a periodic basis, Piedmont may select from multiple interest rate options, including the prime rate and various-length LIBOR locks on all or a portion of the principal. All LIBOR selections are subject to an additional spread over the selected rate based on Piedmont’s current credit rating.

⁽⁷⁾The facility has a stated variable rate; however, Piedmont has entered into interest rate swap agreements which effectively fix, exclusive of changes in Piedmont's credit rating, the rate to that shown as the effective rate through the maturity date of the interest rate swap agreements (see Note 5 for more detail).

⁽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 September 29, 2023) provided Piedmont is not then in default and upon payment of extension fees.

⁽⁹⁾The facility 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, $150 million of the principal balance to 4.11% through March 29, 2020, and $100 million of the principal balance to 4.21% from March 30, 2020 through the maturity date of the loan. For the remaining variable portion of the loan, Piedmont may periodically select from multiple interest rate options, including the prime rate and various-length LIBOR locks on all or a portion of the principal. All LIBOR selections are subject to an additional spread over the selected rate based on Piedmont’s current credit rating. The rate presented is the weighted-average rate for the effectively fixed and variable portions of the debt outstanding as of September 30, 2019 (see Note 5 for more detail).

Piedmont made interest payments on all debt facilities, including interest rate swap cash settlements, of approximately $17.8 million and $18.0 million for the three months ended September 30, 2019 and 2018, respectively, and approximately $49.7

million and $48.7 million for the nine months ended September 30, 2019 and 2018, respectively. Also, Piedmont capitalized interest of approximately $0.5 million and $0.4 million for the three months ended September 30, 2019 and 2018, respectively, and approximately $1.6 million and $0.8 million for the nine months ended September 30, 2019 and 2018, respectively. As of September 30, 2019, Piedmont believes it was in compliance with all financial covenants associated with its debt instruments. See Note 6 for a description of Piedmont’s estimated fair value of debt as of September 30, 2019.