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Debt
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Debt Debt
As noted above, in conjunction with the acquisition of 1180 Peachtree Street during the year ended December 31, 2022, Piedmont entered into a Loan Assignment and Assumption Agreement for an existing $197 million fixed rate mortgage secured by the property (the “$197 Million Fixed Rate Mortgage”). The $197 Million Fixed Rate Mortgage has a remaining term of approximately six years and a final maturity date of October 1, 2028. Interest only at a fixed rate of 4.10% per annum is payable until October 1, 2023, at which point the loan becomes amortizing.

During the year ended December 31, 2022, Piedmont also entered into a new $200 million, floating-rate, unsecured term loan facility (the “$200 Million Unsecured 2022 Term Loan Facility”). The $200 Million Unsecured 2022 Term Loan Facility has a maturity date of December 16, 2024, and Piedmont may extend the term for six months through an available extension provided Piedmont is not then in default and all representations and warranties are true and correct in all material respects and upon payment of applicable extension fees. Piedmont may prepay the loan in whole or in part, at any time without premium or penalty. The stated interest rate spread over Adjusted SOFR can vary from 0.80% to 1.65% based upon the then current credit rating of Piedmont. As of December 31, 2022, the applicable interest rate spread on the loan was 1.00%.

During the year ended December 31, 2022, Piedmont amended and restated its $500 Million Unsecured 2018 Line of Credit which had an initial maturity date of September 30, 2022. As amended and restated, the capacity of the line of credit has been expanded to $600 million (the "$600 Million Unsecured 2022 Line of Credit"). The term of the new $600 Million Unsecured 2022 Line of Credit was extended to June 30, 2026, and Piedmont may extend the term for up to one additional year (through two available six-month extensions) provided Piedmont is not then in default and all representations and warranties are true and correct in all material respects and upon payment of applicable extension fees. Under certain terms of the agreement, Piedmont may increase the new facility by up to an additional $500 million, to an aggregate size of $1.1 billion, provided that no existing bank has any obligation to participate in such increase. Piedmont paid customary arrangement and upfront fees to the lenders in connection with the closing of the new facility.

The $600 Million Unsecured 2022 Line of Credit has the option to bear interest at varying levels (determined with reference to the greater of the credit rating for Piedmont or Piedmont OP) based on the Adjusted SOFR Rate, Adjusted Daily Effective SOFR Rate, or the Base Rate, all as defined in the facility agreement. Further, the Base Rate is defined as the greater of the prime rate, the federal funds rate plus 0.5%, or the Adjusted SOFR Rate for a one-month period plus 1.0%. The term SOFR loans are available with interest periods selected by Piedmont of one, three, or six months. The stated interest rate spread over Adjusted SOFR can vary from 0.725% to 1.4% based upon the greater of the then current credit rating of Piedmont or Piedmont OP. As of December 31, 2022, based upon Piedmont’s current BBB credit rating, the current stated Adjusted SOFR spread on the loan is 0.85%.
The following table summarizes the terms of Piedmont’s indebtedness outstanding as of December 31, 2022 and 2021, including net discounts/premiums and unamortized debt issuance costs (in thousands):

Facility (1)
Stated Rate
Effective Rate (2)
MaturityAmount Outstanding as of
20222021
Secured (Fixed)
$197 Million Fixed Rate Mortgage
4.10 %10/1/2028$197,000 $— 
197,000 — 
Unsecured (Variable and Fixed)
$350 Million Unsecured Senior Notes due 2023
3.40 %3.43 %6/01/2023
(3)
350,000 350,000 
$200 Million Unsecured 2022 Term Loan Facility
SOFR + 1.00%
5.42 %
(4)
12/16/2024
(5)
200,000 — 
$400 Million Unsecured Senior Notes due 2024
4.45 %4.10 %3/15/2024400,000 400,000 
$250 Million Unsecured 2018 Term Loan
LIBOR + 0.95%
4.54 %3/31/2025250,000 250,000 
$600 Million Unsecured 2022 Line of Credit(6)
SOFR + 0.85%
— %
(4)
6/30/2026
(7)
— 290,000 
$300 Million Unsecured Senior Notes due 2030
3.15 %3.90 %8/15/2030300,000 300,000 
$300 Million Unsecured Senior Notes due 2032
2.75 %2.78 %4/1/2032300,000 300,000 
Discounts and unamortized debt issuance costs
(13,319)(12,210)
Subtotal/Weighted Average(8)
3.87 %1,786,681 1,877,790 
Total/Weighted Average(8)
3.89 %$1,983,681 $1,877,790 

(1)All of Piedmont’s outstanding debt as of December 31, 2022 is interest-only until maturity, except for the $197 Million Fixed Rate Mortgage, secured by 1180 Peachtree Street, which will begin amortizing principal in October 2023.
(2)Effective rate after consideration of settled or in-place interest rate swap agreements and issuance discounts.
(3)Piedmont currently intends to repay the $350 Million Unsecured Senior Notes due 2023 using proceeds from a new $215 million term loan (see Note 17), and a combination of cash on hand, proceeds from select property dispositions, and borrowings under our $600 Million Unsecured 2022 Line of Credit.
(4)On a periodic basis, Piedmont may select from multiple interest rate options, including the prime rate and various-length SOFR locks on all or a portion of the principal. All SOFR selections are subject to an additional spread over the selected rate based on Piedmont’s current credit rating.
(5)Piedmont may extend the term for six additional months to a final extended maturity date of June 18, 2025, provided Piedmont is not then in default and all representations and warranties are true and correct in all material respects and upon payment of extension fees.
(6)The $500 Million Unsecured 2018 Line of Credit was amended and restated during the year ended December 31, 2022 and is now reflected as the $600 Million Unsecured 2022 Line of Credit. The $500 Million Unsecured 2018 Line of Credit had a stated rate of LIBOR + 0.90% as of December 31, 2021.
(7)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 30, 2027) provided Piedmont is not then in default and all representations and warranties are true and correct in all material respects and upon payment of extension fees.
(8)Weighted average is based on contractual balance of outstanding debt and the stated or effectively fixed interest rates as of December 31, 2022.
A summary of Piedmont's consolidated principal outstanding for aggregate debt maturities of its indebtedness as of December 31, 2022, is provided below (in thousands):

2023$350,000 
2024600,000 
2025250,000 
2026— 
2027— 
Thereafter797,000 
Total$1,997,000 

Piedmont’s weighted-average interest rate as of December 31, 2022 and 2021, for the aforementioned borrowings was approximately 3.89% and 2.93%, respectively. Piedmont made interest payments on all indebtedness, including interest rate swap cash settlements, of approximately $66.1 million, $49.4 million, and $50.7 million during the years ended December 31, 2022, 2021, and 2020, respectively. Also, Piedmont capitalized interest of approximately $4.2 million, $3.7 million, and $1.0 million for the years ended December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022, 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 December 31, 2022.