Debt

The Company's debt consisted of the following (in thousands):



					Outstanding Borrowings at
	Number of Assets Encumbered	Interest Rate	Maturity Date		September 30, 2019			December 31, 2018
Senior Notes (1)(2)(3)	—	6.00%	June 2025		$	501,778		$	505,322
Mortgage loan (4)	3	4.95%	October 2022		89,909			91,737
Mortgage loan (5)	1	4.94%	October 2022		28,981			29,569
Mortgage loan (1) (6)	3	3.62%	April 2024	(7)	96,000			—
	7				716,668			626,628
Deferred financing costs, net					(891		)	—
Debt, net					$	715,777		$	626,628


(1)	Requires payments of interest only through maturity.


(2)	The Senior Notes (as defined below) include $26.8 million and $30.3 million at September 30, 2019 and December 31, 2018, respectively, related to fair value adjustments that RLJ pushed down to the Company's consolidated financial statements as a result of the Mergers.


(3)	The Company has the option to redeem the Senior Notes beginning June 1, 2020 at a price of 103.0% of face value.


(4)	Includes $1.5 million and $1.9 million at September 30, 2019 and December 31, 2018, respectively, related to fair value adjustments on the mortgage loans that RLJ pushed down to the Company's consolidated financial statements as a result of the Mergers.


(5)	Includes $0.5 million and $0.6 million at September 30, 2019 and December 31, 2018, respectively, related to a fair value adjustment on the mortgage loan that RLJ pushed down to the Company's consolidated financial statements as a result of the Mergers.


(6)	The hotels encumbered by the mortgage loan are cross-collateralized.


(7)	In April 2019, the Company entered into a new mortgage loan that bears interest at LIBOR + 1.60% and provides two one year extension options.

The 6.000% Senior Notes due 2025 (the "Senior Notes") and certain mortgage agreements are subject to customary financial covenants. As of September 30, 2019 and December 31, 2018, the Company was in compliance with all financial covenants. On November 1, 2019, the Company launched a tender offer expected to expire on December 4, 2019, for the entire principal amount of the Senior Notes at par. The Senior Notes were trading at approximately 105% of par at that time.

During the three and nine months ended September 30, 2019, the Company recognized $8.2 million and $23.7 million of interest expense, respectively. During the three and nine months ended September 30, 2018, the Company recognized $8.5 million and $30.2 million of interest expense, respectively.