Debt

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Debt

6. Debt

Credit Facility. During the second quarter, we amended (the “Amendment”) our senior unsecured bank credit facility with Bank of America, N.A., as administrative agent. The Amendment suspends requirements to comply with all existing financial maintenance covenants under the credit facility for the period beginning July 1, 2020 until the required financial statement reporting date for the third quarter of 2021 (the “Covenant Relief Period”), followed by a phase in period thereafter.

The Amendment also provides for, among other things: an increase of 40 basis points in the interest rate applicable to outstanding borrowings during the Covenant Relief Period, which results in an interest rate based on our current unsecured long-term debt rating of LIBOR plus 130 basis points and LIBOR plus 140 basis points for the revolver and term facilities, respectively; the addition of a permanent LIBOR floor of 15 basis points; the addition of a minimum liquidity covenant requiring a minimum liquidity level of $300 million at the end of each month through the end of the Covenant Relief Period; certain limitations on acquisitions, distributions, repurchases, redemptions and capital expenditures during the Covenant Relief Period; limitations on debt incurrence to only those permitted under our senior notes indenture during the Covenant Relief Period; and a requirement during the Covenant Relief Period to apply the net cash proceeds in excess of $350,000,000 in the aggregate from asset sales and debt issuances (but not equity issuances) as a mandatory prepayment of amounts outstanding under the credit facility, subject to various exceptions.

In connection with the Amendment, we paid a consent fee of 7.5 basis points on the amount of each consenting lender’s commitments under the revolver and term facilities.

During the quarter, we repaid approximately $750 million of borrowings outstanding under the revolver portion of our credit facility. As of June 30, 2020, we had $750 million of available capacity under the revolver portion of the credit facility.