Notes Payable and Unsecured Credit Facilities

The Parent Company does not have any indebtedness, but guarantees all of the unsecured debt and 15.5% of the secured debt of the Operating Partnership. The Company’s debt outstanding as of December 31, 2014 and 2013 consists of the following (in thousands):



	2014		2013
Notes payable:
Fixed rate mortgage loans	$	518,993	444,245
Variable rate mortgage loans ⁽¹⁾	29,839		37,100
Fixed rate unsecured loans	1,397,525		1,298,352
Total notes payable	1,946,357		1,779,697
Unsecured credit facilities:
Line	—		—
Term Loan	75,000		75,000
Total unsecured credit facilities	75,000		75,000
Total debt outstanding	$	2,021,357	1,854,697

⁽¹⁾ Interest rate swaps are in place to fix the interest rates on these variable rate mortgage loans. See note 10.

Notes Payable

Notes payable consist of mortgage loans secured by properties and unsecured public debt. Mortgage loans may be prepaid, but could be subject to yield maintenance premiums. Mortgage loans are generally due in monthly installments of principal and interest or interest only, whereas, interest on unsecured public debt is payable semi-annually.

The Company is required to comply with certain financial covenants for its unsecured public debt as defined in the indenture agreements such as the following ratios: Consolidated Debt to Consolidated Assets, Consolidated Secured Debt to Consolidated Assets, Consolidated Income for Debt Service to Consolidated Debt Service, and Unencumbered Consolidated Assets to Unsecured Consolidated Debt. As of December 31, 2014, management of the Company believes it is in compliance with all financial covenants for its unsecured public debt.

As of December 31, 2014, the key terms of the Company's fixed rate notes payable are as follows:



		Fixed Interest Rates
	Maturing Through	Minimum	Maximum	Weighted Average
Secured mortgage loans	2032	3.30%	8.40%	5.57%
Unsecured public debt	2024	3.75%	6.00%	5.17%

As of December 31, 2014, the Company had one variable rate mortgage loan, which has an interest rate swap in place for the initial principal balance effectively fixing the interest rate through the maturity of the loan (as discussed in note 10), with key terms as follows ($ in thousands):

Unsecured Credit Facilities

The Company has an unsecured line of credit commitment (the "Line") and an unsecured term loan commitment (the "Term Loan") under separate credit agreements, both with Wells Fargo Bank and a syndicate of other banks.

The Company is required to comply with certain financial covenants as defined in the Line and Term Loan credit agreements, such as Minimum Tangible Net Worth, Ratio of Indebtedness to Total Asset Value ("TAV"), Ratio of Unsecured Indebtedness to Unencumbered Asset Value, Ratio of Adjusted Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”) to Fixed Charges, Ratio of Secured Indebtedness to TAV, Ratio of Unencumbered Net Operating Income to Unsecured Interest Expense, and other covenants customary with this type of unsecured financing. As of December 31, 2014, management of the Company believes it is in compliance with all financial covenants for the Line and Term Loan.

As of December 31, 2014, the key terms of the Line and Term Loan are as follows (dollars in thousands):

Total Capacity

Remaining Capacity

Maturity

Variable Interest Rate ⁽⁶⁾

Fee

Line

800,000

⁽¹⁾

794,096

⁽²⁾

9/4/2016

⁽³⁾

LIBOR plus 117.5 basis points

0.225%

⁽⁴⁾

Term Loan

165,000

⁽⁵⁾

90,000

6/27/2019

LIBOR plus 115 basis points

0.200%

⁽⁷⁾

⁽¹⁾The Company has the ability to increase the Line through an accordion feature to $1.0 billion.

⁽²⁾ Borrowing capacity is reduced by the balance of outstanding borrowings and commitments under outstanding letters of credit.

⁽³⁾Maturity is subject to a one-year extension at the Company's option.

⁽⁴⁾The facility fee is subject to an adjustment based on the higher of the Company's corporate credit ratings from Moody's and S&P.

⁽⁵⁾The Company has the ability to utilize the additional $90.0 million through August 31, 2015.

⁽⁶⁾ Interest rate is subject to Regency maintaining its corporate credit and senior unsecured ratings at BBB.

⁽⁷⁾ Subject to a fee of 0.20% per annum on the undrawn balance.

As of December 31, 2014, scheduled principal payments and maturities on notes payable and unsecured credit facilities were as follows (in thousands):



Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Mortgage Loan Maturities	Unsecured Maturities ⁽¹⁾		Total
2015	$	6,587	75,896	350,000		432,483
2016	6,135		41,442	—		47,577
2017	5,399		116,207	400,000		521,606
2018	4,452		57,358	—		61,810
2019	3,443		106,000	75,000		184,443
Beyond 5 Years	22,647		96,039	650,000		768,686
Unamortized debt premiums (discounts), net	—		7,227	(2,475	)	4,752
Total notes payable	$	48,663	500,169	1,472,525		2,021,357

⁽¹⁾ Includes unsecured public debt and unsecured credit facilities.

Variable Interest Rate

1 month LIBOR plus 150 basis points