Schedule of debt obligations |
The Company’s debt obligations were as follows ($ in thousands): | | | | | | | | | | | | | Carrying Value as of | | Stated | | Scheduled | | | September 30, 2021 | | December 31, 2020 | | Interest Rates | | Maturity Date | Secured credit facilities and mortgages: | | | | | | | | | | | Revolving Credit Facility | | $ | — | | $ | — | | LIBOR + 2.00 | % (1) | September 2022 | Senior Term Loan | | | 491,875 | | | 491,875 | | LIBOR + 2.75 | % (2) | June 2023 | Mortgages collateralized by net lease assets | | | 701,541 | | | 721,075 | | 1.63% - 7.19 | % (3) | | Total secured credit facilities and mortgages(4) | | | 1,193,416 | | | 1,212,950 | | | | | Unsecured notes: | | | | | | | | | | | 3.125% senior convertible notes(5) | | | 287,500 | | | 287,500 | | 3.125 | % | September 2022 | 4.75% senior notes(6) | | | 775,000 | | | 775,000 | | 4.75 | % | October 2024 | 4.25% senior notes(7) | | | 550,000 | | | 550,000 | | 4.25 | % | August 2025 | 5.50% senior notes(8) | | | 400,000 | | | 400,000 | | 5.50 | % | February 2026 | Total unsecured notes | | | 2,012,500 | | | 2,012,500 | | | | | Other debt obligations: | | | | | | | | | | | Trust preferred securities | | | 100,000 | | | 100,000 | | LIBOR + 1.50 | % | October 2035 | Total debt obligations | | | 3,305,916 | | | 3,325,450 | | | | | Debt discounts and deferred financing costs, net(9) | | | (23,318) | | | (38,475) | | | | | Total debt obligations, net(10) | | $ | 3,282,598 | | $ | 3,286,975 | | | | |
(1) | The Revolving Credit Facility bears interest at the Company’s election of either: (i) a base rate, which is the greater of (a) prime, (b) federal funds plus 0.50% or (c) LIBOR plus 1.0% and subject to a margin ranging from 1.00% to 1.50%; or (ii) LIBOR subject to a margin ranging from 2.00% to 2.50%. At maturity, the Company may convert outstanding borrowings to a one year term loan which matures in quarterly installments through September 2023. |
(2) | The loan bears interest at the Company’s election of either: (i) a base rate, which is the greater of (a) prime, (b) federal funds plus 0.50% or (c) LIBOR plus 1.0% and subject to a margin of 1.75%; or (ii) LIBOR subject to a margin of 2.75%. |
(3) | As of September 30, 2021, the weighted average interest rate of these loans is 4.4%, inclusive of the effect of interest rate swaps. |
(4) | As of September 30, 2021, $2.0 billion net carrying value of assets served as collateral for the Company’s secured debt obligations. |
(5) | The Company’s 3.125% senior convertible fixed rate notes due September 2022 (“3.125% Convertible Notes”) are convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding September 15, 2022. The conversion rate as of September 30, 2021 was 71.5797 shares per $1,000 principal amount of 3.125% Convertible Notes, which equals a conversion price of $13.97 per share. The conversion rate is subject to adjustment from time to time for specified events. Upon conversion, the Company will pay or deliver, as the case may be, a combination of cash and shares of its common stock. As of December 31, 2020, the carrying value of the 3.125% Convertible Notes was $275.1 million, net of fees, and the unamortized discount of the 3.125% Convertible Notes was $10.2 million, net of fees. Upon the adoption of ASU 2020-06 on January 1, 2021, the Company reclassed the unamortized discount to shareholders equity (refer to Note 3). During the three months ended September 30, 2021 and 2020, the Company recognized $2.2 million and $2.2 million, respectively, of contractual interest and during the three months ended September 30, 2020, the Company recognized $1.3 million of discount amortization on the 3.125% Convertible Notes. During the nine months ended September 30, 2021 and 2020, the Company recognized $6.7 million and $6.7 million, respectively, of contractual interest and during the nine months ended September 30, 2020, the Company recognized $3.9 million of discount amortization on the 3.125% Convertible Notes. The effective interest rate for the three and nine months ended September 30, 2020 was 5.2%. |
(6) | The Company can prepay these senior notes without penalty beginning July 1, 2024. |
(7) | The Company can prepay these senior notes without penalty beginning May 1, 2025. |
(8) | The Company can prepay these senior notes without penalty beginning August 15, 2024. |
(9) | On January 1, 2021, the Company adopted ASU 2020-06 and reclassed $10.0 million of debt discount and unamortized fees from the 3.125% Convertible Notes to shareholders’ equity on the Company’s consolidated balance sheet (refer to Note 3). |
(10) | The Company capitalized interest relating to development activities of $0.2 million and $0.5 million during the three months ended September 30, 2021 and 2020, respectively, and $0.7 million and $1.6 million during the nine months ended September 30, 2021 and 2020, respectively. |
|
Schedule of future scheduled maturities of outstanding debt obligations |
| | | | | | | | | | | | Unsecured Debt | | Secured Debt | | Total | 2021 (remaining three months) | | $ | — | | $ | 95,495 | | $ | 95,495 | 2022 | | | 287,500 | | | 95,324 | | | 382,824 | 2023 | | | — | | | 491,875 | | | 491,875 | 2024 | | | 775,000 | | | — | | | 775,000 | 2025 | | | 550,000 | | | 269,780 | | | 819,780 | Thereafter | | | 500,000 | | | 240,942 | | | 740,942 | Total principal maturities | | | 2,112,500 | | | 1,193,416 | | | 3,305,916 | Unamortized discounts and deferred financing costs, net | | | (18,426) | | | (4,892) | | | (23,318) | Total debt obligations, net | | $ | 2,094,074 | | $ | 1,188,524 | | $ | 3,282,598 |
|