NOTES PAYABLE AND CREDIT FACILITY

As of June 30, 2014, the Company had $747.7 million of debt outstanding, with a weighted average years to maturity of 6.7 years and weighted average interest rate of 3.8%. The following table summarizes the debt balances as of June 30, 2014 and December 31, 2013 and the debt activity for the six months ended June 30, 2014 (in thousands):



			During the Six Months Ended June 30, 2014
	Balance as of December 31, 2013		Debt Issuance and Assumptions		Repayments			Other ⁽¹⁾		Balance as of June 30, 2014
Fixed rate debt	$	396,946	$	50,214	$	(194	)	$	721	$	447,687
Credit facility	300,000		—		—			—		300,000
Total	$	696,946	$	50,214	$	(194	)	$	721	$	747,687


(1)	Represents fair value adjustment of an assumed mortgage note payable, net of amortization.

As of June 30, 2014, the fixed rate debt outstanding of $447.7 million included $38.7 million of variable rate debt subject to interest rate swap agreements, which had the effect of fixing the variable interest rates per annum through the maturity date of the variable rate debt. In addition, the fixed rate debt includes a mortgage note assumed with a face amount of $25.2 million and a fair value of $26.0 million at the date of assumption. The fixed rate debt has interest rates ranging from 3.35% to 4.98% per annum. The debt outstanding matures on various dates from June 2018 through February 2024. The aggregate balance of gross real estate assets, net of gross intangible lease liabilities, securing the fixed rate debt outstanding was $772.4 million as of June 30, 2014. Each of the mortgage notes payable, comprising the fixed rate debt, is secured by the respective properties on which the debt was placed. Certain notes payable contain covenants, representations, warranties and borrowing conditions customary for similar credit arrangements. These notes also include usual and customary events of default and remedies for agreements of this nature. Based on the Company’s analysis and review of its results of operations and financial condition, the Company believes it was in compliance with the covenants of such notes payable as of June 30, 2014.

The Company has an amended and restated unsecured credit facility (the “Credit Facility”) with JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), which provides for borrowings of up to $900.0 million, which includes a $300.0 million unsecured term loan (the “Term Loan”) and up to $600.0 million in unsecured revolving loans (the “Revolving Loans”). The Credit Facility may be increased up to a maximum of $1.25 billion. The Term Loan matures on August 15, 2018 and the Revolving Loans mature on August 15, 2017; however, the Company may elect to extend the maturity date for the Revolving Loans to August 15, 2018 subject to satisfying certain conditions set forth in the amended and restated unsecured credit agreement among the Company and JPMorgan Chase, as administrative agent (the “Amended and Restated Credit Agreement”). Depending upon the type of loan specified and overall leverage ratio, not to exceed 65% (or 60% on or subsequent to August 15, 2014), the Revolving Loans bear interest at one-month, two-month, three-month or six-month LIBOR multiplied by the statutory reserve rate (the “Eurodollar Rate”) plus an interest rate spread ranging from 1.65% to 2.50% (the “Spread”) or a base rate, ranging from 0.65% to 1.50%, plus the greater of: (a) JPMorgan Chase’s Prime Rate; (b) the Federal Funds Effective Rate (as defined in the Amended and Restated Credit Agreement) plus 0.50%; or (c) the Eurodollar Rate plus 1.00%. The Company executed a swap agreement associated with the Term Loan, which had the effect of fixing the variable interest rate per annum on August 15, 2013 through the maturity date of the loan at 1.713% (the “Swap Rate”). The Term Loan bears interest at the Swap Rate plus the Spread, which totaled 3.36% as of June 30, 2014 based on the Company’s leverage ratio. There were no amounts outstanding under the Revolving Loans as of June 30, 2014. As of June 30, 2014, the Company had $300.0 million outstanding under the Credit Facility and $582.9 million available for borrowing based on the underlying collateral pool of $1.4 billion.

The Amended and Restated Credit Agreement contains provisions with respect to covenants, events of default, borrowing conditions and remedies customary for facilities of this nature. In particular, the Amended and Restated Credit Agreement requires the Company to maintain a minimum consolidated net worth of at least $1.9 billion as of June 30, 2014, a leverage ratio less than 65% prior to August 15, 2014 and 60% from and after August 15, 2014, a fixed charge coverage ratio equal to or greater than 1.50, an unsecured debt to unencumbered asset value ratio less than 65% prior to August 15, 2014 and 60% from and after August 15, 2014, an unsecured debt service coverage ratio equal to or greater than 1.75 and a secured debt ratio less than 50% prior to August 15, 2014, 45% from and after August 15, 2014, but prior to August 15, 2016 and 40% from and after August 15, 2016. The Company believes it was in compliance with the covenants under the Amended and Restated Credit Agreement as of June 30, 2014.