Subsequent Events (Notes)

12 Months Ended

Dec. 31, 2016

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

On January 13, 2017, we locked rates on a prospective $250 million private placement of senior unsecured notes (the “Series D Notes”).   The Series D Notes will be unsecured, will pay a fixed interest rate of 4.29% and will be due on or about March 1, 2027.  The Series D Notes are expected to be issued on or about March 1, 2017, subject to customary closing conditions set forth in a note purchase agreement that we expect to enter into on or about March 1, 2017.

As previously disclosed, in March and April 2016, we entered into a $150 million and $100 million forward-starting interest rate swaps, respectively, to reduce the interest rate variability exposure of the projected interest cash outflows under the prospective private placement of the Series D Notes described above.  We settled the forward-starting interest rate swaps on January 18, 2017, resulting in a gain of approximately $10.4 million.  

This gain will be included in accumulated other comprehensive income and will be amortized to interest expense over the life of the Series D Notes.  As a result, net of the settlement of the forward-starting interest rate swap, the fixed interest rate in accordance with GAAP for the Series D Notes is expected to be approximately 3.73% per annum, through maturity.