Debt

6 Months Ended

Jun. 30, 2020

4. Debt

At June 30, 2020, our consolidated borrowings consisted of the following (amounts in thousands):

	Principal Outstanding			Interest	Current
Loan	June 30, 2020			Rate ⁽¹⁾	Maturity
Revolving credit facility:
Revolving credit facility ⁽²⁾	$	—		L + 130bps	June 2022 ⁽³⁾
Total revolving credit facility		—

Term loan facilities:
2016 term loan facility		100,000		2.67% ⁽⁴⁾	March 2024
2018 term loan facility		150,000		3.96% ⁽⁵⁾	June 2023
Total term loan facilities		250,000
Less: Total unamortized deferred financing fees		(1,216	)
Total term loan facilities, net		248,784

Senior unsecured notes payable:
2017 series A senior notes		95,000		4.05%	May 2027
2017 series B senior notes		50,000		4.15%	May 2029
2017 series C senior notes		30,000		4.30%	May 2032
2019 series A senior notes		85,000		3.73%	September 2029
2019 series B senior notes		100,000		3.83%	September 2031
2019 series C senior notes		90,000		3.98%	September 2034
Total notes payable		450,000
Less: Total unamortized deferred financing fees		(2,952	)
Total notes payable, net		447,048

Mortgage notes payable:
DEA – Pleasanton		15,700		L + 150bps ⁽⁶⁾	October 2023
VA – Golden		9,096		5.00% ⁽⁶⁾	April 2024
MEPCOM – Jacksonville		8,457		4.41% ⁽⁶⁾	October 2025
USFS II – Albuquerque		16,086		4.46% ⁽⁶⁾	July 2026
ICE – Charleston		16,792		4.21% ⁽⁶⁾	January 2027
VA – Loma Linda		127,500		3.59% ⁽⁶⁾	July 2027
CBP – Savannah		12,376		3.40% ⁽⁶⁾	July 2033
Total mortgage notes payable		206,007
Less: Total unamortized deferred financing fees		(1,542	)
Less: Total unamortized premium/discount		159
Total mortgage notes payable, net		204,624

Total debt	$	900,456

(1)

At June 30, 2020, the one-month LIBOR (“L”) was 0.16%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for each of the $450.0 million senior unsecured revolving credit facility (our “revolving credit facility”), the $150.0 million senior unsecured term loan facility (our “2018 term loan facility”) and the $100.0 million senior unsecured term loan facility (our “2016 term loan facility”) is based on the Company’s consolidated leverage ratio, as defined in the respective loan agreements.

(2)

Our revolving credit facility had available capacity of $450.0 million at June 30, 2020 with an accordion feature that permits us to request additional lender commitments for up to $250.0 million of additional capacity, subject to the satisfaction of customary terms and conditions.

(3)

Our revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee.

(4)

Entered into two interest rate swaps with an effective date of March 29, 2017 with an aggregate notional value of $100.0 million to effectively fix the interest rate at 2.67% annually, based on the Company’s consolidated leverage ratio, as defined in our 2016 term loan facility agreement.

(5)

Entered into four interest rate swaps with an effective date of December 13, 2018 with an aggregate notional value of $150.0 million to effectively fix the interest rate at 3.96% annually, based on the Company’s consolidated leverage ratio, as defined in our 2018 term loan facility agreement.

(6)

Effective interest rates are as follows: DEA – Pleasanton 1.80%, VA – Golden 5.03%, MEPCOM – Jacksonville 3.89%, USFS II Albuquerque 3.92%, ICE – Charleston 3.93%, VA – Loma Linda 3.78%, CBP – Savannah 4.12%.

Financial Covenant Considerations

As of June 30, 2020, we were in compliance with all financial and other covenants related to our revolving credit facility, 2016 term loan facility, 2018 term loan facility, senior unsecured notes payable and mortgage notes payable.

Fair Value of Debt

As of June 30, 2020, the carrying value of our 2016 term loan facility approximated fair value. In determining the fair value, we considered the variable interest rate and credit spreads. We deem the fair value of our 2016 term loan facility as a Level 3 measurement.

As of June 30, 2020, the carrying value of our 2018 term loan facility approximated fair value. In determining the fair value, we considered the variable interest rate and credit spreads. We deem the fair value of our 2018 term loan facility as a Level 3 measurement.

As of June 30, 2020, the fair value of our senior unsecured notes payable was determined by discounting future contractual principal and interest payments using prevailing market rates. We deem the fair value measurement of our senior unsecured notes payable instruments as a Level 3 measurement. At June 30, 2020, the fair value of our senior unsecured notes payable was $507.8 million.

As of June 30, 2020, the fair value of our mortgage notes payable was determined by discounting future contractual principal and interest payments using prevailing market rates. We deem the fair value measurement of our mortgage notes payable instruments as a Level 3 measurement. At June 30, 2020, the fair value of our mortgage notes payable was $225.2 million.