OTES PAYABLE

The following table summarizes the terms of notes payable outstanding at December 31, 2015 and 2014 (in thousands):



Description	Interest Rate	Maturity	2015		2014
Post Oak Central mortgage note	4.26%	2020	$	181,770	$	185,109
The American Cancer Society Center mortgage note	6.45%	2017	129,342		131,083
Promenade mortgage note	4.27%	2022	108,203		110,946
191 Peachtree Tower mortgage note	3.35%	2018	100,000		100,000
Credit Facility, unsecured	1.53%	2019	92,000		140,200
816 Congress mortgage note	3.75%	2024	85,000		85,000
Meridian Mark Plaza mortgage note	6.00%	2020	24,978		25,408
The Points at Waterview	5.66%	—	—		14,598
			$	721,293	$	792,344

Credit Facility

The Company has a $500 million senior unsecured line of credit (the "Credit Facility") that matures on May 28, 2019. The Credit Facility may be expanded to $750 million at the election of the Company, subject to the receipt of additional commitments from the lenders and other customary conditions.

The Credit Facility contains financial covenants that require, among other things, the maintenance of an unencumbered interest coverage ratio of at least 2.00; a fixed charge coverage ratio of at least 1.50; an overall leverage ratio of no more than 60%; and a minimum shareholders' equity in an amount equal to $1.0 billion, plus a portion of the net cash proceeds from certain equity issuances. The Credit Facility also contains customary representations and warranties and affirmative and negative covenants, as well as customary events of default. The amounts outstanding under the Credit Facility may be accelerated upon the occurrence of any events of default.

The interest rate applicable to the Credit Facility varies according to the Company’s leverage ratio, and may, at the election of the Company, be determined based on either (1) the current London Interbank Offered Rate ("LIBOR") plus the applicable spread as detailed below or (2) the greater of Bank of America's prime rate, the federal funds rate plus 0.50% or the one-month LIBOR plus 1.0% (the “Base Rate”), plus the applicable spread as detailed below. Fees on letters of credit issued under the Credit Facility are payable at an annual rate equal to the spread applicable to loans bearing interest based on LIBOR. The Company also pays an annual facility fee on the total commitments under the Credit Facility. The pricing spreads and the facility fee under the Credit Facility are as follows:



Leverage Ratio	Applicable % Spread for LIBOR	Applicable % Spread for Base Rate	Annual Facility Fee %

≤ 30%	1.10%	0.10%	0.15%
>30% but ≤ 35%	1.10%	0.10%	0.20%
>35% but ≤ 40%	1.15%	0.15%	0.20%
>40% but ≤ 45%	1.20%	0.20%	0.20%
>45% but ≤ 50%	1.20%	0.20%	0.25%
>50%	1.45%	0.45%	0.30%

At December 31, 2015, the Credit Facility's spread over LIBOR was 1.1%. The amount that the Company may draw under the Credit Facility is a defined calculation based on the Company's unencumbered assets and other factors. The total available borrowing capacity under the Credit Facility was $407.0 million at December 31, 2015, and the Credit Facility is recourse to the Company.

Other Debt Information

In 2015, the Company prepaid, without penalty, the $14.2 million The Points at Waterview mortgage note. The note was scheduled to mature on January 1, 2016.

The real estate and other assets of The American Cancer Society Center (the “ACS Center”) are restricted under the ACS Center loan agreement in that they are not available to settle debts of the Company. However, provided that the ACS Center loan has not incurred any uncured event of default, as defined in the loan agreement, the cash flows from the ACS Center, after payments of debt service, operating expenses and reserves, are available for distribution to the Company.

The majority of the Company’s consolidated debt is fixed-rate long-term non-recourse mortgage notes payable. Assets with depreciated carrying values of $675.7 million were pledged as security on the $629.3 million mortgage notes payable. As of December 31, 2015, the weighted average maturity of the Company’s consolidated debt was 4.5 years.

At December 31, 2015 and 2014, the estimated fair value of the Company’s notes payable was $738.1 million and $835.4 million, respectively, calculated by discounting the debt's remaining contractual cash flows at estimated rates at which similar loans could have been obtained at December 31, 2015 and 2014. The estimate of the current market rate, which is the most significant input in the discounted cash flow calculation, is intended to replicate debt of similar maturity and loan-to-value relationship. These fair value calculations are considered to be Level 2 under the guidelines as set forth in ASC 820 as the Company utilizes market rates for similar type loans from third party brokers.

For the years ended December 31, 2015, 2014, and 2013, interest was recorded as follows (in thousands):



	2015			2014			2013
Total interest incurred	$	34,302		$	31,862		$	22,227
Interest capitalized	(3,579		)	(2,752		)	(518		)
Total interest expense	$	30,723		$	29,110		$	21,709

Debt Maturities

Future principal payments due on the Company's notes payable at December 31, 2015 are as follows (in thousands):



2016	$	10,070
2017	138,195
2018	105,734
2019	101,447
2020	195,022
Thereafter	170,825
	$	721,293