NOTES PAYABLE

The following table details the terms and amounts of the Company’s outstanding notes payable at March 31, 2017 and December 31, 2016 ($ in thousands):



Description	Interest Rate		Maturity	March 31, 2017			December 31, 2016
Credit Facility, unsecured	2.08	%	2019	$	—		$	134,000
Term Loan, unsecured	2.18	%	2021	250,000			250,000
Fifth Third Center	3.37	%	2026	148,786			149,516
One Eleven Congress	6.08	%	2017	128,000			128,000
The ACS Center	6.45	%	2017	126,997			127,508
Colorado Tower	3.45	%	2026	120,000			120,000
Promenade	4.27	%	2022	104,607			105,342
San Jacinto Center	6.05	%	2017	101,000			101,000
816 Congress	3.75	%	2024	84,486			84,872
3344 Peachtree	4.75	%	2017	78,453			78,971
Two Buckhead Plaza	6.43	%	2017	52,000			52,000
Meridian Mark Plaza	6.00	%	2020	24,404			24,522
The Pointe	4.01	%	2019	22,838			22,945
				1,241,571			1,378,676
Unamortized premium, net				3,601			6,792
Unamortized loan costs				(4,444		)	(4,548		)
Notes Payable				$	1,240,728		$	1,380,920
Notes Payable - real estate assets held for sale, net				(126,962		)	—
Total Notes Payable				$	1,113,766		$	1,380,920

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 a spread of between 1.10% and 1.45%, based on leverage 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 a spread of between 0.10% and 0.45%, based on leverage. The Company also pays an annual facility fee on the total commitments under the Credit Facility of between 0.15% and 0.30% based on leverage.

At March 31, 2017, 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 $499 million at March 31, 2017.

Term Loan

The Company has a $250 million senior unsecured term loan (the "Term Loan") that matures on December 2, 2021. The Term Loan contains financial covenants consistent with those of the Credit Facility. The interest rate applicable to the Term Loan 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 a spread of between 1.20% and 1.70%, based on leverage 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 a spread of between 0.00% and 0.75%, based on leverage. At March 31, 2017, the Term Loan's spread over LIBOR was 1.2%.

Fair Value

At March 31, 2017 and December 31, 2016, the aggregate estimated fair values of the Company's notes payable were $1.3 billion and $1.4 billion, respectively, calculated by discounting the debt's remaining contractual cash flows at estimated rates at which similar loans could have been obtained at those respective dates. 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, "Fair Value Measurement," as the Company utilizes market rates for similar type loans from third-party brokers.

Other Information

For the three months ended March 31, 2017 and 2016, interest expense was as follows (in thousands):



	Three Months Ended March 31, 2017
	2017			2016
Total interest incurred	$	11,331		$	8,156
Less interest - discontinued operations	—			(1,975		)
Interest capitalized	(1,590		)	(742		)
Total interest expense	$	9,741		$	5,439

The real estate and other assets of The American Cancer Society Center (the “ACS Center”) are restricted under the ACS Center loan agreement as 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.

In April 2017, the Company repaid in full, without penalty, the $128 million One Eleven Congress mortgage note and the $101 million San Jacinto Center mortgage note.

In April 2017, the Company closed a $350 million private placement of senior unsecured debt, which will be drawn in two tranches. The first tranche of $100 million was drawn in April 2017, has a 10-year maturity, and has a fixed annual interest rate of 4.09%. The second tranche of $250 million will be drawn in July 2017, will have an 8-year maturity, and will have a fixed annual interest rate of 3.91%.