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Notes Payable
 6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
NOTES PAYABLE NOTES PAYABLE
The following table summarizes the terms of notes payable outstanding at June 30, 2020 and December 31, 2019 ($ in thousands):
DescriptionInterest RateMaturity (1)20202019
Unsecured Notes:
Credit Facility, Unsecured1.21%2023$—  $251,500  
Term Loan, Unsecured1.36%2021250,000  250,000  
2019 Senior Notes, Unsecured3.95%2029275,000  275,000  
2017 Senior Notes, Unsecured3.91%2025250,000  250,000  
2019 Senior Notes, Unsecured3.86%2028250,000  250,000  
2019 Senior Notes, Unsecured3.78%2027125,000  125,000  
2017 Senior Notes, Unsecured4.09%2027100,000  100,000  
1,250,000  1,501,500  
Secured Mortgage Notes:
Fifth Third Center 3.37%2026138,709  140,332  
Terminus 1005.25%2023116,593  118,146  
Colorado Tower 3.45%2026115,883  117,085  
Promenade 4.27%202294,308  95,986  
816 Congress 3.75%202479,118  79,987  
Terminus 2003.79%202375,224  76,079  
Legacy Union One4.24%202366,000  66,000  
Meridian Mark Plaza 6.00%2020—  22,978  
685,835  716,593  
   $1,935,835  $2,218,093  
Unamortized premium9,406  11,239  
Unamortized loan costs(5,724) (6,357) 
Total Notes Payable$1,939,517  $2,222,975  
         
(1) Weighted average maturity of notes payable outstanding at June 30, 2020 was 5.4 years.
Credit Facility
The Company has a $1 billion senior unsecured line of credit (the "Credit Facility") that matures on January 3, 2023. The Credit Facility contains financial covenants that require, among other things, the maintenance of an unencumbered interest coverage ratio of at least 1.75; a fixed charge coverage ratio of at least 1.50; a secured leverage ratio of no more than 40%; and an overall leverage ratio of no more than 60%. 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 Company is in compliance with all covenants of the Credit Facility.
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 Offering Rate ("LIBOR") plus a spread of between 1.05% and 1.45%, 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% or 0.45%, based on leverage.
At June 30, 2020, the Credit Facility's spread over LIBOR was 1.05%. 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 $1.0 billion at June 30, 2020.
Term Loan
The Company has a $250 million unsecured term loan (the "Term Loan") that matures on December 2, 2021. The Term Loan has 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 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 1.00% (the “Base Rate”), plus a spread of between 0.00% and 0.75%, based on leverage. At June 30, 2020, the Term Loan's spread over LIBOR was 1.20%. The Company is in compliance with all covenants of the Term Loan.
Unsecured Senior Notes
The Company has unsecured senior notes of $1.0 billion that were funded in five tranches. The first tranche of $100 million is due in 2027 and has a fixed annual interest rate of 4.09%. The second tranche of $250 million is due in 2025 and has a fixed annual interest rate of 3.91%. The third tranche of $125 million is due in 2027 and has a fixed annual interest rate of 3.78%. The fourth tranche of $250 million is due in 2028 and has a fixed annual interest rate of 3.86%. The fifth tranche of $275 million is due in 2029 and has a fixed annual interest rate of 3.95%.
The unsecured senior notes contain financial covenants that require, among other things, the maintenance of an unencumbered interest coverage ratio of at least 1.75; a fixed charge coverage ratio of at least 1.50; an overall leverage ratio of no more than 60%; and a secured leverage ratio of no more than 40%. The senior notes also contain customary representations and warranties and affirmative and negative covenants, as well as customary events of default. The Company is in compliance with all covenants of the unsecured senior notes.
Mortgage Notes
On February 3, 2020, the Company prepaid in full, without penalty, the $23.0 million Meridian Mark Plaza mortgage note.
Other Debt Information
At June 30, 2020 and December 31, 2019, the estimated fair value of the Company’s notes payable was $2.0 billion and $2.3 billion, respectively, calculated by discounting the debt's remaining contractual cash flows at estimated rates at which similar loans could have been obtained at June 30, 2020 and December 31, 2019. 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 three and six months ended June 30, 2020 and 2019, interest expense was recorded as follows (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Total interest incurred$17,952  $13,175  $39,165  $25,010  
Interest capitalized(3,959) (1,116) (9,268) (2,131) 
Total interest expense$13,993  $12,059  $29,897  $22,879