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Notes Payable
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
NOTES PAYABLE NOTES PAYABLE
The following table summarizes the terms of notes payable outstanding at December 31, 2021 and 2020 ($ in thousands):
DescriptionInterest Rate (1)Maturity (2)20212020
Unsecured Notes:
Credit Facility, Unsecured1.15%2023$228,500 $232,400 
Term Loan, Unsecured1.15%2024350,000 250,000 
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 
1,578,500 1,482,400 
Secured Mortgage Notes:
Fifth Third Center 3.37%2026133,672 137,057 
Colorado Tower3.45%2026112,150 114,660 
Terminus 1005.25%2023111,678 114,997 
Promenade 4.27%202289,052 92,593 
Domain 10 (3)3.75%202476,412 78,232 
Terminus 2003.79%202372,561 74,354 
Legacy Union One4.24%202366,000 66,000 
661,525 677,893 
   $2,240,025 $2,160,293 
Unamortized premium3,910 7,574 
Unamortized loan costs(6,426)(5,148)
Total Notes Payable$2,237,509 $2,162,719 
(1) Interest rate as of December 31, 2021.
(2) Weighted average maturity of notes payable outstanding at December 31, 2021 was 3.9 years.
(3) At December 31, 2020, this mortgage was secured by the Company's 816 Congress property.
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 1.75x; a fixed charge coverage ratio of at least 1.50x; 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 Company expects to negotiate a new credit facility prior to the current maturity date which will have a borrowing capacity that meets or exceeds the current facility and extends the maturity date.
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 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 December 31, 2021, 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 $771.5 million at December 31, 2021.
Term Loan
On June 28, 2021, the Company entered into an Amended and Restated Term Loan Agreement (the "New Term Loan") that amended the former term loan agreement. Under the New Term Loan, the Company has borrowed $350 million that matures on August 30, 2024 with options to, on up to four successive occasions, extend the maturity date for an additional 180 days. The New Term Loan has financial covenants consistent with those of the Credit Facility. The interest rate applicable to the New 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 Eurodollar Rate Loans plus a spread of between 1.05% and 1.65%, (2) the current LIBOR Daily Floating plus a spread of between 1.05% and 1.65%, or (3) the interest rate applicable to Base Rate Loans plus a spread of between 0.05% and 0.65%. At December 31, 2021, the New Term Loan's spread over LIBOR was 1.05%. The Company is in compliance with all covenants of the New Term Loan.
Prior to June 28, 2021, the Company had a $250 million unsecured term loan (the "Old Term Loan") that was scheduled to mature on December 2, 2021. The Old Term Loan had financial covenants consistent with those of the Credit Facility. The interest rate applicable to the Old Term Loan varied according to the Company's leverage ratio and could have, at the election of the Company, been 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%, plus a spread of between 0.00% and 0.75%, based on leverage.
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 are consistent with those of our Credit Facility. 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.
Secured Mortgage Notes
In June 2021, the Company executed a collateral substitution for the mortgage previously secured by the Company's 816 Congress property in Austin. The mortgage is now secured by the Company's Domain 10 property in Austin. All other terms of the note were unchanged.
In February 2020, the Company prepaid in full the $23.0 million Meridian Mark Plaza mortgage note, without penalty.
    As of December 31, 2021, the Company had $661.5 million outstanding on seven non-recourse mortgage notes. All interest rates on the secured mortgage notes are fixed. Assets with depreciated carrying values of $1.1 billion were pledged as security on these mortgage notes payable.
Other Debt Information
At December 31, 2021 and 2020, the estimated fair value of the Company’s notes payable was $2.3 billion, calculated by discounting the debt's remaining contractual cash flows at estimated rates at which similar loans could have been obtained at December 31, 2021 and 2020. 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, 2021, 2020, and 2019, interest was recorded as follows (in thousands):
202120202019
Total interest incurred$73,284 $74,929 $65,182 
Interest capitalized(6,257)(14,324)(11,219)
Total interest expense$67,027 $60,605 $53,963 
Debt Maturities
Future principal payments due (including scheduled amortization payments and payments due upon maturity) on the Company's notes payable at December 31, 2021 are as follows (in thousands): 
2022$102,401 
2023481,655 
2024429,087 
2025256,755 
2026220,127 
Thereafter750,000 
$2,240,025