Borrowings Under Credit Facilities and Related Items

6 Months Ended

Jun. 30, 2018

Line of Credit Facility [Abstract]

Borrowings Under Credit Facilities and Related Items

Borrowings Under Credit Facilities and Related Items 

At June 30, 2018, we had a primary unsecured credit facility with a consortium of 29 banks that includes a $3,000,000,000 unsecured revolving credit facility, a $500,000,000 unsecured term credit facility and a $250,000,000 Canadian-denominated unsecured term credit facility.  We have an option, through an accordion feature, to upsize the unsecured revolving credit facility and the $500,000,000 unsecured term credit facility by up to an additional $1,000,000,000, in the aggregate, and the $250,000,000 Canadian-denominated unsecured term credit facility by up to an additional $250,000,000.  The primary unsecured credit facility also allows us to borrow up to $1,000,000,000 in alternate currencies (none outstanding at June 30, 2018).  Borrowings under the unsecured revolving credit facility are subject to interest payable at the applicable margin over LIBOR interest rate (2.99% at June 30, 2018). The applicable margin is based on our debt ratings and was 0.90% at June 30, 2018.  In addition, we pay a facility fee quarterly to each bank based on the bank’s commitment amount.  The facility fee depends on our debt ratings and was 0.15% at June 30, 2018.  The term credit facilities mature on May 13, 2021. The revolving credit facility is scheduled to mature on May 13, 2020 and can be extended for two successive terms of six months each at our option.

The following information relates to aggregate borrowings under the primary unsecured revolving credit facility for the periods presented (dollars in thousands): 

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Balance outstanding at quarter end(1)	$	540,000		$	385,000		$	540,000		$	385,000
Maximum amount outstanding at any month end	$	685,000		$	640,000		$	865,000		$	1,010,000
Average amount outstanding (total of daily
principal balances divided by days in period)	$	562,747		$	561,626		$	463,978		$	678,343
Weighted average interest rate (actual interest
expense divided by average borrowings outstanding)	3.04		%	1.94		%	2.91		%	1.87		%

⁽¹⁾ As of June 30, 2018, letters of credit in the aggregate amount of $22,365,000 have been issued, which reduces the borrowing capacity on the unsecured revolving credit facility.