Borrowings Under Line of Credit Arrangement and Related Items

9 Months Ended

Sep. 30, 2011

Borrowings Under Line of Credit Arrangement and Related Items [Abstract]

Borrowings Under Line of Credit Arrangement and Related Items

9. Borrowings Under Line of Credit Arrangement and Related Items

On July 27, 2011, we closed on a $2,000,000,000 unsecured line of credit arrangement with a consortium of 31 banks with an option to upsize the facility by up to an additional $500,000,000 through an accordion feature, allowing for the aggregate commitment of up to $2,500,000,000. The revolving credit facility is scheduled to expire July 27, 2015.

Borrowings under the agreement are subject to interest payable in periods no longer than three months at either the agent bank’s prime rate of interest or the applicable margin over LIBOR interest rate, at our option (1.59% at September 30, 2011). The applicable margin is based on certain of our debt ratings and was 1.35% at September 30, 2011. In addition, we pay a facility fee annually to each bank based on the bank’s commitment amount. The facility fee depends on certain of our debt ratings and was 0.25% at September 30, 2011. Principal is due upon expiration of the agreement.

The following information relates to aggregate borrowings under the unsecured line of credit arrangement for the periods presented (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Balance outstanding at quarter end	$	390,000		$	—		$	390,000		$	—
Maximum amount outstanding at any month end	$	390,000		$	560,000		$	495,000		$	560,000
Average amount outstanding (total of daily principal balances divided by days in period)	$	140,978		$	220,467		$	152,832		$	265,465
Weighted average interest rate (actual interest expense divided by average borrowings outstanding)		1.61	%		1.08	%		1.12	%		0.71	%