Debt Obligations

3 Months Ended

Mar. 31, 2020

7. DEBT OBLIGATIONS

The following table sets forth information regarding the Company’s consolidated debt obligations outstanding at March 31, 2020 and December 31, 2019 (in thousands):



	March 31, 2020			December 31, 2019			Effective Interest Rate	Maturity Date
MORTGAGE DEBT:
Two Logan Square	$	80,667		$	81,103		3.98%	August 2020
Four Tower Bridge	9,230			9,291			4.50%	February 2021
One Commerce Square	115,647			116,571			3.64%	April 2023
Two Commerce Square	107,948			108,472			4.51%	April 2023
Principal balance outstanding	313,492			315,437
Plus: fair market value premium (discount), net	(1,289		)	(1,383		)
Less: deferred financing costs	(202		)	(242		)
Mortgage indebtedness	$	312,001		$	313,812

UNSECURED DEBT
$600 million Unsecured Credit Facility	$	50,000		$	—		LIBOR + 1.10%	July 2022
Seven-Year Term Loan - Swapped to fixed	250,000			250,000			2.87%	October 2022
$350.0M 3.95% Guaranteed Notes due 2023	350,000			350,000			3.87%	February 2023
$350.0M 4.10% Guaranteed Notes due 2024	350,000			350,000			3.78%	October 2024
$450.0M 3.95% Guaranteed Notes due 2027	450,000			450,000			4.03%	November 2027
$350.0M 4.55% Guaranteed Notes due 2029	350,000			350,000			4.30%	October 2029
Indenture IA (Preferred Trust I)	27,062			27,062			LIBOR + 1.25%	March 2035
Indenture IB (Preferred Trust I) - Swapped to fixed	25,774			25,774			3.30%	April 2035
Indenture II (Preferred Trust II)	25,774			25,774			LIBOR + 1.25%	July 2035
Principal balance outstanding	1,878,610			1,828,610
Plus: original issue premium (discount), net	11,601			12,090
Less: deferred financing costs	(9,612		)	(10,094		)
Total unsecured indebtedness	$	1,880,599		$	1,830,606
Total Debt Obligations	$	2,192,600		$	2,144,418

In addition to the debt described above, the Company utilizes borrowings under its unsecured revolving credit facility (the “Unsecured Credit Facility”) for general business purposes, including to fund costs of acquisitions, developments and redevelopments of properties, fund share repurchases and repay other debt. The Unsecured Credit Facility provides for borrowings of up to $600.0 million and the per annum variable interest rate on borrowings is LIBOR plus 1.10%. The interest rate and facility fee are subject to adjustment upon a change in the Company’s unsecured debt ratings. During the three months ended March 31, 2020, the weighted-average interest rate on Unsecured Credit Facility borrowings was 2.1% resulting in a nominal amount of interest expense. As of March 31, 2020, the effective interest rate on Credit Facility borrowings was 2.1%.

The Parent Company unconditionally guarantees the unsecured debt obligations of the Operating Partnership (or is a co-borrower with the Operating Partnership) but does not by itself incur unsecured indebtedness. The Parent Company has no material assets other than its investment in the Operating Partnership.

The Company was in compliance with all financial covenants as of March 31, 2020. Certain of the covenants restrict the Company’s ability to obtain alternative sources of capital.

As of March 31, 2020, the Company’s aggregate scheduled principal payments of debt obligations are as follows (in thousands):



2020 (nine months remaining)	$	85,281
2021	15,143
2022	306,332
2023	556,736
2024	350,000
Thereafter	878,610
Total principal payments	2,192,102
Net unamortized premiums/(discounts)	10,312
Net deferred financing costs	(9,814		)
Outstanding indebtedness	$	2,192,600