Debt Obligations

9 Months Ended

Sep. 30, 2020

7. DEBT OBLIGATIONS

The following table sets forth information regarding the Company’s consolidated debt obligations outstanding as of September 30, 2020 and December 31, 2019 (in thousands):



	September 30, 2020			December 31, 2019			Effective Interest Rate	Maturity Date
MORTGAGE DEBT:
Two Logan Square (a)	$	79,781		$	81,103		3.98%	October 2020
Four Tower Bridge	9,107			9,291			4.50%	February 2021
One Commerce Square (b)	—			116,571			3.64%	April 2023
Two Commerce Square (b)	—			108,472			4.51%	April 2023
Principal balance outstanding	88,888			315,437
Plus: fair market value premium (discount), net	25			(1,383		)
Less: deferred financing costs	—			(242		)
Mortgage indebtedness	$	88,913		$	313,812

UNSECURED DEBT
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	1,828,610			1,828,610
Plus: original issue premium (discount), net	10,626			12,090
Less: deferred financing costs	(8,638		)	(10,094		)
Total unsecured indebtedness	$	1,830,598		$	1,830,606
Total Debt Obligations	$	1,919,511		$	2,144,418


(a)	On October 21, 2020, the Company acquired the mortgage on this property from the lender. See Note 15, "Subsequent Events," for further information.


(b)	The properties encumbered by these mortgages were deconsolidated as a result of the Commerce Square Venture Transaction.. See Note 3, ''Real Estate Investments," for further information.

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 nine months ended September 30, 2020, the weighted-average interest rate on Unsecured Credit Facility borrowings was 1.6% resulting in a nominal amount of interest expense. As of September 30, 2020, the Company had no borrowings under the Unsecured Credit Facility.

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 September 30, 2020. Certain of the covenants restrict the Company’s ability to obtain alternative sources of capital.

As of September 30, 2020, the Company’s aggregate scheduled principal payments of debt obligations are as follows (in thousands):



2020 (three months remaining)	$	79,845
2021	9,043
2022	250,000
2023	350,000
2024	350,000
Thereafter	878,610
Total principal payments	1,917,498
Net unamortized premiums/(discounts)	10,651
Net deferred financing costs	(8,638		)
Outstanding indebtedness	$	1,919,511