6. DEBT OBLIGATIONS

The following table sets forth information regarding the Company’s consolidated debt obligations outstanding at March 31, 2017 and December 31, 2016 (in thousands):

	March 31, 2017			December 31, 2016			Effective Interest Rate				Maturity Date
MORTGAGE DEBT:

Two Logan Square	$	85,625		$	86,012			3.98	%		May 2020
One Commerce Square		126,198			127,026			3.64	%	(a)	Apr 2023
Two Commerce Square		112,000			112,000			4.51	%	(b)	Apr 2023
Principal balance outstanding		323,823			325,038
Plus: fair market value premium (discount), net		(2,652	)		(2,761	)
Less: deferred financing costs		(687	)		(728	)
Mortgage indebtedness	$	320,484		$	321,549

UNSECURED DEBT
Seven-Year Term Loan - Swapped to fixed	$	250,000		$	250,000			3.72	%		Oct 2022
$300.0M 5.70% Guaranteed Notes due 2017		300,000			300,000			5.68	%		May 2017
$325.0M 4.95% Guaranteed Notes due 2018		325,000			325,000			5.13	%		Apr 2018
$250.0M 3.95% Guaranteed Notes due 2023		250,000			250,000			4.02	%		Feb 2023
$250.0M 4.10% Guaranteed Notes due 2024		250,000			250,000			4.33	%		Oct 2024
$250.0M 4.55% Guaranteed Notes due 2029		250,000			250,000			4.60	%		Oct 2029
Indenture IA (Preferred Trust I)		27,062			27,062			2.75	%		Mar 2035
Indenture IB (Preferred Trust I)		25,774			25,774			3.30	%		Apr 2035
Indenture II (Preferred Trust II)		25,774			25,774			3.09	%		Jul 2035
Principal balance outstanding		1,703,610			1,703,610
Plus: original issue premium (discount), net		(4,424	)		(4,678	)
Less: deferred financing costs		(6,999	)		(7,369	)
Total unsecured indebtedness	$	1,692,187		$	1,691,563
Total Debt Obligations	$	2,012,671		$	2,013,112

(a)

This loan was assumed upon acquisition of the related properties on December 19, 2013. On December 29, 2015, the Company refinanced the debt increasing the principal balance to $130.0 million and extended the term of the scheduled maturity from January 6, 2016 to April 5, 2023. The effective interest rate as of December 31, 2015 was 3.64%. A default under this loan will also constitute a default under the loan outstanding on Two Commerce Square. This loan is also secured by a lien on Two Commerce Square.

(b)

This loan was assumed upon acquisition of the related property on December 19, 2013. The interest rate reflects the market rate at the time of acquisition. A default under this loan will also constitute a default under the loan outstanding on One Commerce Square. This loan is also secured by a lien on One Commerce Square.

As of March 31, 2017 and December 31, 2016, the Company’s weighted-average effective interest rates on its mortgage notes payable were both 4.03%. As of March 31, 2017 and December 31, 2016, the net carrying value of the Company’s Properties that are encumbered by mortgage indebtedness was $323.8 million and $325.0 million, respectively.

On May 15, 2015, the Company closed on a new four-year unsecured revolving credit facility that provides for borrowings of up to $600.0 million. The Company had no borrowings under its unsecured revolving credit facility as of and during either of the three-month periods ended March 31, 2017 and March 31, 2016.

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, 2017. Management continuously monitors the Company’s compliance with and anticipated compliance with the covenants. Certain of the covenants restrict the Company’s ability to obtain alternative sources of capital. While the Company currently believes it will remain in compliance with its covenants, in the event that the economy deteriorates in the future, the Company may not be able to remain in compliance with such covenants, in which case a default would result absent a lender waiver.