6. DEBT OBLIGATIONS

The following table sets forth information regarding the Company’s consolidated debt obligations outstanding at September 30, 2017 and December 31, 2016 (in thousands):

	September 30, 2017			December 31, 2016			Effective Interest Rate			Maturity Date
MORTGAGE DEBT:

Two Logan Square	$	84,839		$	86,012			3.98%		May 2020
One Commerce Square		124,518			127,026			3.64%	(a)	Apr 2023
Two Commerce Square		112,000			112,000			4.51%	(b)	Apr 2023
Principal balance outstanding		321,357			325,038
Plus: fair market value premium (discount), net		(2,434	)		(2,761	)
Less: deferred financing costs		(606	)		(728	)
Mortgage indebtedness	$	318,317		$	321,549

UNSECURED DEBT
$600.0M Revolving Credit Facility	$	178,000		$	-		LIBOR + 1.20%			May 2019
Seven-Year Term Loan - Swapped to fixed		250,000			250,000			3.72%		Oct 2022
$300.0M 5.70% Guaranteed Notes due 2017 (c)		-			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) - Swapped to fixed		27,062			27,062			2.75%		Mar 2035
Indenture IB (Preferred Trust I) - Swapped to fixed		25,774			25,774			3.30%		Apr 2035
Indenture II (Preferred Trust II) - Swapped to fixed		25,774			25,774			3.09%		Jul 2035
Principal balance outstanding		1,581,610			1,703,610
Plus: original issue premium (discount), net		(3,937	)		(4,678	)
Less: deferred financing costs		(6,350	)		(7,369	)
Total unsecured indebtedness	$	1,571,323		$	1,691,563
Total Debt Obligations	$	1,889,640		$	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 scheduled maturity date 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 secured by 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 secured by One Commerce Square. This loan is also secured by a lien on One Commerce Square.

(c)

On May 1, 2017, the entire principal balance of the unsecured 5.70% Guaranteed Notes was repaid upon maturity. Available cash balances and the Credit Facility (as defined below) were used to fund the repayment of the unsecured notes.

As of September 30, 2017 and December 31, 2016, the Company’s weighted-average effective interest rates on its mortgage notes payable were both 4.03%.

The Company utilizes its four-year unsecured revolving credit facility (the “Credit Facility”) borrowings for general business purposes, including acquisition, development and redevelopment properties and the repayment of other debt. The Credit Facility provides for borrowings of up to $600.0 million and the per annum variable interest rate on the outstanding balances is LIBOR plus 1.20%. The interest rate and facility fee are subject to adjustment upon a change in the Company’s unsecured debt ratings. As of September 30, 2017, the Company had $178.0 million of borrowings and $13.5 million in letters of credit outstanding, leaving $408.5 million of unused availability under the Credit Facility. During the nine months ended September 30, 2017, the weighted-average interest rate on Credit Facility borrowings was 2.34%. As of September 30, 2017, the effective interest rate on Credit Facility borrowings was 2.43%. As of and during the nine-month period ended September 30, 2016, the Company had no borrowings under the 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, 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.

As of September 30, 2017, the Company’s aggregate scheduled principal payments of debt obligations, excluding amortization of discounts and premiums, are as follows (in thousands):

2017 (three months remaining)	$	1,250
2018		331,601
2019		185,360
2020		86,978
2021		6,099
Thereafter		1,291,679
Total principal payments		1,902,967
Net unamortized premiums/(discounts)		(6,371	)
Net deferred financing costs		(6,956	)
Outstanding indebtedness	$	1,889,640