| Consolidated debt obligations |
The following table sets forth information regarding the Company’s consolidated debt obligations outstanding at December 31, 2017 and 2016 (in thousands):
|
|
December 31, 2017 |
|
|
December 31, 2016 |
|
|
Effective
Interest Rate |
|
|
Maturity
Date |
|
MORTGAGE DEBT: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Two Logan Square |
$ |
84,440 |
|
|
$ |
86,012 |
|
|
3.98% |
|
|
May 2020 |
|
One Commerce Square |
|
123,667 |
|
|
|
127,026 |
|
|
3.64% |
|
(a) |
Apr 2023 |
|
Two Commerce Square |
|
112,000 |
|
|
|
112,000 |
|
|
4.51% |
|
(b) |
Apr 2023 |
|
Principal balance outstanding |
|
320,107 |
|
|
|
325,038 |
|
|
|
|
|
|
|
|
Plus: fair market value premium (discount), net |
|
(2,325 |
) |
|
|
(2,761 |
) |
|
|
|
|
|
|
|
Less: deferred financing costs |
|
(566 |
) |
|
|
(728 |
) |
|
|
|
|
|
|
|
Mortgage indebtedness |
$ |
317,216 |
|
|
$ |
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 (c) |
|
- |
|
|
|
300,000 |
|
|
5.68% |
|
|
May 2017 |
|
$325.0M 4.95% Guaranteed Notes due 2018 (d) |
|
- |
|
|
|
325,000 |
|
|
5.13% |
|
|
Apr 2018 |
|
$350.0M 3.95% Guaranteed Notes due 2023 (d) |
|
350,000 |
|
|
|
250,000 |
|
|
3.87% |
|
|
Feb 2023 |
|
$250.0M 4.10% Guaranteed Notes due 2024 |
|
250,000 |
|
|
|
250,000 |
|
|
4.33% |
|
|
Oct 2024 |
|
$450.0M 3.95% Guaranteed Notes due 2027 (d) |
|
450,000 |
|
|
|
- |
|
|
4.03% |
|
|
Nov 2027 |
|
$250.0M 4.55% Guaranteed Notes due 2029 |
|
250,000 |
|
|
|
250,000 |
|
|
4.60% |
|
|
Oct 2029 |
|
Indenture IA (Preferred Trust I) (e) |
|
27,062 |
|
|
|
27,062 |
|
|
LIBOR + 1.25% |
|
|
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 |
|
1,628,610 |
|
|
|
1,703,610 |
|
|
|
|
|
|
|
|
Plus: original issue premium (discount), net |
|
(4,423 |
) |
|
|
(4,678 |
) |
|
|
|
|
|
|
|
Less: deferred financing costs |
|
(10,575 |
) |
|
|
(7,369 |
) |
|
|
|
|
|
|
|
Total unsecured indebtedness |
$ |
1,613,612 |
|
|
$ |
1,691,563 |
|
|
|
|
|
|
|
|
Total Debt Obligations |
$ |
1,930,828 |
|
|
$ |
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. 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. |
|
(d) |
On November 17, 2017, the Company completed an offering of $450.0 million 3.95% Guaranteed Notes due 2027 (the “2027 Notes) and reopened the 3.95% Guaranteed Notes due 2023 (the “2023 Notes”) for an additional $100.0 million. On November 17, 2017, the Company redeemed the remaining outstanding balance of the 4.95% Guaranteed Notes due 2018 (the “2018 Notes”) ahead of its scheduled maturity. See below for further discussion. |
|
(e) |
On September 30, 2017, the interest rate hedge contract for the Preferred Trust I expired. Subsequent to this expiration, the debt bears interest at a variable rate of LIBOR + 1.25%. |
|
| Schedule of Maturities of Long-term Debt |
As of December 31, 2017, the Company’s aggregate scheduled principal payments of debt obligations, excluding amortization of discounts and premiums, are as follows (in thousands):
|
2018 |
$ |
6,601 |
|
|
2019 |
|
7,360 |
|
|
2020 |
|
86,978 |
|
|
2021 |
|
6,099 |
|
|
2022 |
|
256,332 |
|
|
Thereafter |
|
1,585,347 |
|
|
Total principal payments |
|
1,948,717 |
|
|
Net unamortized premiums/(discounts) |
|
(6,748 |
) |
|
Net deferred financing costs |
|
(11,141 |
) |
|
Outstanding indebtedness |
$ |
1,930,828 |
|
|