Debt Obligations (Tables)

12 Months Ended

Dec. 31, 2018

The following table sets forth information regarding the Company’s consolidated debt obligations outstanding at December 31, 2018 and 2017 (in thousands):

	December 31, 2018			December 31, 2017			Effective Interest Rate		Maturity Date
MORTGAGE DEBT:
Two Logan Square	$	82,805		$	84,440		3.98%		May 2020
Four Tower Bridge		9,526			-		4.50%	(a)	Feb 2021
One Commerce Square		120,183			123,667		3.64%		Apr 2023
Two Commerce Square		110,518			112,000		4.51%		Apr 2023
Principal balance outstanding		323,032			320,107
Plus: fair market value premium (discount), net		(1,759	)		(2,325	)
Less: deferred financing costs		(404	)		(566	)
Mortgage indebtedness	$	320,869		$	317,216

UNSECURED DEBT
$600 million Unsecured Credit Facility	$	92,500		$	-		LIBOR + 1.10%		Jul 2022
Seven-Year Term Loan - Swapped to fixed		250,000			250,000		2.87%	(b)	Oct 2022
$350.0M 3.95% Guaranteed Notes due 2023		350,000			350,000		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		450,000			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)		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		1,721,110			1,628,610
Plus: original issue premium (discount), net		(4,096	)		(4,423	)
Less: deferred financing costs		(9,837	)		(10,575	)
Total unsecured indebtedness	$	1,707,177		$	1,613,612
Total Debt Obligations	$	2,028,046		$	1,930,828

(a)	This loan was assumed upon acquisition of the related property on January 5, 2018. The interest rate reflects the market rate at the time of acquisition.

(b)

On December 13, 2018, the Company amended and restated its $250.0 million seven-year term loan maturing October 8, 2022. In connection with the terms of the amendment, the credit spread on the term loan decreased from LIBOR plus 1.80% to LIBOR plus 1.25%, reducing the Company’s effective interest rate by 0.55%. Through a series of interest rate swaps, the $250.0 million outstanding balance of the term loan has a fixed interest rate of 2.87%.

Summary of debt repurchases

The following table provides additional information on the Company’s repurchase of $325.0 million in the aggregate principal amount of its outstanding unsecured notes (consisting of the 2018 Notes, as indicated above) during the twelve months ended December 31, 2017 (in thousands). There were no repurchases of unsecured debt during the twelve months ended December 31, 2018 or 2016.

Notes	Principal				Repurchase Amount (a)				Loss on Early Extinguishment of Debt (b)
2018 4.95% Notes	$	325,000			$	330,792			$	(3,933	)

(a)	Includes prepayment penalties with respect to the redemption of debt.

(b)	Includes unamortized balance of the original issue discount and deferred financing costs.

Schedule of Maturities of Long-term Debt

As of December 31, 2018, the Company’s aggregate scheduled principal payments of debt obligations, excluding amortization of discounts and premiums, are as follows (in thousands):

2019	$	7,595
2020		87,226
2021		15,143
2022		348,832
2023		556,736
Thereafter		1,028,610
Total principal payments		2,044,142
Net unamortized premiums/(discounts)		(5,855	)
Net deferred financing costs		(10,241	)
Outstanding indebtedness	$	2,028,046