Debt Obligations

6 Months Ended

Jun. 30, 2019

6. DEBT OBLIGATIONS

The following table sets forth information regarding the Company’s consolidated debt obligations outstanding at June 30, 2019 and December 31, 2018 (in thousands):

	June 30, 2019			December 31, 2018			Effective Interest Rate	Maturity Date
MORTGAGE DEBT:
Two Logan Square	$	81,962		$	82,805		3.98%	May 2020
Four Tower Bridge		9,410			9,526		4.50%	Feb 2021
One Commerce Square		118,393			120,183		3.64%	Apr 2023
Two Commerce Square		109,505			110,518		4.51%	Apr 2023
Principal balance outstanding		319,270			323,032
Plus: fair market value premium (discount), net		(1,570	)		(1,759	)
Less: deferred financing costs		(323	)		(404	)
Mortgage indebtedness	$	317,377		$	320,869

UNSECURED DEBT
$600 million Unsecured Credit Facility	$	163,500		$	92,500		LIBOR + 1.10%	Jul 2022
Seven-Year Term Loan - Swapped to fixed		250,000			250,000		2.87%	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		1,792,110			1,721,110
Plus: original issue premium (discount), net		(3,933	)		(4,096	)
Less: deferred financing costs		(9,018	)		(9,837	)
Total unsecured indebtedness	$	1,779,159		$	1,707,177
Total Debt Obligations	$	2,096,536		$	2,028,046

As of both June 30, 2019 and December 31, 2018, the Company’s weighted-average effective interest rates on its mortgage notes payable was 4.05%.

In addition to the debt described above, the Company utilizes borrowings under its unsecured revolving credit facility (the “Credit Facility”) for general business purposes, including to fund costs of acquisitions, developments and redevelopments of properties, fund share repurchases and to repay from time to time other debt. The 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 six months ended June 30, 2019, the weighted-average interest rate on Credit Facility borrowings was 3.6% resulting in $2.8 million of interest expense. As of June 30, 2019, the effective interest rate on Credit Facility borrowings was 3.5%. The Company had no borrowings under the Credit Facility as of and during the six-months ended June 30, 2018.

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 June 30, 2019. Certain of the covenants restrict the Company’s ability to obtain alternative sources of capital.

As of June 30, 2019, the Company’s aggregate scheduled principal payments of debt obligations are as follows (in thousands):

2019 (six months remaining)	$	3,833
2020		87,226
2021		15,143
2022		419,832
2023		556,736
Thereafter		1,028,610
Total principal payments		2,111,380
Net unamortized premiums/(discounts)		(5,503	)
Net deferred financing costs		(9,341	)
Outstanding indebtedness	$	2,096,536