DEBT

Debt consists of the following (in thousands):



	December 31, 2013		December 31, 2012
Revolving credit facility - unsecured	$	167,000	$	64,000
Bank term loans - unsecured	370,000		120,000
Bank term loan - secured	—		19,250
Fannie Mae term loans - secured (including a premium of $1,756)	80,080		—
	$	617,080	$	203,250

On June 28, 2013, we entered into a $370,000,000 unsecured credit facility which includes a 5-year revolving credit facility (inclusive of a 1-year extension option) of $250,000,000 with interest initially at 140 basis points over LIBOR and $120,000,000 of 7-year term loans with interest initially at 150 basis points over LIBOR. The facility also includes an uncommitted incremental facility feature allowing for an additional $130,000,000 of borrowings. The credit facility was provided by Wells Fargo, Bank of Montreal, KeyBank, and Bank of America, with Pinnacle National Bank as a participating bank. At December 31, 2013, we had $83,000,000 available to draw on the revolving portion of the credit facility. Quoted 30-day LIBOR was 17 basis points on December 31, 2013. The unused commitment fee is 35 basis points per annum. The new facility replaces a smaller credit facility that originated on May 1, 2012 and provided for $320,000,000 of total borrowing capacity. Interest rates are referenced to our Consolidated Leverage Ratio, as defined, and were adjusted in December 2013 to 165 basis points over LIBOR for the revolving credit facility and 175 basis points over LIBOR for the term loans to give effect to debt undertaken in conjunction with our Holiday acquisition. The revolving credit facility has a maximum applicable rate of 190 basis points over LIBOR and the term loans have a maximum applicable rate of 200 basis points over LIBOR.

To provide a portion of the funding for the Holiday acquisition described in Note 2, we entered into a $250,000,000 term loan with a syndicate of banks led by Wells Fargo. Interest is 175 basis points over LIBOR and the loan has the same maturity as our revolving credit facility.

As part of the Care acquisition described in Note 2, we assumed Fannie Mae mortgage loans, with principal balances of $71,090,000 and $7,234,000 on December 31, 2013, which have interest at rates of 6.85% and 7.17%, respectively, and mature on July 1, 2015 (prepayable without penalty after December 31, 2014).

The unsecured credit facility mentioned above requires that we maintain certain financial ratios within limits set by our creditors. To date, these ratios, which are calculated quarterly, have been well within the limits required by the credit facility agreements.

The following table summarizes interest expense (in thousands):



	Year Ended December 31,
	2013		2012		2011
Interest expense	$	8,523	$	3,172	$	2,070
Amortization of loan costs	706		320		581
Change in fair value of interest rate swap agreement	—		—		1,197
Total interest expense	$	9,229	$	3,492	$	3,848

Amortization of loan costs for 2013 includes $416,000 which was written off as a result of modifications we made to the credit facility.

In August 2013, we used our revolving credit facility to pay off a $19,250,000 secured bank loan which provided for interest at 300 basis points over LIBOR.

Interest Rate Swap Agreements

We have entered into interest rate swap agreements to fix the interest rates on the $80,000,000 and $40,000,000 7-year term loans. The critical terms of this swap agreement are essentially identical to those of the 7-year term loans and thus, in accordance with ASC Topic 815 Derivative Instruments and Hedging Activities, the swap is considered a perfectly effective "cash flow hedge." Accordingly, changes in the fair value of this cash flow hedge are included in accumulated other comprehensive income rather than net income in our Consolidated Statements of Income. If the fair value of the hedge is an asset, we include it in our Consolidated Balance Sheets in other assets, and, if a liability, as a component of accrued expenses.

Below is a summary of our swap agreements at December 31, 2013 (dollars in thousands):



Date Entered	Maturity Date	Fixed Rate	Rate Index	Notional Amount		Fair Value
May 2012	April 2019	3.29%	1-month LIBOR	$	40,000	$	544
June 2013	June 2020	3.86%	1-month LIBOR	$	80,000	$	431

See Note 14 for fair value disclosures about our Fannie Mae mortgage loan and interest rate swap agreements.

On November 1, 2011, we terminated a previous interest rate swap agreement. Interest in 2011 reflected the change in fair value of the interest rate swap agreement.