Revolving Credit Facilities and Term Loan

3 Months Ended

Mar. 31, 2012

Revolving Credit Facilities and Term Loan [Abstract]

REVOLVING CREDIT FACILITIES AND TERM LOANS

6. REVOLVING CREDIT FACILITIES AND TERM LOANS

The following table discloses certain information regarding the Company’s Revolving Credit Facilities (as defined below) and Term Loans (as defined below) (in millions):

	Carrying Value at		Weighted-Average Interest Rate at
	March 31, 2012		March 31, 2012			Maturity Date
Unsecured indebtedness:
Unsecured Credit Facility	$	76.0		2.7	%	February 2016
PNC Facility		—		1.9	%	February 2016
Unsecured Term Loan — Tranche 1		50.0		1.9	%	January 2017
Unsecured Term Loan — Tranche 2		200.0		3.6	%	January 2019
Secured indebtedness:
Secured Term Loan		500.0		2.1	%	September 2014

Revolving Credit Facilities

The Company maintains an unsecured revolving credit facility with a syndicate of financial institutions, arranged by JP Morgan Securities, LLC and Wells Fargo Securities, LLC (the “Unsecured Credit Facility”). The Unsecured Credit Facility provides for borrowings of up to $750 million, if certain financial covenants are maintained, and an accordion feature for expansion of availability to

$1.25 billion upon the Company’s request, provided that new or existing lenders agree to the existing terms of the facility and increase their commitment level. The Unsecured Credit Facility includes a competitive bid option on periodic interest rates for up to 50% of the facility. The Unsecured Credit Facility also provides for an annual facility fee, which was 35 basis points on the entire facility at March 31, 2012. The Unsecured Credit Facility also allows for foreign currency-denominated borrowings. At March 31, 2012, the Company had US$6.3 million of Euro borrowings and US$60.7 million of Canadian dollar borrowings outstanding.

The Company also maintains a $65 million unsecured revolving credit facility with PNC Bank, National Association, (the “PNC Facility” and, together with the Unsecured Credit Facility, the “Revolving Credit Facilities”). The PNC Facility reflects terms consistent with those contained in the Unsecured Credit Facility.

The Company’s borrowings under the Revolving Credit Facilities bear interest at variable rates at the Company’s election, based on either (i) the prime rate plus a specified spread (0.65% at March 31, 2012), as defined in the respective facility, or (ii) LIBOR, plus a specified spread (1.65% at March 31, 2012). The specified spreads vary depending on the Company’s long-term senior unsecured debt rating from Moody’s Investors Service and Standard and Poor’s. The Company is required to comply with certain covenants relating to total outstanding indebtedness, secured indebtedness, maintenance of unencumbered real estate assets, unencumbered debt yield and fixed charge coverage. The Company was in compliance with these covenants at March 31, 2012.

Term Loans

The Company maintains a $500 million collateralized term loan (the “Secured Term Loan”) with a syndicate of financial institutions, for which KeyBank National Association serves as the administrative agent. The Secured Term Loan has an accordion feature for expansion up to $600 million upon the Company’s request, provided that new or existing lenders agree to the existing terms of the facility and increase their commitment level. The Secured Term Loan matures in September 2014 with a one-year extension option. Borrowings under the Secured Term Loan bear interest at variable rates based on LIBOR, as defined in the loan agreement, plus a specified spread based on the Company’s long-term senior unsecured debt rating (1.7% at March 31, 2012). The collateral for the Secured Term Loan is real estate assets, or investment interests in certain assets, that are already encumbered by first mortgage loans. The Company is required to comply with covenants similar to those contained in the Revolving Credit Facilities. The Company was in compliance with these covenants at March 31, 2012.

In January 2012, the Company entered into a $250 million unsecured term loan (the “Unsecured Term Loan” and together with the Secured Term Loan, the “Term Loans”) with a syndicate of financial institutions, for which Wells Fargo Bank National Association serves as the administrative agent. The Unsecured Term Loan consists of a $50 million tranche that matures on January 31, 2017, and a $200 million tranche that matures on January 31, 2019. The Unsecured Term Loan bears interest at variable rates based on LIBOR, as defined in the loan agreement, plus a specified spread based on the Company’s long-term senior unsecured debt rating (1.7% and 2.1% for the two tranches, respectively, at March 31, 2012). The Company is required to comply with covenants similar to those contained in the Revolving Credit Facilities. The Company was in compliance with these covenants at March 31, 2012.