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Debt of the Operating Partnership
3 Months Ended
Mar. 31, 2020
Tanger Properties Limited Partnership [Member]  
Debt of the Operating Partnership Debt of the Operating Partnership

The debt of the Operating Partnership consisted of the following (in thousands):
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
 
 
 
 
 
March 31, 2020
 
December 31, 2019
 
 
Stated Interest Rate(s)
 
Maturity Date
 
Principal
 
Book Value(1)
 
Principal
 
Book Value(1)
Senior, unsecured notes:
 
 
 
 
 
 

 
 
 
 
 
 
Senior notes
 
3.875
%
 
 
 
December 2023
 
$
250,000

 
$
247,471

 
$
250,000

 
$
247,308

Senior notes
 
3.750
%
 
 
 
December 2024
 
250,000

 
248,218

 
250,000

 
248,127

Senior notes
 
3.125
%
 
 
 
September 2026
 
350,000

 
346,354

 
350,000

 
346,215

Senior notes
 
3.875
%
 
 
 
July 2027
 
300,000

 
297,050

 
300,000

 
296,953

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgages payable:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlantic City (2)(3)
 
5.14
%
-
7.65%
 
November 2021- December 2026
 
30,037

 
31,559

 
30,909

 
32,531

     Southaven
 
LIBOR

+
1.80%
 
April 2021
 
51,400

 
51,297

 
51,400

 
51,272

Unsecured term loan
 
LIBOR

+
1.00%
 
April 2024
 
350,000

 
347,531

 
350,000

 
347,367

Unsecured lines of credit
 
LIBOR

+
1.00%
 
October 2021
 
599,830

 
598,074

 

 

 
 
 
 
 
 
 
 
$
2,181,267

 
$
2,167,554

 
$
1,582,309

 
$
1,569,773

(1)
Including premiums and net of debt discount and debt origination costs.
(2)
The effective interest rate assigned during the purchase price allocation to the Atlantic City mortgages assumed during the acquisition in 2011 was 5.05%.
(3)
Principal and interest due monthly with remaining principal due at maturity.

Certain of our properties, which had a net book value of approximately $171.7 million at March 31, 2020, serve as collateral for mortgages payable. We maintain unsecured lines of credit that provide for borrowings of up to $600.0 million. The unsecured lines of credit include a $20.0 million liquidity line and a $580.0 million syndicated line. The syndicated line may be increased up to $1.2 billion through an accordion feature in certain circumstances. As of March 31, 2020, letters of credit totaling approximately $170,000 were issued under the lines of credit.

We provide guarantees to lenders for our joint ventures which include standard non-recourse carve out indemnifications for losses arising from items such as but not limited to fraud, physical waste, payment of taxes, environmental indemnities, misapplication of insurance proceeds or security deposits and failure to maintain required insurance. For construction and term loans, we may include a guaranty of completion as well as a principal guaranty ranging from 5% to 100% of principal.  The principal guarantees include terms for release or reduction based upon satisfactory completion of construction and performance targets including occupancy thresholds and minimum debt service coverage tests. As of March 31, 2020, the maximum amount of unconsolidated joint venture debt guaranteed by the Company was $19.2 million.

The unsecured lines of credit and senior unsecured notes include covenants that require the maintenance of certain ratios, including debt service coverage and leverage, and limit the payment of dividends such that dividends and distributions will not exceed funds from operations, as defined in the agreements, for the prior fiscal year on an annual basis or 95% of funds from operations on a cumulative basis. As of March 31, 2020, we believe we were in compliance with all of our debt covenants.

Unsecured Lines of Credit
As of December 31, 2019, there were no outstanding balances under our unsecured lines of credit. In March 2020, in response to the COVID-19 pandemic, we drew down approximately $599.8 million under our unsecured lines of credit to increase liquidity and preserve financial flexibility to help ensure that the Company is able to meet its obligations for a sustained period of time until there is more clarity regarding the impact of the pandemic.
Interest rates

In February 2020, due to a change in our credit rating, our interest rate spread over LIBOR on our $600.0 million unsecured line of credit facility increased from 0.875% to 1.0% and our annual facility fee increased from 0.15% to 0.20%. In addition, our interest rate spread over LIBOR on our $350.0 million unsecured term loan increased from 0.90% to 1.0%.

Debt Maturities

Maturities of the existing long-term debt as of March 31, 2020 for the next five years and thereafter are as follows (in thousands):
Calendar Year
 
Amount

For the remainder of 2020
 
$
2,694

2021
 
657,023

2022
 
4,436

2023
 
254,768

2024
 
605,140

Thereafter
 
657,206

Subtotal
 
2,181,267

Net discount and debt origination costs
 
(13,713
)
Total
 
$
2,167,554


Given the financial implications of COVID-19 and potential defaults on our debt covenants associated with our line of credit and term loan, we have considered our short-term (one year or less from the date of filing these financial statements) liquidity needs and the adequacy of our estimated cash flows from operating activities and other financing sources to meet these needs. These other sources include but are not limited to: existing cash, ongoing relationships with certain financial institutions, our ability to sell debt or issue equity subject to market conditions and proceeds from the potential sale of non-core assets. We believe that we have access to the necessary financing to fund our short-term liquidity needs.