
8.	Debt

EQR does not have any indebtedness as all debt is incurred by the Operating Partnership. EQR guarantees the Operating Partnership’s revolving credit facility up to the maximum amount and for the full term of the facility. See Note 2 for a discussion regarding adoption of the new accounting standard impacting deferred financing costs.

Mortgage Notes Payable

As of September 30, 2016, the Company had outstanding mortgage debt of approximately $4.1 billion.

During the nine months ended September 30, 2016, the Company:


•	Repaid $440.8 million of 6.256% mortgage debt held in a Fannie Mae loan pool maturing in 2017 and incurred a prepayment penalty of approximately $29.3 million;


•	Repaid $65.5 million of various tax-exempt mortgage bonds maturing in 2026 through 2037 and incurred a prepayment penalty of approximately $0.2 million;


•	Repaid $57.9 million of conventional fixed-rate mortgage loans;


•	Repaid $0.9 million of conventional floating-rate mortgage loans;


•	Repaid $6.6 million of scheduled principal repayments on various mortgage debt; and


•	Assumed $43.4 million of mortgage debt on one acquired property.

The Company recorded $1.5 million of write-offs of unamortized deferred financing costs during the nine months ended September 30, 2016 as additional interest expense related to debt extinguishment of mortgages. The Company also recorded $20.7 million of write-offs of net unamortized premiums during the nine months ended September 30, 2016 as a reduction of interest expense related to debt extinguishment of mortgages.

As of September 30, 2016, the Company had $601.9 million of secured debt subject to third party credit enhancement.

As of September 30, 2016, scheduled maturities for the Company’s outstanding mortgage indebtedness were at various dates through May 28, 2061. At September 30, 2016, the interest rate range on the Company’s mortgage debt was 0.10% to 7.20%. During the nine months ended September 30, 2016, the weighted average interest rate on the Company’s mortgage debt was 4.34%.

Notes

As of September 30, 2016, the Company had outstanding unsecured notes of approximately $4.4 billion.

During the nine months ended September 30, 2016, the Company:


•	Repaid $228.9 million of 5.125% unsecured notes maturing in 2016 and incurred a prepayment penalty of approximately $1.4 million and repaid the remaining $271.1 million of 5.125% unsecured notes at maturity;


•	Repaid $400.0 million of 5.375% unsecured notes maturing in 2016 and incurred a prepayment penalty of approximately $9.5 million;


•	Repaid $255.9 million of 5.750% unsecured notes maturing in 2017 and incurred a prepayment penalty of approximately $16.5 million;


•	Repaid $46.1 million of 7.125% unsecured notes maturing in 2017 and incurred a prepayment penalty of approximately $4.6 million;


•	Repaid $250.0 million of 4.625% unsecured notes maturing in 2021 and incurred a prepayment penalty of approximately $31.6 million; and


•	Repaid $48.0 million of 7.570% unsecured notes maturing in 2026 and incurred a prepayment penalty of approximately $19.3 million.

The Company recorded $1.9 million of write-offs of unamortized deferred financing costs during the nine months ended September 30, 2016 as additional interest expense related to debt extinguishment of unsecured notes. The Company also recorded $25.2 million of write-offs of net unamortized premiums/discounts/OCI/treasury locks during the nine months ended September 30, 2016 as additional interest expense related to debt extinguishment of unsecured notes.

As of September 30, 2016, scheduled maturities for the Company’s outstanding notes were at various dates through June 1, 2045. At September 30, 2016, the interest rate range on the Company’s notes was 1.261% to 7.57%. During the nine months ended September 30, 2016, the weighted average interest rate on the Company’s notes was 4.59%.

Line of Credit and Commercial Paper

On January 11, 2013, the Company replaced its existing $1.75 billion facility with a $2.5 billion unsecured revolving credit facility maturing April 2, 2018. The Company has the ability to increase available borrowings by an additional $500.0 million by adding additional banks to the facility or obtaining the agreement of existing banks to increase their commitments. The interest rate on advances under the facility will generally be LIBOR plus a spread (currently 0.95%) and the Company pays an annual facility fee (currently 15 basis points). Both the spread and the facility fee are dependent on the credit rating of the Company's long-term debt.

On February 2, 2015, the Company entered into an unsecured commercial paper note program in the United States. The Company may borrow up to a maximum of $500.0 million under this program subject to market conditions. The notes will be sold under customary terms in the United States commercial paper note market and will rank pari passu with all of the Company's other unsecured senior indebtedness. As of September 30, 2016, there was no commercial paper outstanding. The notes bear interest at various floating rates with a weighted average of 0.96% for the nine months ended September 30, 2016.

As of September 30, 2016, the amount available on the revolving credit facility was $2.48 billion (net of $24.6 million which was restricted/dedicated to support letters of credit). During the nine months ended September 30, 2016, the weighted average interest rate on the revolving credit facility was 1.34%.