Debt

6 Months Ended

Jun. 30, 2016

The Company had the following mortgages and notes payable outstanding as of June 30, 2016 and December 31, 2015:



	June 30, 2016			December 31, 2015
Mortgages and notes payable	$	848,025		$	882,952
Unamortized debt issuance costs	(9,640		)	(10,309		)
	$	838,385		$	872,643

Interest rates, including imputed rates on mortgages and notes payable, ranged from 2.2% to 7.8% at June 30, 2016 and December 31, 2015 and the mortgages and notes payables mature between 2016 and 2031 as of June 30, 2016. The weighted-average interest rate was 4.9% at June 30, 2016 and December 31, 2015.

The Company had the following senior notes outstanding as of June 30, 2016 and December 31, 2015:



Issue Date	June 30, 2016			December 31, 2015			Interest Rate		Maturity Date	Issue Price
May 2014	$	250,000		$	250,000		4.40	%	June 2024	99.883	%
June 2013	250,000			250,000			4.25	%	June 2023	99.026	%
	500,000			500,000
Unamortized discount	(1,916		)	(2,053		)
Unamortized debt issuance cost	(4,140		)	(4,421		)
	$	493,944		$	493,526

Each series of the senior notes is unsecured and requires payment of interest semi-annually in arrears. The Company may redeem the notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium.

The Company has a $905,000 unsecured credit agreement with KeyBank National Association, as agent. With lender approval, the Company can increase the size of the facility to an aggregate $1,810,000. A summary of the significant terms are as follows:



	Maturity Date	Current Interest Rate
$400,000 Revolving Credit Facility⁽¹⁾	August 2019	LIBOR + 1.00%
$250,000 Term Loan⁽²⁾⁽⁴⁾	August 2020	LIBOR + 1.10%
$255,000 Term Loan⁽³⁾⁽⁴⁾	January 2021	LIBOR + 1.10%


(1)	Maturity date can be extended to August 2020 at the Company's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At June 30, 2016, the revolving credit facility had $123,000 outstanding and availability of $277,000, subject to covenant compliance.


(2)	The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on the $250,000 of outstanding LIBOR-based borrowings.


(3)	The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on the $255,000 of outstanding LIBOR-based borrowings.


(4)	The aggregate unamortized debt issuance costs for the term loans were $4,416 and $4,924 as of June 30, 2016 and December 31, 2015, respectively.

The Company was in compliance with all applicable financial covenants contained in its corporate level debt agreements at June 30, 2016.

During 2010, the Company issued $115,000 aggregate principal amount of 6.00% Convertible Guaranteed Notes due 2030. The notes pay interest semi-annually in arrears and mature in January 2030. The holders of the notes may require the Company to repurchase their notes in January 2017, January 2020 and January 2025 for cash equal to 100% of the notes to be repurchased, plus any accrued and unpaid interest. The Company may not redeem any notes prior to January 2017, except to preserve its REIT status. The notes have a current conversion rate of 159.0145 common shares per one thousand principal amount of the notes, representing a conversion price of approximately $6.29 per common share. The conversion rate is subject to adjustment under certain circumstances, including increases in the Company's dividend rate above a certain threshold and the issuance of stock dividends. The notes are convertible by the holders under certain circumstances for cash, common shares or a combination of cash and common shares at the Company's election. The notes are convertible prior to the close of business on the second business day immediately preceding the stated maturity date, at any time beginning in January 2029 and also upon the occurrence of specified events. During the six months ended June 30, 2016 and 2015, $500 and $3,428, respectively, aggregate principal amount of the notes were satisfied/converted for $672 and 519,664 common shares, respectively. The satisfaction/conversion resulted in debt satisfaction charges of $32 and $438 for the six months ended June 30, 2016 and 2015, respectively.

Below is a summary of additional disclosures related to the 6.00% Convertible Guaranteed Notes due 2030.



	6.00% Convertible Guaranteed Notes due 2030
Balance Sheets:	June 30, 2016			December 31, 2015
Principal amount of debt component	$	11,900		$	12,400
Unamortized discount	(110		)	(220		)
Unamortized debt issuance costs	(27		)	(54		)
Carrying amount of debt component	$	11,763		$	12,126
Carrying amount of equity component	$	(34,932	)	$	(34,784	)
Effective interest rate	8.0		%	7.8		%
Period through which discount is being amortized, put date	01/2017			01/2017
Aggregate if-converted value in excess of aggregate principal amount	$	6,935		$	2,863



	Three months ended June 30,				Six months ended June 30,
Statements of Operations:	2016		2015		2016		2015
6.00% Convertible Guaranteed Notes
Coupon interest	$	170	$	156	$	356	$	392
Discount amortization	51		55		104		122
	$	221	$	211	$	460	$	514

During 2007, the Company issued $200,000 original principal amount of Trust Preferred Securities. The Trust Preferred Securities, which are classified as debt, are due in 2037, were open for redemption at the Company's option commencing April 2012 and bear interest at a fixed rate of 6.804% through April 2017 and thereafter, at a variable rate of three month LIBOR plus 170 basis points through maturity. As of June 30, 2016 and December 31, 2015, there was $129,120 original principal amount of Trust Preferred Securities outstanding and $2,074 and $2,124, respectively, of unamortized debt issuance costs.

During the six months ended June 30, 2016 and 2015, in connection with the satisfaction of mortgage notes other than those disclosed elsewhere in these financial statements, the Company had debt satisfaction gains (charges), net of $(3) and $4,123, respectively.

LCIF [Member]

Debt Instrument [Line Items]

Debt

Mortgages and Notes Payable and Co-Borrower Debt

The Partnership had the following mortgages and notes payable outstanding as of June 30, 2016 and December 31, 2015:



	June 30, 2016			December 31, 2015
Mortgages and notes payable	$	383,609		$	437,492
Unamortized debt issuance costs	(4,527		)	(5,893		)
	$	379,082		$	431,599

Interest rates, including imputed rates, ranged from 4.0% to 6.5% at June 30, 2016 and December 31, 2015, and the mortgages and notes payable mature between 2019 and 2027. The weighted-average interest rate at June 30, 2016 and December 31, 2015 was approximately 4.7%.

Lexington, and the Partnership as co-borrower, have a $905,000 unsecured credit agreement with KeyBank National Association, as agent. With lender approval, Lexington can increase the size of the facility to an aggregate $1,810,000. A summary of the significant terms are as follows:



	Maturity Date	Current Interest Rate
$400,000 Revolving Credit Facility⁽¹⁾	August 2019	LIBOR + 1.00%
$250,000 Term Loan⁽²⁾	August 2020	LIBOR + 1.10%
$255,000 Term Loan⁽³⁾	January 2021	LIBOR + 1.10%


(1)	Maturity date can be extended to August 2020 at the Lexington's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At June 30, 2016, the revolving credit facility had $123,000 outstanding and availability of $277,000 subject to covenant compliance.


(2)	The interest rate ranges from LIBOR plus 0.90% to 1.75%. Interest-rate swap agreements were previously entered into to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on the $250,000 of outstanding LIBOR-based borrowings.


(3)	The interest rate ranges from LIBOR plus 0.90% to 1.75%. Interest-rate swap agreements were previously entered into to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on the $255,000 of outstanding LIBOR-based borrowings.

Lexington was in compliance with all applicable financial covenants contained in its corporate level debt agreements at June 30, 2016.

In accordance with the guidance of ASU 2013-04, the Partnership, as it is a co-borrower with Lexington, recognizes a proportion of the outstanding amounts of the above-mentioned term loans and revolving credit facility as co-borrower debt in the accompanying unaudited condensed consolidated balances sheets. In accordance with the Partnership’s partnership agreement, the Partnership is allocated a portion of these debts based on gross rental revenues, which represents its agreed to obligation. The Partnership's allocated co-borrower debt was $193,278 and $201,106 as of June 30, 2016 and December 31, 2015, respectively. Non-cash changes in co-borrower debt are recognized in partners’ capital in the accompanying unaudited condensed consolidated statements of changes in partners’ capital.

Mortgages payable and secured loans are generally collateralized by real estate and the related leases. Certain mortgages payable have yield maintenance or defeasance requirements relating to any prepayments. In addition, certain mortgages are cross-collateralized and cross-defaulted.