Debt

3 Months Ended

Mar. 31, 2018

The Company had the following mortgages and notes payable outstanding as of March 31, 2018 and December 31, 2017:



	March 31, 2018			December 31, 2017
Mortgages and notes payable	$	690,074		$	697,068
Unamortized debt issuance costs	(7,080		)	(7,258		)
	$	682,994		$	689,810

Interest rates, including imputed rates on mortgages and notes payable, ranged from 2.2% to 7.8% at March 31, 2018 and December 31, 2017 and all mortgages and notes payables mature between 2018 and 2036 as of March 31, 2018. The weighted-average interest rate was 4.6% at March 31, 2018 and December 31, 2017.

The Company had the following senior notes outstanding as of March 31, 2018 and December 31, 2017:



Issue Date	March 31, 2018			December 31, 2017			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	(1,439		)	(1,507		)
Unamortized debt issuance cost	(3,154		)	(3,295		)
	$	495,407		$	495,198

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 $1,105,000 unsecured credit agreement with KeyBank National Association, as agent. With lender approval, the Company can increase the size of the amended facility to an aggregate of $2,010,000. A summary of the significant terms are as follows:



	Maturity Date	Current Interest Rate
$505,000 Revolving Credit Facility⁽¹⁾	August 2019	LIBOR + 1.00%
$300,000 Term Loan⁽²⁾⁽⁴⁾	August 2020	LIBOR + 1.10%
$300,000 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 March 31, 2018, the revolving credit facility had $100,000 borrowings outstanding and availability of $405,000, 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 $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 $255,000 of outstanding LIBOR-based borrowings.


(4)	The aggregate unamortized debt issuance costs for the term loans were $3,043 and $3,337 as of March 31, 2018 and December 31, 2017, respectively.

The Company was in compliance with all applicable financial covenants contained in its corporate level debt agreements at March 31, 2018.

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, are open for redemption at the Company's option, bore interest at a fixed rate of 6.804% through April 2017 and bear interest at a variable rate of three month LIBOR plus 170 basis points through maturity. The interest rate at March 31, 2018 was 3.5%. As of March 31, 2018 and December 31, 2017, there was $129,120 original principal amount of Trust Preferred Securities outstanding and $1,899 and $1,924, respectively, of unamortized debt issuance costs.

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 March 31, 2018 and December 31, 2017:



	March 31, 2018			December 31, 2017
Mortgages and notes payable	$	214,458		$	214,303
Unamortized debt issuance costs	(1,493		)	(1,511		)
	$	212,965		$	212,792

Interest rates, including imputed rates, ranged from 4.0% to 6.5% at March 31, 2018 and December 31, 2017, and the mortgages and notes payable mature between 2019 and 2033. The weighted-average interest rate at March 31, 2018 and December 31, 2017 was approximately 4.8%.

Lexington, and the Partnership as co-borrower, have a $1,105,000 unsecured credit agreement with KeyBank National Association, as agent. With lender approval, Lexington can increase the size of the amended facility to an aggregate $2,010,000. A summary of the significant terms are as follows:



	Maturity Date	Current Interest Rate
$505,000 Revolving Credit Facility⁽¹⁾	August 2019	LIBOR + 1.00%
$300,000 Term Loan⁽²⁾	August 2020	LIBOR + 1.10%
$300,000 Term Loan⁽³⁾	January 2021	LIBOR + 1.10%


(1)	Maturity date can be extended to August 2020 at Lexington's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At March 31, 2018, the revolving credit facility had $100,000 of borrowings outstanding and availability of $405,000 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 $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 $255,000 of outstanding LIBOR-based borrowings.

Lexington was in compliance with all applicable financial covenants contained in its corporate level debt agreements at March 31, 2018.

In accordance with the guidance of ASC 405-40, 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 $147,692 and $157,789 as of March 31, 2018 and December 31, 2017, 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.