Notes Payable and Unsecured Credit Facilities

9 Months Ended

Sep. 30, 2015

Notes Payable and Unsecured Credit Facilities

The Company’s debt outstanding consists of the following:



(in thousands)	September 30, 2015		December 31, 2014
Notes payable:
Fixed rate mortgage loans	$	479,413	518,993
Variable rate mortgage loans ⁽¹⁾	33,163		29,839
Fixed rate unsecured loans	1,296,076		1,397,525
Total notes payable	1,808,652		1,946,357
Unsecured credit facilities:
Line of Credit	50,000		—
Term Loan	165,000		75,000
Total unsecured credit facilities	215,000		75,000
Total debt outstanding	$	2,023,652	2,021,357

⁽¹⁾ An interest rate swap is in place to establish a fixed interest rate on $28.1 million of this variable rate mortgage for both periods. See note 6.

The weighted average contractual interest rates were 5.2% and 1.1% on the fixed rate and variable rate debt, respectively, at September 30, 2015. Significant financing activity since December 31, 2014 includes the following:


•	The Company repaid three mortgages totaling $76.0 million that were scheduled to mature during 2015;


•	The Company borrowed $50.0 million, net of repayments, on its $800.0 million Line of Credit (the "Line");

•

In May 2015, the Company amended its Line to extend the maturity to May 13, 2019 and reduced the applicable interest rate. Based on current credit ratings, the Line bears interest at an annual rate of LIBOR plus 92.5 basis points on any drawn balance plus an annual 15 basis point facility fee on the entire $800.0 million capacity. The interest rates are based on the higher of the Company's current corporate credit ratings issued by Moody's or S&P. Further, the Company has options to extend the maturity for two additional six-month periods.


•	In August 2015, the Company issued $250.0 million of 3.90% fixed rate ten-year unsecured public debt, which matures on November 1, 2025.


•	The proceeds from the public debt offering, along with borrowings of $90.0 million on the Term Loan, were used to repay $350.0 million of 5.25% fixed rate ten-year unsecured public debt that matured.


•	In September 2015, the Company assumed a mortgage with a fair value of $42.8 million upon acquisition of University Commons.

As of September 30, 2015, scheduled principal payments and maturities on notes payable were as follows:



(in thousands)	September 30, 2015
Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Mortgage Loan Maturities	Unsecured Maturities ⁽¹⁾			Total
2015	$	2,127	—	—			2,127
2016	6,603		41,374	—			47,977
2017	5,937		116,383	400,000		⁽²⁾	522,320
2018	5,021		57,253	—			62,274
2019	4,044		106,000	215,000			325,044
Beyond 5 Years	16,274		141,362	900,000			1,057,636
Unamortized debt premiums (discounts), net	—		10,198	(3,924	)		6,274
Total	$	40,006	472,570	1,511,076			2,023,652

⁽¹⁾ Includes unsecured public debt and unsecured credit facilities.

⁽²⁾ During October 2015, the Company notified the trustee that it will redeem $100.0 million of the 2017 unsecured public debt on November 27, 2015.

The Company was in compliance as of September 30, 2015 with the financial and other covenants under its unsecured public debt and unsecured credit facilities.