Notes Payable and Unsecured Credit Facilities

The Company’s outstanding debt consists of the following:



	December 31,
(in thousands)	2015		2014
Notes payable:
Fixed rate mortgage loans	$	477,022	518,993
Variable rate mortgage loans ⁽¹⁾	34,154		29,839
Fixed rate unsecured loans	1,196,302		1,397,525
Total notes payable	1,707,478		1,946,357
Unsecured credit facilities:
Line	—		—
Term Loan	165,000		75,000
Total unsecured credit facilities	165,000		75,000
Total debt outstanding	$	1,872,478	2,021,357

⁽¹⁾ An interest rate swap is in place to establish a fixed interest rate of 3.696% on $28.1 million of this variable rate mortgage for both periods. The underlying debt maintains a variable interest rate of 1 month LIBOR plus 150 basis points and matures October 16, 2020. See note 10.

Notes Payable

Notes payable consist of mortgage loans secured by properties and unsecured public debt. Mortgage loans may be prepaid, but could be subject to yield maintenance premiums. Mortgage loans are generally due in monthly installments of principal and interest or interest only, whereas, interest on unsecured public debt is payable semi-annually.

The Company is required to comply with certain financial covenants for its unsecured public debt as defined in the indenture agreements such as the following ratios: Consolidated Debt to Consolidated Assets, Consolidated Secured Debt to Consolidated Assets, Consolidated Income for Debt Service to Consolidated Debt Service, and Unencumbered Consolidated Assets to Unsecured Consolidated Debt. As of December 31, 2015, management of the Company believes it is in compliance with all financial covenants for its unsecured public debt.

As of December 31, 2015, the key terms of the Company's fixed rate notes payable are as follows:



		Fixed Interest Rates
	Maturing Through	Minimum	Maximum	Weighted Average
Secured mortgage loans	2032	3.30%	8.40%	6.10%
Unsecured public debt	2025	3.75%	6.00%	4.80%

Unsecured Credit Facilities

The Company has an unsecured line of credit commitment (the "Line") and an unsecured term loan commitment (the "Term Loan") under separate credit agreements with a syndicate of banks.

The Company is required to comply with certain financial covenants as defined in the Line and Term Loan credit agreements, such as Ratio of Indebtedness to Total Asset Value ("TAV"), Ratio of Unsecured Indebtedness to Unencumbered Asset Value, Ratio of Adjusted Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”) to Fixed Charges, Ratio of Secured Indebtedness to TAV, Ratio of Unencumbered Net Operating Income to Unsecured Interest Expense, and other covenants customary with this type of unsecured financing. As of December 31, 2015, management of the Company believes it is in compliance with all financial covenants for the Line and Term Loan.

The key terms of the Line and Term Loan follow:

December 31, 2015

(in thousands)

Total Capacity

Remaining Capacity

Maturity

Variable Interest Rate ⁽⁵⁾

Fee

Line

800,000

⁽¹⁾

794,100

⁽²⁾

5/13/2019

⁽³⁾

LIBOR plus 0.925 basis points

0.150%

⁽⁴⁾

Term Loan

165,000

—

6/27/2019

LIBOR plus 0.975 basis points

⁽⁶⁾

⁽¹⁾The Company has the ability to increase the Line through an accordion feature to $1.0 billion.

⁽²⁾ Borrowing capacity is reduced by the balance of outstanding borrowings and commitments under outstanding letters of credit.

⁽³⁾Maturity is subject to two six month extensions at the Company's option.

⁽⁴⁾The unused facility fee is subject to an adjustment based on the higher of the Company's corporate credit ratings from Moody's and S&P.

⁽⁵⁾ Interest rate is subject to Regency maintaining its corporate credit and senior unsecured ratings at BBB.

⁽⁶⁾ Annual fee.

Scheduled principal payments and maturities on notes payable and unsecured credit facilities were as follows:



(in thousands)	December 31, 2015
Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Mortgage Loan Maturities	Unsecured Maturities ⁽¹⁾		Total
2016	$	6,167	41,442	—		47,609
2017	5,778		117,298	300,000		423,076
2018	5,103		57,358	—		62,461
2019	4,130		106,000	165,000		275,130
2020	3,986		84,011	150,000		237,997
Beyond 5 Years	12,347		58,254	750,000		820,601
Unamortized debt premiums (discounts), net	—		9,302	(3,698	)	5,604
Total notes payable	$	37,511	473,665	1,361,302		1,872,478

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