Notes Payable and Unsecured Credit Facilities

The Company’s outstanding debt consists of the following:



	December 31,
(in thousands)	2017			2016
Notes payable:
Fixed rate mortgage loans	$	520,193		384,786
Variable rate mortgage loans	125,866		⁽¹⁾	86,969
Fixed rate unsecured public and private debt	2,325,656			892,170
Total notes payable	$	2,971,715		1,363,925
Unsecured credit facilities:
Line of Credit	60,000			15,000
Term Loans	563,262			263,495
Total unsecured credit facilities	$	623,262		278,495
Total debt outstanding	$	3,594,977		1,642,420

⁽¹⁾Includes five mortgages, whose interest varies on LIBOR based formulas. Three of these variable rate loans have interest rate swaps in place to fix the interest rates at a range of 2.8% to 4.1%.

Notes Payable

Notes payable consist of mortgage loans secured by properties and unsecured public and private 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 and private 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, 2017, management of the Company believes it is in compliance with all financial covenants for its unsecured public debt.

As of December 31, 2017, the key interest rates of the Company's notes payables were as follows:



		Interest Rates
	Maturing Through	Minimum	Maximum	Weighted Average Effective Rate	Weighted Average Contractual Rate
Mortgage loans ⁽¹⁾	2036	2.39%	8.00%	4.23%	4.77%
Fixed rate unsecured public and private debt	2047	3.60%	6.00%	4.11%	4.57%

⁽¹⁾ Interest rates disclosed for mortgages include variable rate mortgages using the fixed interest rates from the interest rate swaps, as disclosed in Note 8.

Unsecured Credit Facilities

The Company has an unsecured line of credit commitment (the "Line") and unsecured term loan commitments (the "Term Loans") 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, 2017, 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 Loans were as follows:



	December 31, 2017
(in thousands)	Total Capacity		Remaining Capacity			Maturing Through		Variable Interest Rate ⁽⁴⁾		Fee			Weighted Average Effective Rate		Weighted Average Contractual Rate
Line ⁽⁷⁾	$	1,000,000	$	930,600	⁽¹⁾	5/13/2019	⁽²⁾	LIBOR plus 0.925%		$	75	^{(3) (6)}	2.30	%	2.12	%
Term Loan ⁽⁸⁾	$	265,000	$	—		1/5/2022		LIBOR plus 0.95%	⁽⁵⁾	$	35	⁽⁶⁾	2.20	%	2.00	%
Term Loan ⁽⁸⁾	$	300,000	$	—		12/2/2020		LIBOR plus 0.95%	⁽⁹⁾	$	35	⁽⁶⁾	2.80	%	2.77	%

⁽¹⁾ Borrowing capacity is reduced by the balance of outstanding borrowings and commitments under outstanding letters of credit.
⁽²⁾Maturity is subject to two six month extensions at the Company's option.
⁽³⁾In addition, carries a commitment fee that is subject to adjustment based on the higher of the Company's corporate credit ratings from Moody's and S&P. At December 31, 2017, the commitment fee was 0.15%.
⁽⁴⁾ Interest rate spread is subject to Regency maintaining its corporate credit and senior unsecured ratings at BBB+.
⁽⁵⁾The interest rate on the underlying debt is LIBOR + 0.95%. Effective July 7, 2016, an interest rate swap is in place to fix the interest on the entire balance at 2% through maturity.
⁽⁶⁾ Annual fee, in thousands.
⁽⁷⁾Weighted average contractual and effective rates for the Line are calculated based on a fully drawn Line balance.
⁽⁸⁾ Weighted average contractual and effective rates for the Term Loans are based on the fixed rate with the interest rate swap.
⁽⁹⁾ The interest rate on the underlying debt is LIBOR + 0.95%, with an interest rate swap in place to fix the interest on the entire balance at 2.774% through maturity.

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



(in thousands)	December 31, 2017
Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Mortgage Loan Maturities	Unsecured Maturities ⁽¹⁾		Total
2018	$	10,641	112,226	—		122,867
2019	9,360		21,787	60,000		91,147
2020	11,122		78,580	450,000		539,702
2021	11,426		66,751	250,000		328,177
2022	11,618		5,848	565,000		582,466
Beyond 5 Years	37,056		260,328	1,650,000		1,947,384
Unamortized debt premium/(discount) and issuance costs	—		9,316	(26,082	)	(16,766	)
Total notes payable	$	91,223	554,836	2,948,918		3,594,977

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

The Company has $112.2 million of debt maturing over the next twelve months, all of which is in the form of non-recourse mortgage loans. The Company currently intends to payoff the maturing balances with proceeds from unsecured borrowings and leave the properties unencumbered. The Company has sufficient capacity on its Line to repay the maturing debt, if necessary.