Notes Payable and Unsecured Credit Facilities

9 Months Ended

Sep. 30, 2020

Notes Payable and Unsecured Credit Facilities

5.	Notes Payable and Unsecured Credit Facilities

The Company’s outstanding debt, net of unamortized debt premium (discount) and debt issuance costs, consisted of the following:

(in thousands)	Weighted Average Contractual Rate	Weighted Average Effective Rate	September 30, 2020		December 31, 2019
Notes payable:
Fixed rate mortgage loans	4.4%	3.9%	$	338,024		342,020
Variable rate mortgage loans ⁽¹⁾	2.8%	2.9%		147,385		148,389
Fixed rate unsecured debt	3.8%	4.0%		3,238,514		2,944,752
Total notes payable				3,723,923		3,435,161
Unsecured credit facilities:
Line of Credit (the "Line")⁽²⁾	1.0%	1.4%		—		220,000
Term loans	2.0%	2.1%		264,605		264,383
Total unsecured credit facilities				264,605		484,383
Total debt outstanding			$	3,988,528		3,919,544

⁽¹⁾

Includes six mortgages with interest rates that vary on LIBOR based formulas. Four of these variable rate loans have interest rate swaps in place to fix the interest rates. The effective fixed rates of the loans range from 2.5% to 4.1%.

⁽²⁾

Weighted average effective rate for the Line is calculated based on a fully drawn Line balance.

Significant financing activity during 2020 includes:

•

On May 11, 2020, the Company issued $600 million of 3.70% senior unsecured public notes, which priced at 99.805%, and mature on June 15, 2030. Portions of the net proceeds were used to repay the outstanding balance on the Line and to redeem, on September 2, 2020, the entire $300 million outstanding of 3.75% Notes due 2022. The Company paid $325.1 million to redeem the notes, including $25.1 million for accrued interest and a make-whole premium. The remainder of the proceeds are held in cash and are expected to be used for general working capital purposes, potentially including repayment of indebtedness.

As of September 30, 2020, the Company has access to a remaining borrowing capacity on the Line of $1.2 billion, which matures in March 2022 and is subject to two additional six-month extensions at the Company’s election.

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

(in thousands)	September 30, 2020
Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Mortgage Loan Maturities		Unsecured Maturities ⁽¹⁾			Total
2020 ⁽²⁾	$	3,065		27,000		—			30,065
2021		11,598		74,101		—			85,699
2022		11,797		5,848		265,000			282,645
2023		10,124		59,374		—			69,498
2024		5,301		90,744		250,000			346,045
Beyond 5 Years		21,712		161,303		3,025,000			3,208,015
Unamortized debt premium/(discount) and issuance costs		—		3,442		(36,881	)		(33,439	)
Total	$	63,597		421,812		3,503,119			3,988,528

⁽¹⁾

Includes unsecured public and private debt and unsecured credit facilities.

⁽²⁾

Reflects scheduled principal payments for the remainder of the year.

The Company was in compliance as of September 30, 2020, with the financial and other covenants under its unsecured public and private placement debt and unsecured credit facilities, and expects to remain in compliance for the next twelve months and thereafter.