Unsecured Debt and Lines of Credit

6 Months Ended

Jun. 30, 2014

Unsecured Debt and Lines of Credit [Abstract]

(6)	Unsecured Debt and Lines of Credit

Essex does not have any indebtedness as all debt is incurred by the Operating Partnership. Essex guarantees the Operating Partnership’s unsecured debt including the revolving credit facilities for the full term of such facilities.

In April 2014, the Company, through its operating partnership, assumed $900.0 million aggregate principal amount of BRE’s 5.500% senior notes due 2017; 5.200% senior notes due 2021; and 3.375% senior notes due 2023 and mortgage notes payable with a principal balance of $711.3 million with remaining loan terms ranging from one to seven years and a weighted average interest rate of 5.6%. The Company recorded the debt assumed at fair value in accordance with purchase accounting. As a result, a premium of $124.5 million was recorded to adjust the carrying value of their fair value which is being amortized as a reduction in interest expense over the term of the related debt using the effective interest method.

Unsecured debt and lines of credit consist of the following as of June 30, 2014 and December 31, 2013 ($ in thousands):

	June 30, 2014			December 31, 2013			Weighted Average Maturity In Years

Bonds private placement - fixed rate	$	465,000		$	465,000			4.7
Term loan - variable rate		350,000			350,000			2.7
Bonds public offering - fixed rate		1,933,494			595,023			7.5
Unsecured debt		2,748,494			1,410,023
Lines of credit		66,975			219,421			4.7
Total unsecured debt and lines of credit	$	2,815,469		$	1,629,444

Weighted average interest rate on fixed rate unsecured bonds		3.7	%		4.0	%
Weighted average interest rate on variable rate term loan		2.4	%		2.5	%
Weighted average interest rate on line of credit		1.7	%		2.2	%

The aggregate scheduled principal payments of the Company’s outstanding debt as of June 30, 2014 are as follows:

2014	$	-
2015		66,721
2016		369,225
2017		669,962
2018		313,541
Thereafter		3,522,146
	$	4,941,595

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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