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Notes Payable, Unsecured Notes and Credit Facility | 9 Months Ended
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Sep. 30, 2014
Debt Disclosure [Abstract] |
Notes Payable, Unsecured Notes and Credit Facility | Notes Payable, Unsecured Notes and Credit Facility The Company’s mortgage notes payable, unsecured notes, Term Loan and Credit Facility, both as defined below, as of September 30, 2014 and December 31, 2013, are summarized below (dollars in thousands). The following amounts and discussion do not include the mortgage notes related to the communities classified as held for sale, if any, as of September 30, 2014 and December 31, 2013, as shown in the Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 7, “Real Estate Disposition Activities”).
| 9/30/2014 |  | 12/31/2013
Fixed rate unsecured notes (1) | $ | 2,450,000 |  |  | $ | 2,600,000 |
Term Loan | 250,000 |  |  | — |
Fixed rate mortgage notes payable - conventional and tax-exempt (2) | 2,405,000 |  |  | 2,418,389 |
Variable rate mortgage notes payable - conventional and tax-exempt | 1,048,118 |  |  | 1,011,609 |
Total mortgage notes payable and unsecured notes | 6,153,118 |  |  | 6,029,998 |
Credit Facility | — |  |  | — |
Total mortgage notes payable, unsecured notes and Credit Facility | $ | 6,153,118 |  |  | $ | 6,029,998 |
_____________________________________
(1) | Balances at September 30, 2014 and December 31, 2013 exclude $4,701 and $5,291 of debt discount, respectively, as reflected in unsecured notes, net on the Company’s Condensed Consolidated Balance Sheets.
(2) | Balances at September 30, 2014 and December 31, 2013 exclude $93,351 and $120,684 of debt premium, respectively, as reflected in mortgage notes payable on the Company’s Condensed Consolidated Balance Sheets.
The following debt activity occurred during the nine months ended September 30, 2014:
• | In March 2014, the Company entered into a $300,000,000 variable rate unsecured term loan that matures in March 2021 (the “Term Loan”). At September 30, 2014, the Company had drawn $250,000,000 of the available $300,000,000, with the option to draw the additional $50,000,000 until March 2015.
• | In April 2014, in conjunction with certain requirements associated with the development of an apartment community, the Company entered into a $53,000,000 secured mortgage loan maturing in 2019, with an option to extend the maturity to 2024. The mortgage is comprised of a $15,000,000 fixed rate note with an interest rate of 2.99% and a $38,000,000 variable rate note at the London Interbank Offered Rate ("LIBOR") plus 2.00%.
• | Pursuant to its scheduled maturity in April 2014, the Company repaid $150,000,000 principal amount of unsecured notes with a stated coupon of 5.375%.
• | In June 2014, in conjunction with the disposition of an operating community, the Company repaid a fixed rate secured mortgage loan in the amount of $10,427,000 with an interest rate of 6.19% in advance of its November 2015 maturity date. In accordance with the requirements of the master credit agreement governing this and certain other secured borrowings, the Company repaid an additional $5,914,000 principal amount of secured borrowings for eight other operating communities. The Company incurred a charge for early debt extinguishment of $412,000.
The Company has a $1,300,000,000 revolving variable rate unsecured credit facility with a syndicate of banks (the “Credit Facility”) which matures in April 2017. The Company has the option to extend the maturity by up to one year under two, six month extension options for an aggregate fee of $1,950,000. The Credit Facility bears interest at varying levels based on the LIBOR rating levels achieved on the unsecured notes and on a maturity schedule selected by the Company. The current stated pricing is LIBOR plus 1.05% (1.20% at September 30, 2014), assuming a one month borrowing rate. The annual facility fee is approximately $1,950,000 based on the $1,300,000,000 facility size and based on the Company’s current credit rating. The Company had no borrowings outstanding under the Credit Facility and had $52,347,000 and $65,018,000 outstanding in letters of credit that reduced the borrowing capacity as of September 30, 2014 and December 31, 2013, respectively. In the aggregate, secured notes payable mature at various dates from November 2015 through July 2066, and are secured by certain apartment communities and improved land parcels (with a net carrying value of $4,440,175,000 excluding communities classified as held for sale, as of September 30, 2014). As of September 30, 2014, the Company has guaranteed approximately $257,970,000 of mortgage notes payable held by wholly-owned subsidiaries; all such mortgage notes payable are consolidated for financial reporting purposes. The weighted average interest rate of the Company’s fixed rate mortgage notes payable (conventional and tax-exempt) was 4.5% at both September 30, 2014 and December 31, 2013. The weighted average interest rate of the Company’s variable rate mortgage notes payable (conventional and tax exempt), the Term Loan and its Credit Facility, including the effect of certain financing related fees, was 1.8% at both September 30, 2014 and December 31, 2013. Scheduled payments and maturities of mortgage notes payable and unsecured notes outstanding at September 30, 2014 are as follows (dollars in thousands):
Year |  | Secured notes payments |  | Secured notes maturities |  | Unsecured notes maturities |  | Stated interest rate of unsecured notes
2014 |  | $ | 4,641 |  |  | $ | — |  |  | $ | — |  |  | — |
2015 |  | 17,871 |  |  | 586,703 |  |  | — |  |  | — |
2016 |  | 19,036 |  |  | 16,255 |  |  | 250,000 |  |  | 5.750 | %
2017 |  | 20,257 |  |  | 710,491 |  |  | 250,000 |  |  | 5.700 | %
2018 |  | 19,646 |  |  | 76,930 |  |  | — |  |  | — |
2019 |  | 7,145 |  |  | 658,475 |  |  | — |  |  | — |
2020 |  | 6,205 |  |  | 50,824 |  |  | 250,000 |  |  | 6.100 | %
|  |  |  |  |  |  |  | 400,000 |  |  | 3.625 | %
2021 |  | 5,985 |  |  | 27,844 |  |  | 250,000 |  |  | 3.950 | %
|  |  |  |  |  |  |  | 250,000 |  |  | LIBOR + 1.45% |
2022 |  | 6,352 |  |  | — |  |  | 450,000 |  |  | 2.950 | %
2023 |  | 6,596 |  |  | — |  |  | 350,000 |  |  | 4.200 | %
|  |  |  |  |  |  |  | 250,000 |  |  | 2.850 | %
Thereafter |  | 85,973 |  |  | 1,125,889 |  |  | — |  |  | — |
|  | $ | 199,707 |  |  | $ | 3,253,411 |  |  | $ | 2,700,000 |  |  |  |
The Company was in compliance at September 30, 2014 with certain customary financial and other covenants under the Credit Facility, the Term Loan, and the Company’s fixed-rate unsecured notes.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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