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Notes Payable, Unsecured Notes and Credit Facility | 9 Months Ended
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Sep. 30, 2015
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, 2015 and December 31, 2014, 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, 2015 and December 31, 2014, as shown in the Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, “Real Estate Disposition Activities”).
| 9/30/2015 |  | 12/31/2014
Fixed rate unsecured notes (1) | $ | 3,275,000 |  |  | $ | 2,750,000 |
Term Loan | 300,000 |  |  | 250,000 |
Fixed rate mortgage notes payable - conventional and tax-exempt (2) | 1,668,496 |  |  | 2,400,677 |
Variable rate mortgage notes payable - conventional and tax-exempt (2) | 1,045,486 |  |  | 1,047,461 |
Total mortgage notes payable and unsecured notes | 6,288,982 |  |  | 6,448,138 |
Credit Facility | — |  |  | — |
Total mortgage notes payable, unsecured notes and Credit Facility | $ | 6,288,982 |  |  | $ | 6,448,138 |
_____________________________________
(1) | Balances at September 30, 2015 and December 31, 2014 exclude $6,902 and $6,735 of debt discount, respectively, as reflected in unsecured notes, net on the Company’s Condensed Consolidated Balance Sheets.
(2) | Balances at September 30, 2015 and December 31, 2014 exclude $24,647 and $84,449 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, 2015:
• | In January 2015, in conjunction with the disposition of Avalon on Stamford Harbor, the Company substituted AVA Belltown as collateral for the disposed community's outstanding fixed rate secured mortgage loan.
• | In March 2015, the Company borrowed the final $50,000,000 available under the $300,000,000 variable rate unsecured term loan (the “Term Loan”), maturing in March 2021.
• | In April 2015, the Company repaid an aggregate of $481,582,000 principal amount of secured indebtedness, which includes eight fixed rate mortgage loans secured by eight wholly-owned operating communities, at par. The indebtedness had an aggregate effective interest rate of 3.12%, and a stated maturity date of November 2015. The Company incurred a gain on the early debt extinguishment of $8,724,000, representing the excess of the write-off of unamortized premium resulting from the debt assumed in the Archstone Acquisition, as defined in our Form 10-K for the year ended December 31, 2014.
• | In May 2015, the Company issued $525,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for net proceeds of approximately $520,653,000. The notes mature in June 2025 and were issued at a 3.45% coupon interest rate.
• | In June 2015, the Company repaid a $15,778,000 fixed rate secured mortgage note with an effective interest rate of 7.50% in advance of its February 2041 maturity date, recognizing a charge of $455,000 for a prepayment penalty and write-off of deferred financing costs.
• | In June 2015, the Company repaid a $7,805,000 fixed rate secured mortgage note with an effective interest rate of 7.84% at par and without penalty in advance of its May 2027 maturity date, recognizing a charge of $263,000 for the write-off of deferred financing costs.
• | In June 2015, the Company repaid the $74,531,000 fixed rate secured mortgage note secured by Edgewater with an effective interest rate of 5.95% at par and without penalty in advance of its May 2019 maturity date, recognizing a charge of $259,000 for the write-off of deferred financing costs.
• | In July 2015, the Company repaid a $140,346,000 fixed rate secured mortgage note with an effective interest rate of 5.56% in advance of its May 2053 maturity date, resulting in a recognized gain of $18,987,000, consisting of the write-off of unamortized premium net of deferred financing costs of $30,215,000, partially offset by a prepayment penalty of $11,228,000.
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 0.95% (1.14% at September 30, 2015), 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 $43,580,000 and $49,407,000 outstanding in letters of credit that reduced the borrowing capacity as of September 30, 2015 and December 31, 2014, respectively. In the aggregate, secured notes payable mature at various dates from December 2015 through July 2066, and are secured by certain apartment communities (with a net carrying value of $3,363,527,000, excluding communities classified as held for sale, as of September 30, 2015). As of September 30, 2015, the Company has guaranteed approximately $234,500,000 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 4.7% and 4.5% at September 30, 2015 and December 31, 2014, respectively. 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 1.7% and 1.8% at September 30, 2015 and December 31, 2014, respectively. Scheduled payments and maturities of mortgage notes payable and unsecured notes outstanding at September 30, 2015 are as follows (dollars in thousands):
Year |  | Secured notes payments |  | Secured notes maturities |  | Unsecured notes maturities |  | Stated interest rate of unsecured notes
2015 |  | $ | 4,295 |  |  | $ | 103,743 |  |  | $ | — |  |  | — | %
2016 |  | 16,164 |  |  | 16,256 |  |  | 250,000 |  |  | 5.750 | %
2017 |  | 17,166 |  |  | 709,991 |  |  | 250,000 |  |  | 5.700 | %
2018 |  | 16,364 |  |  | 76,673 |  |  | — |  |  | — | %
2019 |  | 5,099 |  |  | 588,428 |  |  | — |  |  | — | %
2020 |  | 4,057 |  |  | 50,825 |  |  | 250,000 |  |  | 6.100 | %
|  |  |  |  |  |  |  | 400,000 |  |  | 3.625 | %
2021 |  | 4,017 |  |  | 27,844 |  |  | 250,000 |  |  | 3.950 | %
|  |  |  |  |  |  |  | 300,000 |  |  | LIBOR + 1.450% |
2022 |  | 4,295 |  |  | — |  |  | 450,000 |  |  | 2.950 | %
2023 |  | 4,578 |  |  | — |  |  | 350,000 |  |  | 4.200 | %
|  |  |  |  |  |  |  | 250,000 |  |  | 2.850 | %
2024 |  | 4,888 |  |  | — |  |  | 300,000 |  |  | 3.500 | %
Thereafter |  | — |  |  | 1,059,299 |  |  | 525,000 |  |  | 3.450 | %
|  | $ | 80,923 |  |  | $ | 2,633,059 |  |  | $ | 3,575,000 |  |  |  |
The Company was in compliance at September 30, 2015 with 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 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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