Borrowings

The following table summarizes the Company's outstanding debt as of September 30, 2018 (dollars in thousands):



	Borrowed Balance			Effective Rate		Contract Maturity⁽²⁾
Unsecured debt
Variable rate revolving credit facility	$	370,000		3.1	%	4/15/2020
Fixed rate senior notes	2,642,000			4.0	%	7/12/2025
Term loans fixed with swaps	300,000			2.3	%	3/1/2022
Variable rate term loans	300,000			3.1	%	8/29/2020
Fair market value adjustments, debt issuance costs and discounts	(29,376		)
Total unsecured debt	$	3,582,624		3.7	%
Fixed rate secured debt
Individual property mortgages	$	836,513		4.0	%	11/1/2019
Variable rate secured debt ⁽¹⁾
Fannie Mae Facility	80,000			2.7	%	12/1/2018
Fair market value adjustments and debt issuance costs	4,886
Total secured debt	$	921,399		3.9	%
Total outstanding debt	$	4,504,023		3.7	%

⁽¹⁾ Includes capped balances.

⁽²⁾ Represents the weighted average contract maturity date.

Unsecured Revolving Credit Facility

MAALP maintains a $1.0 billion unsecured credit facility with a syndicate of banks led by KeyBank National Association, or the KeyBank Facility. The KeyBank Facility includes an expansion option up to $1.5 billion. The KeyBank Facility bears an interest rate of the one month London Interbank Offered Rate, or LIBOR, plus a spread of 0.85% to 1.55% based on an investment grade pricing grid and, as of September 30, 2018, bears interest at 3.06%. The KeyBank Facility expires in April 2020 with an option to extend for an additional six months. At September 30, 2018, MAALP had $370.0 million outstanding under the KeyBank Facility with another approximately $1.9 million of additional capacity used to support outstanding letters of credit.

Senior Unsecured Notes

As of September 30, 2018, MAALP had approximately $2.4 billion in principal amount of publicly issued senior unsecured notes and $242.0 million of privately placed senior unsecured notes. These senior unsecured notes had maturities at issuance ranging from seven to twelve years, averaging 6.8 years remaining until maturity as of September 30, 2018.

On May 14, 2018 MAALP publicly issued $400.0 million in aggregate principal amount of notes, maturing on June 15, 2028 with an interest rate of 4.20% per annum, or the 2028 Notes. The purchase price paid by the initial purchasers was 99.403% of the principal amount. The 2028 Notes are general unsecured senior obligations of MAALP and rank equally in right of payment with all other senior unsecured indebtedness of MAALP. Interest on the 2028 Notes is payable on June 15 and December 15 of each year, beginning on December 15, 2018. The net proceeds from the offering, after deducting the original issue discount of approximately $2.4 million and underwriting commissions and expenses of approximately $2.6 million, were approximately $395.0 million. The 2028 Notes have been reflected net of discount and debt issuance costs in the Condensed Consolidated Balance Sheet as of September 30, 2018. In connection with the issuance of the 2028 Notes, MAALP cash settled $200.0 million in forward interest rate swap agreements, entered into earlier in the year to effectively lock the interest rate on the planned transaction, which produced an effective interest rate of 4.21% over the ten year life of the 2028 Notes.

In July 2018, the Company retired a $50.0 million tranche of senior unsecured private placement notes at maturity.

Unsecured Term Loans

The Company maintains three term loans, each with a syndicate of banks, one led by U.S. Bank National Association, or U.S. Bank, one led by KeyBank National Association, or KeyBank, and one led by Wells Fargo Bank, N.A., or Wells Fargo, respectively. The U.S. Bank term loan has a balance of $150.0 million, matures in 2020, and has a variable interest rate of LIBOR plus a spread of 0.90% to 1.90% based on the Company's credit ratings. The KeyBank term loan has a balance of $150.0 million, matures in 2021, and has a variable interest rate of LIBOR plus a spread of 0.90% to 1.75% based on the Company's credit ratings. The Wells Fargo term loan has a balance of $300.0 million, matures in 2022 and has a variable interest rate of LIBOR plus a spread of 0.90% to 1.75% based on the Company's credit ratings.

In August 2018, the Company retired a $250.0 million unsecured term loan with Wells Fargo at maturity.

Secured Property Mortgages

As of September 30, 2018, the Company had $836.5 million of fixed rate conventional property mortgages with an average interest rate of 4.0% and an average maturity in 2019.

In February 2018, the Company retired a $38.3 million mortgage associated with Highlands of West Village. The mortgage was scheduled to mature in May 2018. In addition to the debt retirement, the Company paid $7.9 million associated with property mortgage principal amortizations during the nine months ended September 30, 2018.

Secured Credit Facility

The Company maintains an $80.0 million secured credit facility with Prudential Mortgage Capital, which is credit enhanced by the Federal National Mortgage Association, or the Fannie Mae Facility. The Fannie Mae Facility matures on December 3, 2018. Borrowings under the Fannie Mae Facility totaled $80.0 million at September 30, 2018, all of which were variable rate borrowings at an average interest rate of 2.7%.

Guarantees

As of September 30, 2018, MAA fully and unconditionally guarantees the following debt incurred by MAALP:


•	$80.0 million of the Fannie Mae Facility, all of which was borrowed as of September 30, 2018; and


•	$242.0 million of the privately placed senior unsecured notes.