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Debt | 9 Months Ended
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Sep. 30, 2019
Debt Disclosure [Abstract] |
Debt | Debt All of the Company’s indebtedness is debt of the Operating Partnership. AH4R is not directly obligated under any indebtedness, but guarantees some of the debt of the Operating Partnership. The following table presents the Company’s debt as of September 30, 2019 and December 31, 2018 (in thousands):
|  |  |  |  | Outstanding Principal Balance
| Interest Rate (1) |  | Maturity Date |  | September 30, 2019 |  | December 31, 2018
AH4R 2014-SFR2 securitization | 4.42% |  | October 9, 2024 |  | $ | 487,163 |  |  | $ | 491,195 |
AH4R 2014-SFR3 securitization | 4.40% |  | December 9, 2024 |  | 502,713 |  |  | 506,760 |
AH4R 2015-SFR1 securitization (2) | 4.14% |  | April 9, 2045 |  | 527,941 |  |  | 532,197 |
AH4R 2015-SFR2 securitization (3) | 4.36% |  | October 9, 2045 |  | 458,406 |  |  | 462,358 |
Total asset-backed securitizations |  |  |  |  | 1,976,223 |  |  | 1,992,510 |
2028 unsecured senior notes (4) | 4.08% |  | February 15, 2028 |  | 500,000 |  |  | 500,000 |
2029 unsecured senior notes | 4.90% |  | February 15, 2029 |  | 400,000 |  |  | — |
Revolving credit facility (5) | 3.22% |  | June 30, 2022 |  | — |  |  | 250,000 |
Term loan facility (6) | N/A |  | N/A |  | — |  |  | 100,000 |
Total debt |  |  |  |  | 2,876,223 |  |  | 2,842,510 |
Unamortized discounts on unsecured senior notes |  |  |  |  | (4,264 | ) |  | (2,546 | )
Deferred financing costs, net (7) |  |  |  |  | (34,844 | ) |  | (36,421 | )
Total debt per balance sheet |  |  |  |  | $ | 2,837,115 |  |  | $ | 2,803,543 |
(1) | Interest rates are as of September 30, 2019. Unless otherwise stated, interest rates are fixed percentages.
(2) | The AH4R 2015-SFR1 securitization has an anticipated repayment date of April 9, 2025.
(3) | The AH4R 2015-SFR2 securitization has an anticipated repayment date of October 9, 2025.
(4) | The stated interest rate on the 2028 unsecured senior notes is 4.25%, which was effectively hedged to yield an interest rate of 4.08%.
(5) | The revolving credit facility provides for a borrowing capacity of up to $800.0 million and the Company had approximately $4.8 million and $1.1 million committed to outstanding letters of credit that reduced our borrowing capacity as of September 30, 2019 and December 31, 2018, respectively. The revolving credit facility bears interest at the London Inter-Bank Offered Rate (“LIBOR”) rate plus 1.20% as of September 30, 2019. LIBOR is expected to be discontinued after 2021 and the Company expects to replace the contractual reference rate with an appropriate alternative. The Company does not expect this modification to have a material impact on its financial statements.
(6) | The term loan was fully repaid in June 2019.
(7) | Deferred financing costs relate to our asset-backed securitizations, term loan facility and unsecured senior notes. Amortization of deferred financing costs was $1.5 million for each of the three month periods ended September 30, 2019 and 2018 and $4.5 million and $4.4 million for the nine months ended September 30, 2019 and 2018, respectively, which was included in gross interest, prior to interest capitalization.
Debt Maturities The following table summarizes the contractual maturities of the Company’s debt on a fully extended basis as of September 30, 2019 (in thousands):
Remaining 2019 | $ | 5,179 |
2020 | 20,714 |
2021 | 20,714 |
2022 | 20,714 |
2023 | 20,714 |
Thereafter | 2,788,188 |
Total debt | $ | 2,876,223 |
Unsecured Senior Notes In January 2019, the Operating Partnership issued $400.0 million of 4.90% unsecured senior notes with a maturity date of February 15, 2029 (the “2029 Notes”). Interest on the 2029 Notes is payable semi-annually in arrears on February 15 and August 15 of each year, commencing on August 15, 2019. The Operating Partnership received net proceeds of $395.3 million from this issuance, after underwriting fees of approximately $2.6 million and a $2.1 million discount, and before offering costs of $1.0 million. The Operating Partnership used the net proceeds from this issuance to repay amounts outstanding on our revolving credit facility and for general corporate purposes. The 2029 Notes are the Operating Partnership’s unsecured and unsubordinated obligation and rank equally in right of payment with all of the Operating Partnership’s existing and future unsecured and unsubordinated indebtedness. The Operating Partnership may redeem the 2029 Notes at any time, in whole or in part, at the applicable redemption price specified in the indenture with respect to the 2029 Notes. If the 2029 Notes are redeemed on or after November 15, 2028 (three months prior to the maturity date), the redemption price will be equal to 100% of the principal amount of the 2029 Notes being redeemed plus accrued and unpaid interest thereon to, but not including, the redemption date. Interest Expense The following table displays our total gross interest, which includes fees on our credit facilities and amortization of deferred financing costs, the discounts on unsecured senior notes, and capitalized interest for the three and nine months ended September 30, 2019 and 2018 (in thousands):
| For the Three Months Ended |  | For the Nine Months Ended
| September 30, 2019 |  | September 30, 2018 |  | September 30, 2019 |  | September 30, 2018
Gross interest | $ | 34,213 |  |  | $ | 32,344 |  |  | $ | 104,046 |  |  | $ | 97,422 |
Capitalized interest | (2,748 | ) |  | (1,414 | ) |  | (8,095 | ) |  | (5,213 | )
Interest expense | $ | 31,465 |  |  | $ | 30,930 |  |  | $ | 95,951 |  |  | $ | 92,209 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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