XML 36 R19.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Debt | 12 Months Ended
--- | ---
Dec. 31, 2015
Debt |
Debt | NOTE 11. Debt Bank Line of Credit and Term Loans The Company’s $2.0 billion unsecured revolving line of credit facility (the “Facility”) matures on March 31, 2018 and contains a one-year extension option. Borrowings under the Facility accrue interest at LIBOR plus a margin that depends upon the Company’s credit ratings. The Company pays a facility fee on the entire revolving commitment that depends on its credit ratings. Based on the Company’s credit ratings at December 31, 2015, the margin on the Facility was 0.925%, and the facility fee was 0.15%. The Facility also includes a feature that allows the Company to increase the borrowing capacity by an aggregate amount of up to $500 million, subject to securing additional commitments from existing lenders or new lending institutions. At December 31, 2015, the Company had £270 million ($397 million), outstanding under the Facility with a weighted average effective interest rate of 1.72%. On July 30, 2012, the Company entered into a credit agreement with a syndicate of banks for a £137 millio n ($202 million at December 31, 2015) four-year unsecured term loan (the “2012 Term Loan”). Based on the Company’s credit ratings at December 31, 2015, the 2012 Term Loan accrues interest at a rate of GBP LIBOR plus 1.20%. Concurrent with the closing of the 2012 Term Loan, the Company entered into a four-year interest rate swap contract that fixes the interest rate of the 2012 Term Loan at 1.81%, subject to adjustments based on the Company’s credit ratings. The 2012 Term Loan contains a one-year committed extension option. On January 12, 2015, the Company entered into a credit agreement with a syndicate of banks for a £220 million ($323 million at December 31, 2015) four-year unsecured term loan (the “2015 Term Loan”) that accrues interest at a rate of GBP LIBOR plus 0.975%, subject to adjustments based on the Company’s credit ratings (the 2012 and 2015 Term Loans are collectively, the “Term Loans”). Concurrently, the Company entered into a three-year interest rate swap contract that fixes the rate of the 2015 Term Loan at 1.79% (see Note 2 4). Proceeds from the 2015 Term Loan were used to repay £220 million that partially funded the November 2014 HC-One Facility (see Note 7). The 2015 Term Loan contains a one-year committed extension option. The Facility and Term Loans contain certain financial restrictions and other customary requirements, including cross-default provisions to other indebtedness. Among other things, these covenants, using terms defined in the agreements, (i) limit the ratio of Consolidated Total Indebtedness to Consolidated Total Asset Value to 60%, (ii) limit the ratio of Secured Debt to Consolidated Total Asset Value to 30%, (iii) limit the ratio of Unsecured Debt to Consolidated Unencumbered Asset Value to 60% and (iv) require a minimum Fixed Charge Coverage ratio of 1.5 times. The Facility and Term Loans also require a Minimum Consolidated Tangible Net Worth of $9.5 billion at December 31, 2015. At December 31, 2015, the Company was in compliance with each of these restrictions and requirements. Senior Unsecured Notes At December 31, 2015, the Company had senior unsecured notes outstanding with an aggregate principal balance of $9.2 billion. The senior unsecured notes contain certain covenants including limitations on debt, maintenance of unencumbered assets, cross-acceleration provisions and other customary terms. The Company believes it was in compliance with these covenants at December 31, 2015. The following table summarizes the Company’s senior unsecured note issuances for the periods presented (dollars in thousands):
|  | Issuance |  |  |  |  |  |  |  |
Period |  | Amount |  | Coupon Rate |  | Maturity Date |  | Net Proceeds |
Year ended December 31, 2015: |  |  |  |  |  |  |  |  |  |  |  |  |
January 21, 2015 |  | $ | 600,000 |  |  | 3.400 | % |  | 2025 |  | $ | 591,000 |
May 20, 2015 |  | $ | 750,000 |  |  | 4.000 | % |  | 2025 |  | $ | 739,000 |
December 1, 2015 |  | $ | 600,000 |  |  | 4.000 | % |  | 2022 |  | $ | 594,000 |
Year ended December 31, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |
February 21, 2014 |  | $ | 350,000 |  |  | 4.200 | % |  | 2024 |  | $ | 346,000 |
August 14, 2014 |  | $ | 800,000 |  |  | 3.875 | % |  | 2024 |  | $ | 792,000 |
The following table summarizes the Company’s senior unsecured notes payoffs for the periods presented (dollars in thousands):
Period |  | Amount |  | Coupon Rate |
Year ended December 31, 2015: |  |  |  |  |  |  |
March 1, 2015 |  | $ | 200,000 |  |  | 6.000 | %
June 8, 2015 |  | $ | 200,000 |  |  | 7.072 | %
Year ended December 31, 2014: |  |  |  |  |  |  |
February 1, 2014 |  | $ | 400,000 |  |  | 2.700 | %
June 14, 2014 |  | $ | 62,000 |  |  | 6.000 | %
June 14, 2014 |  | $ | 25,000 |  |  | 3 Month LIBOR+0.9 | %
Mortgage Debt At December 31, 2015, the Company had $933 m illion in aggregate principal amount of mortgage debt outstanding, which is secured by 62 healthcare facilities (including redevelopment properties) with a carrying value of $1.2 billion. Mortgage debt generally requires monthly principal and interest payments, is collateralized by real estate assets and is generally non-recourse. Mortgage debt typically restricts transfer of the encumbered assets, prohibits additional liens, restricts prepayment, requires payment of real estate taxes, requires maintenance of the assets in good condition, requires maintenance of insurance on the assets and includes conditions to obtain lender consent to enter into or terminate material leases. Some of the mortgage debt is also cross-collateralized by multiple assets and may require tenants or operators to maintain compliance with the applicable leases or operating agreements of such real estate assets. Debt Maturities The following table summarizes the Company’s stated debt maturities and scheduled principal repayments at December 31, 2015 (dollars in thousands):
|  |  |  |  |  |  |  | Senior Unsecured Notes(3) |  |  | Mortgage Debt(4) |  |  |  |
|  | Line of |  |  |  |  |  |  | Interest |  |  |  |  | Interest |  |  |  |
Year |  | Credit(1) |  | Term Loans(2) |  | Amount |  | Rate |  |  | Amount |  | Rate |  | Total(5) |
2016 |  | $ | — |  | $ | 202,034 |  | $ | 900,000 |  | 5.09 | % |  | $ | 279,194 |  | 6.84 | % | $ | 1,381,228 |
2017 |  |  | — |  |  | — |  |  | 750,000 |  | 6.02 | % |  |  | 581,891 |  | 6.08 | % |  | 1,331,891 |
2018 |  |  | 397,432 |  |  | — |  |  | 600,000 |  | 6.81 | % |  |  | 6,583 |  | 5.90 | % |  | 1,004,015 |
2019 |  |  | — |  |  | 324,434 |  |  | 450,000 |  | 3.97 | % |  |  | 2,072 |  | N/A |  |  | 776,506 |
2020 |  |  | — |  |  | — |  |  | 800,000 |  | 2.79 | % |  |  | 2,078 |  | 5.14 | % |  | 802,078 |
Thereafter |  |  | — |  |  | — |  |  | 5,700,000 |  | 4.54 | % |  |  | 61,092 |  | 4.98 | % |  | 5,761,092 |
|  |  | 397,432 |  |  | 526,468 |  |  | 9,200,000 |  | 4.68 | % |  |  | 932,910 |  | 6.21 | % |  | 11,056,810 |
Discounts and debt costs, net |  |  | — |  |  | (1,661) |  |  | (79,893) |  |  |  |  |  | (698) |  |  |  |  | (82,252) |
|  | $ | 397,432 |  | $ | 524,807 |  | $ | 9,120,107 |  |  |  |  | $ | 932,212 |  |  |  | $ | 10,974,558 |
| (1) |  | Represents £270 million translated into U.S. dollars (“USD”).
| (2) |  | Represents £357 million translated into USD.
| (3) |  | Interest rates on the notes ranged from 2.79% to 6.88% with a weighted average effective rate of 4.68% and a weighted average maturity of six years.
| (4) |  | Interest rates on the mortgage debt ranged from 3.14% to 8.35% with a weighted average effective interest rate of 6.21% and a weighted average maturity of two years.
| (5) |  | Excludes $9 4 million of other debt that represents Life Care Bonds and Demand Notes that have no scheduled maturities.
Other Debt At December 31, 2015, the Company had $66 million of non-interest bearing life care bonds at two of its continuing care retirement communities and non-interest bearing occupancy fee deposits at two of its senior housing facilities, all of which were payable to certain residents of the facilities (collectively, “Life Care Bonds”). The Life Care Bonds are generally refundable to the residents upon the termination of the contract or upon the successful resale of the unit. At December 31, 2015, the Company had $28 million of on-demand notes (“Demand Notes”) from the CCRC JV. The Demand Notes bear interest at a rate of 4.5%.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration