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Debt | 3 Months Ended
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Mar. 31, 2017
Debt |
Debt | NOTE 10. 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 committed one-year extension option, at a cost of 30 basis points. Borrowings under the Facility accrue interest at LIBOR plus a margin that depends on 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 March 31, 2017, the margin on the Facility was 1.05% and the facility fee was 0.20%. 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. During the three months ended March 31, 2017, the Company repaid $440 million primarily using proceeds from the RIDEA II joint venture disposition (see Note 4). At March 31, 2017, the Company had £394 million ($492 million) outstanding under the Facility with a weighted average effective interest rate of 1.65%. On July 30, 2012, the Company entered into a credit agreement with a syndicate of banks for a £137 million unsecured term loan (the “2012 Term Loan”). In March 2017, the Company repaid the 2012 Term Loan primarily using proceeds from the sale of the Four Seasons investments (see Notes 6 and 9). On January 12, 2015, the Company entered into a credit agreement with a syndicate of banks for a £220 million ($275 million at March 31, 2017) four-year unsecured term loan (the “2015 Term Loan”) that accrues interest at a rate of GBP LIBOR plus 1.15%, subject to adjustments based on the Company’s credit ratings. The 2015 Term Loan matures on January 12, 2019 and contains a one-year committed extension option. Concurrently, the Company entered into a three-year interest rate swap contract that fixed the interest rate of the 2015 Term Loan (1.966% at March 31, 2017) (see Note 19). The Facility and 2015 Term Loan 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 Loan also require a Minimum Consolidated Tangible Net Worth of $6.5 billion at March 31, 2017. At March 31, 2017, the Company was in compliance with each of these restrictions and requirements of the Facility and Term Loan. Senior Unsecured Notes At March 31, 2017, the Company had senior unsecured notes outstanding with an aggregate principal balance of $7.2 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 March 31, 2017. The following table summarizes the Company’s senior unsecured notes payoffs for the year ended December 31, 2016 (dollars in thousands):
Date |  | Amount |  | Coupon Rate |
February 1, 2016 |  | $ | 500,000 |  |  | 3.750 | %
September 15, 2016 |  | $ | 400,000 |  |  | 6.300 | %
November 30, 2016 |  | $ | 500,000 |  |  | 6.000 | %
November 30, 2016 |  | $ | 600,000 |  |  | 6.700 | %
There were no senior unsecured note payoffs for the three months ended March 31, 2017. There were no senior unsecured notes issuances for the year ended December 31, 2016 and three months ended March 31, 2017. Mortgage Debt At March 31, 2017, the Company had $142 million in aggregate principal of mortgage debt outstanding, which is secured by 17 healthcare facilities (including redevelopment properties) with a carrying value of $311 million. In March 2017, the Company paid off $472 million of mortgage debt primarily using proceeds from the sale of 64 SH NNN facilities (see Note 4). Debt Maturities The following table summarizes the Company’s stated debt maturities and scheduled principal repayments at March 31, 2017 (in thousands):
|  |  |  |  |  |  |  | Senior |  |  |  |  |  |
|  | Bank Line of |  |  |  |  | Unsecured |  | Mortgage |  |  |
Year |  | Credit(1) |  | Term Loan(2) |  | Notes(3) |  | Debt(4) |  | Total(5)
2017 (nine months) |  | $ | — |  | $ | — |  | $ | 250,000 |  | $ | 2,604 |  | $ | 252,604
2018 |  |  | 492,421 |  |  | — |  |  | — |  |  | 3,641 |  |  | 496,062
2019 |  |  | — |  |  | 274,956 |  |  | 450,000 |  |  | 3,839 |  |  | 728,795
2020 |  |  | — |  |  | — |  |  | 800,000 |  |  | 3,907 |  |  | 803,907
2021 |  |  | — |  |  | — |  |  | 1,200,000 |  |  | 11,277 |  |  | 1,211,277
Thereafter |  |  | — |  |  | — |  |  | 4,500,000 |  |  | 116,481 |  |  | 4,616,481
|  |  | 492,421 |  |  | 274,956 |  |  | 7,200,000 |  |  | 141,749 |  |  | 8,109,126
(Discounts), premiums and debt costs, net |  |  | — |  |  | (853) |  |  | (63,664) |  |  | 5,580 |  |  | (58,937)
|  | $ | 492,421 |  | $ | 274,103 |  | $ | 7,136,336 |  | $ | 147,329 |  | $ | 8,050,189
| (1) |  | Represents £394 million translated into U.S. dollar (“USD”).
| (2) |  | Represents £220 million translated into USD.
| (3) |  | Effective interest rates on the notes ranged from 2.79% to 6.88% with a weighted average effective interest rate of 4.34% and a weighted average maturity of six years.
| (4) |  | Interest rates on the mortgage debt ranged from 2.99% to 7.51% with a weighted average effective interest rate of 4.24% and a weighted average maturity of 20 years.
| (5) |  | Excludes $91 million of other debt that have no scheduled maturities.
Subsequent Event In April 2017, the Company repaid an additional £105 million of the Facility. On May 1, 2017, the Company repaid $250 million of maturing senior 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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