XML 28 R17.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Debt | 6 Months Ended
--- | ---
Jun. 30, 2018
Debt Disclosure [Abstract] |
Debt | Debt Bank Line of Credit and Term Loan The Company’s $2.0 billion unsecured revolving line of credit facility (the “Facility”) matures on October 19, 2021 and contains two, six-month extension options. 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 June 30, 2018, the margin on the Facility was 1.00% 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 $750 million, subject to securing additional commitments. At June 30, 2018, the Company had $545 million, including £85 million ($112 million), outstanding under the Facility, with a weighted average effective interest rate of 3.09%. At June 30, 2018, the Company had £169 million ($223 million) outstanding on its term loan, which accrues interest at a rate of GBP LIBOR plus 1.15%, subject to adjustments based on the Company’s credit ratings. On July 3, 2018, the Company exercised its one-time right to repay the outstanding GBP balance and re-borrow in U.S. Dollars (“USD”) with all other key terms unchanged, which resulted in repayment of the £169 million balance and re-borrowing of $224 million. The term loan continues to mature in January 2019 and contains a one-year committed extension option. The Facility and 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%; (iv) require a minimum Fixed Charge Coverage ratio of 1.5 times; and (v) require a Minimum Consolidated Tangible Net Worth of $6.5 billion. At June 30, 2018, the Company was in compliance with each of these restrictions and requirements of the Facility and term loan. Senior Unsecured Notes At June 30, 2018, the Company had senior unsecured notes outstanding with an aggregate principal balance of $6.5 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 June 30, 2018. There were no senior unsecured notes repayments during the six months ended June 30, 2018. On July 16, 2018, the Company repaid $700 million of its 5.375% senior notes due 2021, primarily using proceeds from the U.K. JV transaction and other asset sales (see Note 4), and expects to record a loss on debt extinguishment of approximately $44 million in the third quarter of 2018. The following table summarizes the Company’s senior unsecured notes payoffs during the year ended December 31, 2017 (dollars in thousands):
Date |  | Amount |  | Coupon Rate
May 1, 2017 |  | $ | 250,000 |  |  | 5.625 | %
July 27, 2017 |  | $ | 500,000 |  |  | 5.375 | %
There were no senior unsecured notes issuances during the six months ended June 30, 2018 or year ended December 31, 2017. Mortgage Debt At June 30, 2018, the Company had $135 million in aggregate principal of mortgage debt outstanding, which is secured by 15 healthcare facilities (including redevelopment properties) with a carrying value of $284 million. In March 2017, the Company paid off $472 million of mortgage debt. 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 insurance on the assets and includes conditions to obtain lender consent to enter into or terminate material leases. Some of the mortgage debt 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 June 30, 2018 (in thousands):
Year |  | Bank Line of Credit(1) |  | Term Loan(2) |  | Senior Unsecured Notes(3) |  | Mortgage Debt(4) |  | Total(5)
2018 (six months) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,710 |  |  | $ | 1,710 |
2019 |  | — |  |  | 223,131 |  |  | 450,000 |  |  | 3,561 |  |  | 676,692 |
2020 |  | — |  |  | — |  |  | 800,000 |  |  | 3,609 |  |  | 803,609 |
2021 |  | 545,226 |  |  | — |  |  | 700,000 |  |  | 10,957 |  |  | 1,256,183 |
2022 |  | — |  |  | — |  |  | 900,000 |  |  | 2,691 |  |  | 902,691 |
Thereafter |  | — |  |  | — |  |  | 3,600,000 |  |  | 112,516 |  |  | 3,712,516 |
|  | 545,226 |  |  | 223,131 |  |  | 6,450,000 |  |  | 135,044 |  |  | 7,353,401 |
(Discounts), premium and debt costs, net |  | — |  |  | (208 | ) |  | (48,498 | ) |  | 5,277 |  |  | (43,429 | )
|  | $ | 545,226 |  |  | $ | 222,923 |  |  | $ | 6,401,502 |  |  | $ | 140,321 |  |  | $ | 7,309,972 |
_______________________________________
(1) | Includes £85 million translated into USD.
(2) | Represents £169 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 4.20% and a weighted average maturity of five years. On July 15, 2018, the Company repaid $700 million of its 5.375% senior unsecured notes due 2021 (see discussion above).
(4) | Interest rates on the mortgage debt ranged from 2.25% to 5.91% with a weighted average effective interest rate of 4.19% and a weighted average maturity of 19 years.
(5) | Excludes $93 million of other debt that have no scheduled maturities.

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration