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Debt | 9 Months Ended
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Sep. 30, 2020
Debt Disclosure [Abstract] |
Debt | Debt Bank Line of Credit and Term Loans On May 23, 2019, the Company executed a $2.5 billion unsecured revolving line of credit facility (the “Revolving Facility”), which matures on May 23, 2023 and contains two six month extension options, subject to certain customary conditions. Borrowings under the Revolving Facility accrue interest at LIBOR plus a margin that depends on credit ratings of the Company’s senior unsecured long-term debt. The Company pays a facility fee on the entire revolving commitment that depends on its credit ratings. Based on those credit ratings at September 30, 2020, the margin on the Revolving Facility was 0.83% and the facility fee was 0.15%. At September 30, 2020, the Company had no balance outstanding under the Revolving Facility. In May 2019, the Company also entered into a $250 million unsecured term loan facility, which the Company fully drew down on June 20, 2019 (the “2019 Term Loan” and, together with the Revolving Facility, the “Facilities”). The 2019 Term Loan matures on May 23, 2024. Based on credit ratings for the Company’s senior unsecured long-term debt at September 30, 2020, the 2019 Term Loan accrues interest at a rate of LIBOR plus 0.90%, with a weighted average effective interest rate of 1.14%. The Facilities include 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. The Facilities also 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 Enterprise Total Indebtedness to Enterprise Gross Asset Value to 60%; (ii) limit the ratio of Enterprise Secured Debt to Enterprise Gross Asset Value to 40%; (iii) limit the ratio of Enterprise Unsecured Debt to Enterprise 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 $7.0 billion. At September 30, 2020, the Company believes it was in compliance with each of these restrictions and requirements of the Facilities. Commercial Paper Program In September 2019, the Company established an unsecured commercial paper program (the “Commercial Paper Program”). Under the terms of the Commercial Paper Program, the Company may issue, from time to time, unsecured short-term debt securities with varying maturities. Amounts available under the Commercial Paper Program may be borrowed, repaid, and re-borrowed from time to time, with the maximum aggregate face or principal amount outstanding at any one time not exceeding $1.0 billion. Amounts borrowed under the Commercial Paper Program will be sold on terms that are customary for the U.S. commercial paper market and will be at least equal in right of payment with all of the Company’s other unsecured and unsubordinated indebtedness. The Company intends to use its Revolving Facility as a liquidity backstop for the repayment of unsecured short-term debt securities issued under the Commercial Paper Program. At September 30, 2020, the Company had no balance outstanding under the Commercial Paper Program. Senior Unsecured Notes At September 30, 2020, the Company had senior unsecured notes outstanding with an aggregate principal balance of $5.75 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 September 30, 2020. The following table summarizes the Company’s senior unsecured notes issuances during the nine months ended September 30, 2020 (dollars in thousands):
Issue Date |  | Amount |  | Coupon Rate |  | Maturity Date
June 23, 2020 |  | $ | 600,000 |  |  | 2.88 | % |  | 2031
The following table summarizes the Company’s senior unsecured notes payoffs and repurchases during the nine months ended September 30, 2020 (dollars in thousands):
Payoff Date |  | Amount |  | Coupon Rate |  | Maturity Date
July 9, 2020(1) |  | $ | 300,000 |  |  | 3.15 | % |  | 2022
June 24, 2020(2) |  | $ | 250,000 |  |  | 4.25 | % |  | 2023
_______________________________________ (1)Upon completing the redemption of the 3.15% senior unsecured notes due in 2022, the Company recognized an $18 million loss on debt extinguishment. (2)Upon repurchasing a portion of the 4.25% senior unsecured notes due in 2023, the Company recognized a $26 million loss on debt extinguishment. The following table summarizes the Company’s senior unsecured notes issuances during the year ended December 31, 2019 (dollars in thousands):
Issue Date |  | Amount |  | Coupon Rate |  | Maturity Date
November 21, 2019 |  | $ | 750,000 |  |  | 3.00 | % |  | 2030
July 5, 2019 |  | $ | 650,000 |  |  | 3.25 | % |  | 2026
July 5, 2019 |  | $ | 650,000 |  |  | 3.50 | % |  | 2029
The following table summarizes the Company’s senior unsecured notes payoffs and repurchases during the year ended December 31, 2019 (dollars in thousands):
Payoff Date |  | Amount |  | Coupon Rate |  | Maturity Date
November 21, 2019(1) |  | $ | 350,000 |  |  | 4.00 | % |  | 2022
July 22, 2019(2) |  | $ | 800,000 |  |  | 2.63 | % |  | 2020
July 8, 2019(2) |  | $ | 250,000 |  |  | 4.00 | % |  | 2022
July 8, 2019(2) |  | $ | 250,000 |  |  | 4.25 | % |  | 2023
_______________________________________ (1)Upon repurchasing the 4.00% senior unsecured notes due in 2022, the Company recognized a $22 million loss on debt extinguishment. (2)Upon completing the redemption of the 2.63% senior unsecured notes due in 2020 and repurchasing a portion of the 4.25% senior unsecured notes due in 2023 and the 4.00% senior unsecured notes due in 2022, the Company recognized a $35 million loss on debt extinguishment. Mortgage Debt At September 30, 2020, the Company had $421 million in aggregate principal of mortgage debt outstanding (excluding mortgage debt on assets held for sale), which is secured by 14 healthcare facilities with an aggregate carrying value of $856 million. During the three and nine months ended September 30, 2020, the Company made aggregate principal repayments of mortgage debt of $2 million and $10 million, respectively. During the three and nine months ended September 30, 2019, the Company made aggregate principal repayments of mortgage debt of $1 million and $3 million, respectively. 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. In May 2019, upon acquiring three senior housing assets from Oakmont, the Company assumed $50 million of secured mortgage debt maturing in 2028 and having a weighted average interest rate of 4.83%. In July 2019, upon acquiring five additional senior housing assets from Oakmont, the Company assumed an additional $112 million of secured mortgage debt with maturity dates ranging from 2027 to 2033 and a weighted average interest rate of 4.89% (see Note 4). Debt Maturities The following table summarizes the Company’s stated debt maturities and scheduled principal repayments at September 30, 2020 (in thousands):
Year |  | Bank Line of Credit |  | Commercial Paper |  | Term Loan |  | Senior Unsecured Notes(1) |  | Mortgage Debt(2) |  | Total
2020 (three months) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,884 |  |  | $ | 1,884 |
2021 |  | — |  |  | — |  |  | — |  |  | — |  |  | 15,004 |  |  | 15,004 |
2022 |  | — |  |  | — |  |  | — |  |  | — |  |  | 7,215 |  |  | 7,215 |
2023 |  | — |  |  | — |  |  | — |  |  | 300,000 |  |  | 92,365 |  |  | 392,365 |
2024 |  | — |  |  | — |  |  | 250,000 |  |  | 1,150,000 |  |  | 5,652 |  |  | 1,405,652 |
Thereafter |  | — |  |  | — |  |  | — |  |  | 4,300,000 |  |  | 298,672 |  |  | 4,598,672 |
|  | — |  |  | — |  |  | 250,000 |  |  | 5,750,000 |  |  | 420,792 |  |  | 6,420,792 |
(Discounts), premium and debt costs, net |  | — |  |  | — |  |  | (878) |  |  | (54,433) |  |  | 14,414 |  |  | (40,897) |
|  | — |  |  | — |  |  | 249,122 |  |  | 5,695,567 |  |  | 435,206 |  |  | 6,379,895 |
Debt on assets held for sale(3) |  | — |  |  | — |  |  | — |  |  | — |  |  | 77,222 |  |  | 77,222 |
|  | $ | — |  |  | $ | — |  |  | $ | 249,122 |  |  | $ | 5,695,567 |  |  | $ | 512,428 |  |  | $ | 6,457,117 |
_______________________________________ (1)Effective interest rates on the senior notes range from 3.08% to 6.87% with a weighted average effective interest rate of 3.86% and a weighted average maturity of 7 years. (2)Excluding mortgage debt on assets held for sale, effective interest rates on the mortgage debt range from 1.23% to 5.91% with a weighted average effective interest rate of 3.62% and a weighted average maturity of 7 years. (3)Represents mortgage debt on assets held for sale with interest rates of 1.23% and 3.45% that mature in 2027 and 2044, respectively.

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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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