Debt

6 Months Ended

Jun. 30, 2022

The following table summarizes the components of the Company’s indebtedness as of June 30, 2022 and December 31, 2021 (dollars in thousands). The Company has no secured debt:


	June 30, 2022		December 31, 2021		Margin Above SOFR	Interest Rate 1		Contractual Maturity Date

Unsecured Debt:
Unsecured Debt:
Credit Facility	$	12,000	$	—	1.1% 2	2.3	%	8/20/2025
5-Year Term Loan	100,000		100,000		1.3% 2	2.8	%	1/1/2027
$50M 7-Year Unsecured 3	50,000		50,000 4		n/a	4.2	%	9/1/2022
$100M 7-Year Unsecured 3	100,000		100,000		n/a	3.8	%	7/14/2024
$50M 10-Year Unsecured 3	50,000		50,000		n/a	4.0	%	7/7/2026
$50M 12-Year Unsecured 3	50,000		50,000		n/a	4.7	%	10/31/2027
$100M 7-Year Unsecured 3	100,000		100,000		n/a	2.4	%	7/15/2028
$100M 10-Year Unsecured 3	100,000		100,000		n/a	3.1	%	12/3/2029
$125M 9-Year Unsecured 3	125,000		125,000		n/a	2.4	%	8/17/2030
$50M 10-Year Unsecured 3	50,000		50,000		n/a	2.8	%	7/15/2031
Total Unsecured Debt	737,000		725,000




Total Unsecured Debt	737,000		725,000
Less: Unamortized premium/discount and debt issuance costs	(3,941)		(4,330)
Total	$	733,059	$	720,670

1Reflects the contractual interest rate under the terms of each loan as of June 30, 2022. Excludes the effects of unamortized debt issuance costs and unamortized fair market value premiums, if any.

2The interest rates on these loans are comprised of the Secured Overnight Financing Rate (“SOFR”) plus a SOFR margin. The SOFR margins will range from 1.10% to 1.55% (1.10% as of June 30, 2022) for the revolving credit facility and 1.25% to 1.75% (1.25% as of June 30, 2022) for the $100.0 million term loan, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value and includes a 10 basis points SOFR credit adjustment.

3Collectively, the “Senior Unsecured Notes”.

4On August 1, 2022, the Company prepaid a $50.0 million tranche of the Senior Unsecured Notes using borrowings from the Company’s revolving credit facility. The notes bore interest at 4.23% and had an original maturity date of September 1, 2022.

On June 29, 2022, the Company entered into the First Amendment to the Sixth Amended and Restated Senior Credit Agreement (as amended, the “Amended Facility”) which (i) increased the borrowing capacity of the revolving credit facility by $150.0 million to $400.0 million, (ii) decreased the accordion feature by $150.0 million to $500.0 million, and (iii) provided for the calculation of interest, pricing and fees based on SOFR instead of LIBOR. The Amended Facility consists of a $400.0 million revolving credit facility that matures in August 2025 and a $100.0 million term loan that matures in January 2027. As of June 30, 2022 and December 31, 2021, there were $12.0 million and $0, respectively, of borrowings outstanding on the revolving credit facility and $100.0 million of borrowings outstanding on the term loan.

The aggregate amount of the Amended Facility may be increased up to $500.0 million, subject to the approval of the administrative agent and the identification of lenders willing to make available additional amounts. Outstanding borrowings under the Amended Facility are limited to the lesser of (i) the sum of the $100.0 million term loan and the $400.0 million revolving credit facility, or (ii) 60.0% of the value of the unencumbered properties. Interest on the Amended Facility, including the term loan, is generally to be paid based upon, at the Company’s option, either (i) SOFR plus the applicable SOFR margin or (ii) the applicable base rate, which is the greatest of the administrative agent’s prime rate, 0.50% above the federal funds effective rate, or thirty-day SOFR plus the applicable SOFR margin for SOFR rate loans under the Amended Facility plus 1.25%. The applicable SOFR margin will range from 1.10% to 1.55% (1.10% as of June 30, 2022) for the revolving credit facility and 1.25% to 1.75% (1.25% as of June 30, 2022) for the $100.0 million term loan, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value and includes a 10 basis points SOFR credit adjustment. The Amended Facility requires quarterly payments of an annual facility fee in an amount ranging from 0.15% to 0.30%, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value.

The Amended Facility and the Senior Unsecured Notes are guaranteed by the Company and by substantially all of the current and to-be-formed subsidiaries of the Company that own an unencumbered property. The Amended Facility and the Senior Unsecured Notes are not secured by the Company’s properties or by interests in the subsidiaries that hold such properties. The Amended Facility and the Senior Unsecured Notes include a series of financial and other covenants with which the Company must comply. The Company was in compliance with the covenants under the Amended Facility and the Senior Unsecured Notes as of June 30, 2022 and December 31, 2021.

The scheduled principal payments of the Company’s debt as of June 30, 2022 were as follows (dollars in thousands):


	Credit Facility			Term Loan			Senior Unsecured Notes				Total Debt
2022 (6 months)	$	—		$	—		$	50,000		1	$	50,000
2023	—			—			—				—
2024	—			—			100,000				100,000
2025	12,000			—			—				12,000
2026	—			—			50,000				50,000
Thereafter	—			100,000			425,000				525,000
Total debt	12,000			100,000			625,000				737,000
Deferred financing costs, net	—			(455)			(3,486)				(3,941)
Total debt, net	$	12,000		$	99,545		$	621,514			$	733,059
Weighted average interest rate	2.3		%	2.8		%	3.2		%		3.1		%

1On August 1, 2022, the Company prepaid a $50.0 million tranche of the Senior Unsecured Notes using borrowings from the Company’s revolving credit facility. The notes bore interest at 4.23% and had an original maturity date of September 1, 2022.