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Notes Payable | 3 Months Ended
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Mar. 31, 2021
Debt Disclosure [Abstract] |
NOTES PAYABLE | NOTES PAYABLE The following table summarizes the terms of notes payable outstanding at March 31, 2021 and December 31, 2020 ($ in thousands):
Description |  | Interest Rate (1) |  | Maturity (2) |  | 2021 |  | 2020
Unsecured Notes: |  |  |  |  |  |  |  |
Credit Facility, Unsecured |  | 1.16% |  | 2023 |  | $ | 289,000 |  |  | $ | 232,400 |
Term Loan, Unsecured |  | 1.31% |  | 2021 |  | 250,000 |  |  | 250,000 |
2019 Senior Notes, Unsecured |  | 3.95% |  | 2029 |  | 275,000 |  |  | 275,000 |
2017 Senior Notes, Unsecured |  | 3.91% |  | 2025 |  | 250,000 |  |  | 250,000 |
2019 Senior Notes, Unsecured |  | 3.86% |  | 2028 |  | 250,000 |  |  | 250,000 |
2019 Senior Notes, Unsecured |  | 3.78% |  | 2027 |  | 125,000 |  |  | 125,000 |
2017 Senior Notes, Unsecured |  | 4.09% |  | 2027 |  | 100,000 |  |  | 100,000 |
|  |  |  |  |  | 1,539,000 |  |  | 1,482,400 |
Secured Mortgage Notes: |  |  |  |  |  |  |  |
Fifth Third Center |  | 3.37% |  | 2026 |  | 136,222 |  |  | 137,057 |
Terminus 100 |  | 5.25% |  | 2023 |  | 114,183 |  |  | 114,997 |
Colorado Tower |  | 3.45% |  | 2026 |  | 114,040 |  |  | 114,660 |
Promenade |  | 4.27% |  | 2022 |  | 91,722 |  |  | 92,593 |
816 Congress |  | 3.75% |  | 2024 |  | 77,784 |  |  | 78,232 |
Terminus 200 |  | 3.79% |  | 2023 |  | 73,912 |  |  | 74,354 |
Legacy Union One |  | 4.24% |  | 2023 |  | 66,000 |  |  | 66,000 |
|  |  |  |  |  | 673,863 |  |  | 677,893 |
|  |  |  |  |  | $ | 2,212,863 |  |  | $ | 2,160,293 |
Unamortized premium |  |  |  |  |  | 6,658 |  |  | 7,574 |
Unamortized loan costs |  |  |  |  |  | (4,829) |  |  | (5,148) |
Total Notes Payable |  |  |  |  |  | $ | 2,214,692 |  |  | $ | 2,162,719 |
(1) Interest rate as of March 31, 2021. (2) Weighted average maturity of notes payable outstanding at March 31, 2021 was 4.3 years. Credit Facility The Company has a $1 billion senior unsecured line of credit (the "Credit Facility") that matures on January 3, 2023. The Credit Facility contains financial covenants that require, among other things, the maintenance of an unencumbered interest coverage ratio of at least 1.75x; a fixed charge coverage ratio of at least 1.50x; a secured leverage ratio of no more than 40%; and an overall leverage ratio of no more than 60%. The Credit Facility also contains customary representations and warranties and affirmative and negative covenants, as well as customary events of default. The amounts outstanding under the Credit Facility may be accelerated upon the occurrence of any events of default. The Company is in compliance with all covenants of the Credit Facility. The interest rate applicable to the Credit Facility varies according to the Company's leverage ratio, and may, at the election of the Company, be determined based on either (1) the current LIBOR plus a spread of between 1.05% and 1.45%, or (2) the greater of Bank of America's prime rate, the federal funds rate plus 0.50%, or the one-month LIBOR plus 1.0% (the "Base Rate"), plus a spread of between 0.10% or 0.45%, based on leverage. At March 31, 2021, the Credit Facility's spread over LIBOR was 1.05%. The amount th at the Company may draw under the Credit Facility is a defined calculation based on the Company's unencumbered assets and other factors. The total available borrowing capacity under the Credit Fac ility was $711.0 million at March 31, 2021. Term Loan The Company has a $250 million unsecured term loan (the "Term Loan") that matures on December 2, 2021. The Term Loan has financial covenants consistent with those of the Credit Facility. The interest rate applicable to the Term Loan varies according to the Company’s leverage ratio and may, at the election of the Company, be determined based on either (1) the current LIBOR plus a spread of between 1.20% and 1.70%, based on leverage or (2) the greater of Bank of America's prime rate, the federal funds rate plus 0.50%, or the one-month LIBOR plus 1.00% (the “Base Rate”), plus a spread of between 0.00% and 0.75%, based on leverage. At March 31, 2021, the Term Loan's spread over LIBOR was 1.20%. The Company is in compliance with all covenants of the Term Loan. Unsecured Senior Notes The Company has unsecured senior notes of $1.0 billion that were funded in five tranches. The first tranche of $100 million is due in 2027 and has a fixed annual interest rate of 4.09%. The second tranche of $250 million is due in 2025 and has a fixed annual interest rate of 3.91%. The third tranche of $125 million is due in 2027 and has a fixed annual interest rate of 3.78%. The fourth tranche of $250 million is due in 2028 and has a fixed annual interest rate of 3.86%. The fifth tranche of $275 million is due in 2029 and has a fixed annual interest rate of 3.95%. The unsecured senior notes contain financial covenants that require, among other things, the maintenance of an unencumbered interest coverage ratio of at least 1.75x; a fixed charge coverage ratio of at least 1.50x; a secured leverage ratio of no more than 40%; and an overall leverage ratio of no more than 60%. The senior notes also contain customary representations and warranties and affirmative and negative covenants, as well as customary events of default. The amounts outstanding under the senior notes may be accelerated upon the occurrence of any events of default. The Company is in compliance with all covenants of the unsecured senior notes. Secured Mortgage Notes On February 3, 2020, the Company prepaid in full, without penalty, the $23 million Meridian Mark Plaza mortgage note. As of March 31, 2021, the Company had $673.9 million outstanding on seven non-recourse mortgage notes. All interest rates on the secured mortgage notes are fixed. Assets with depreciated carrying values of $1.1 billion were pledged as security on these mortgage notes payable. Other Debt Information At March 31, 2021 and December 31, 2020, the estimated fair value of the Company’s notes payable w as $2.3 billion calculated by discounting the debt's remaining contractual cash flows at estimated rates at which similar loans could have been obtained at March 31, 2021 and December 31, 2020. The estimate of the current market rate, which is the most significant input in the discounted cash flow calculation, is intended to replicate debt of similar maturity and loan-to-value relationship. These fair value calculations are considered to be Level 2 under the guidelines as set forth in ASC 820 as the Company utilizes market rates for similar type loans from third party brokers. For the three months ended March 31, 2021 and 2020, interest expense was recorded as follows (in thousands):
| 2021 |  | 2020 |  |  |  |  |
Total interest incurred | $ | 18,520 |  |  | $ | 21,213 |  |  |  |  |  |
Interest capitalized | (1,312) |  |  | (5,309) |  |  |  |  |  |
Total interest expense | $ | 17,208 |  |  | $ | 15,904 |  |  |  |  |  |

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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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