XML 30 R13.htm IDEA: XBRL DOCUMENT v3.22.2.2
Debt Obligations
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Debt Obligations
6. DEBT OBLIGATIONS
The following is a summary of the outstanding principal balances and interest rates, which include the effect of derivative financial instruments, for our debt obligations as of September 30, 2022 and December 31, 2021 (dollars in thousands):
   
Interest Rate(1)
September 30, 2022December 31, 2021
Revolving credit facility
SOFR + 1.2%
$55,000 $— 
Term loans(2)
2.5% - 4.2%
955,000 955,000 
Senior unsecured notes due 20312.6%350,000 350,000 
Secured loan facilities
3.4% - 3.5%
395,000 395,000 
Mortgages
3.5% - 6.4%
134,419 213,316 
Finance lease liability620 766 
Discount on notes payable(7,172)(7,680)
Assumed market debt adjustments, net(1,353)(1,530)
Deferred financing expenses, net(8,575)(13,150)
Total  $1,872,939 $1,891,722 
Weighted-average interest rate(3)
3.3 %3.3 %
(1)Interest rates are as of September 30, 2022.
(2)Our term loans carry an interest rate of LIBOR or SOFR plus a spread. While most of the rates are fixed through the use of swaps, a portion of these loans are not subject to a swap, and thus are still indexed to LIBOR or SOFR, as applicable.
(3)Includes the effects of derivative financial instruments (see Notes 7 and 12).
2022 Debt Activity—In May 2022, we amended our credit facility agreement (the “Amendment”) to, among other things, increase the total amount available under our unsecured revolving credit facility from $500 million to $800 million. The unsecured revolving credit facility also includes an accordion feature that permits us to increase our aggregate borrowing capacity thereunder to up to $1 billion, subject to the satisfaction of certain conditions. The unsecured revolving credit facility is scheduled to mature in January 2026, extendable at our option to January 2027. In addition to expanding the borrowing capacity, the Amendment replaces the London Interbank Offered Rate (“LIBOR”) with the Secured Overnight Financing Rate (“SOFR”) as the benchmark interest rate for the unsecured revolving credit facility and the two $240 million senior unsecured term loan tranches, maturing in November 2025 and July 2026. In August 2022, we amended two of our interest rate swaps with a total notional amount of $430 million to replace LIBOR with SOFR as the benchmark interest rate in conjunction with the Amendment (see Note 7).
During the nine months ended September 30, 2022, we executed early repayments of $74.9 million in mortgage debt.
Debt Allocation—The allocation of total debt between fixed-rate and variable-rate as well as between secured and unsecured, excluding market debt adjustments, discount on senior notes, and deferred financing expenses, net, and including the effects of derivative financial instruments as of September 30, 2022 and December 31, 2021 is summarized below (in thousands):
   September 30, 2022December 31, 2021
As to interest rate:
Fixed-rate debt(1)
$1,635,039 $1,889,082
Variable-rate debt255,000 25,000
Total$1,890,039 $1,914,082
As to collateralization:
Unsecured debt$1,360,000 $1,305,000
Secured debt530,039 609,082
Total  $1,890,039 $1,914,082
(1)Fixed-rate debt includes, and variable-rate debt excludes, the portion of such debt that has been hedged by interest rate derivatives. As of September 30, 2022, $755 million in variable rate debt is hedged to a fixed rate for a weighted-average period of 1.8 years.