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Indebtedness | 6 Months Ended
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Jun. 30, 2016
Debt Disclosure [Abstract] |
Indebtedness | NOTE 4: Indebtedness The following tables contain summary information concerning our indebtedness as of June 30, 2016:
Debt: |  | Outstanding Principal |  |  | Unamortized Discount and Debt Issuance Costs |  |  | Carrying Amount |  |  | Type |  | Weighted Average Rate |  |  | Weighted Average Maturity (in years) |
Secured credit facility (1)(2) |  | $ | 247,335 |  |  | $ | (3,731 | ) |  | $ | 243,604 |  |  | Floating |  |  | 2.9% |  |  |  | 2.2 |
Term loan (2) |  |  | 40,000 |  |  | $ | (441 | ) |  |  | 39,559 |  |  | Floating |  |  | 4.5% |  |  |  | 2.2 |
Mortgages-Fixed rate |  |  | 601,047 |  |  |  | (3,922 | ) |  |  | 597,125 |  |  | Fixed |  |  | 3.8% |  |  |  | 7.2 |
Total Debt |  | $ | 888,382 |  |  | $ | (8,094 | ) |  | $ | 880,288 |  |  |  |  |  | 3.6% |  |  |  | 5.6 |
| (1) | The secured credit facility total capacity is $325,000, of which $247,335 was outstanding as of June 30, 2016.
| (2) | As of June 30, 2016, IRT maintained a float-to-fixed interest rate swap with a $ 150,000 notional amount. This swap, which expires on June 17, 2021 and has a fixed rate of 1.145%, has converted $ 150,000 of our floating rate debt to fixed rate debt.
|  | Original maturities on or before December 31, |
Debt: |  | 2016 |  |  | 2017 |  |  | 2018 |  |  | 2019 |  |  | 2020 |  |  | Thereafter |
Secured credit facility |  | $ | - |  |  | $ | - |  |  | $ | 247,335 |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Term loan |  |  | - |  |  |  | 600 |  |  |  | 39,400 |  |  |  | - |  |  |  | - |  |  |  | - |
Mortgages-Fixed rate |  |  | 772 |  |  |  | 2,845 |  |  |  | 3,568 |  |  |  | 4,723 |  |  |  | 15,877 |  |  |  | 573,262 |
Total |  | $ | 772 |  |  | $ | 3,445 |  |  | $ | 290,303 |  |  | $ | 4,723 |  |  | $ | 15,877 |  |  | $ | 573,262 |
As of June 30, 2016 we were in compliance with all financial covenants contained in our indebtedness. The following table contains summary information concerning our indebtedness as of December 31, 2015:
Debt: |  | Outstanding Principal |  |  | Unamortized Discount and Debt Issuance Costs |  |  | Carrying Amount |  |  | Type |  | Rate |  |  | Weighted Average Maturity (in years) |
Secured credit facility (1) |  | $ | 271,500 |  |  | $ | (4,345 | ) |  | $ | 267,155 |  |  | Floating |  |  | 2.9% |  |  |  | 2.7 |
Bridge term loan |  |  | 120,000 |  |  | $ | (1,582 | ) |  |  | 118,418 |  |  | Floating |  |  | 5.4% |  |  |  | 0.7 |
Mortgages-Fixed rate |  |  | 545,956 |  |  |  | (2,993 | ) |  |  | 542,963 |  |  | Fixed |  |  | 3.8% |  |  |  | 6.9 |
Mortgages-Floating rate |  |  | 38,075 |  |  |  | - |  |  |  | 38,075 |  |  | Floating |  |  | 2.8% |  |  |  | 5.4 |
Total Debt |  | $ | 975,531 |  |  | $ | (8,920 | ) |  | $ | 966,611 |  |  |  |  |  | 3.7% |  |  |  | 4.9 |
| (1) | The secured credit facility total capacity was $325,000, of which $271,500 was outstanding as of December 31, 2015.
As of June 30, 2016, the weighted average interest rate of our mortgage indebtedness was 3.8%. As of June 30, 2016 and December 31, 2015, RAIT held $0 and $38,075 of our mortgage indebtedness, respectively. For the three and six months ended June 30, 2016, we incurred approximately $96 and $361, respectively, of interest expense related to the RAIT indebtedness. For the three and six months ended June 30, 2015, we incurred approximately $241 and $479, respectively, of interest expense related to the RAIT indebtedness. Secured Credit Facility On September 17, 2015, IROP entered into a credit agreement with KeyBank with respect to a $325,000 senior secured credit facility, or the secured credit facility, which will mature on September 17, 2018. The secured credit facility is available for additional loans, may be increased to $450,000 and/or extended for two 12-month terms. At June 30, 2016, amounts outstanding under the secured credit facility bear interest at 245 basis points over 1-month LIBOR. As of June 30, 2016, there was $77,665 of availability under the revolver bearing interest at 0.25000%. In March of 2016, IROP drew down $8,000 on the secured credit facility, which was used to repay $6,000 of the interim facility, discussed below. In March of 2016, IROP drew down $45,476 on the secured credit facility, which was used to satisfy the existing mortgages and closing costs relating to the Oklahoma City portfolio of properties which were acquired in 2014. In May of 2016, IROP repaid $77,665 on the secured credit facility with the proceeds received from entering into permanent financing relating to Aston, Avenues at Craig Ranch and Waterstone at Big Creek which were all acquired in 2015. On September 17, 2015, IROP entered into a credit agreement with respect to a $120,000 senior interim term loan facility, or the interim facility. The interim facility was amended and restated to replace the interim facility with a $40,000 senior secured term loan, as described below. In January and February of 2016, IROP repaid $23,784 of the interim facility subsequent to two property dispositions. In April and May of 2016, IROP repaid $30,000 of the interim facility subsequent to two property dispositions. In May of 2016, IROP repaid $26,704 of the interim facility subsequent to the permanent financing of two properties with seven and ten year fixed-rate mortgages. As noted above, the interim facility was amended and restated to provide for a $40,000 senior secured term loan, or the term loan, on June 24, 2016. Upon entering into the term loan, IROP borrowed $40,000, using $416 to pay closing costs and $33,512 to repay the remaining balance under the interim facility. The maturity date of the term loan is September 17, 2018, subject to acceleration in the event of customary events of default. The term loan requires monthly payments of interest only through June 30, 2017. IROP is required to reduce the principal amount outstanding under the term loan by $100 per month beginning July 2017 and must apply 50% of all net proceeds from equity issuances, sales of assets, or refinancings of assets towards repaying the term loan. At IROP’s option, borrowings under the term loan will bear interest at a rate equal to either (i) LIBOR plus a margin of 400 basis points, or (ii) a base rate plus a margin of 300 basis points. IROP may prepay the term loan, in whole or in part, at any time without fee or penalty, except for breakage costs associated with LIBOR borrowings. At June 30, 2016, the term loan bears interest at 400 basis points over 1-month LIBOR and the balance is $40,000. Mortgages-Fixed Rate In February of 2016, we repaid $6,659 of mortgage indebtedness as part of a property disposition. In March of 2016, we repaid $43,694 of mortgage indebtedness related to the Oklahoma City portfolio of properties we acquired in 2014 through a refinancing whereby IROP drew down on the secured credit facility. On May 26, 2016, we entered into a loan agreement for a $25,050 loan secured by a first mortgage on our Aston property. The loan bears interest at a rate of 3.4% per annum, provides for monthly payments of interest only through December 2019, when principal and interest payments will be due monthly based on a 30-year amortization schedule, and matures June 2023. On May 17, 2016, we entered into a loan agreement for a $31,250 loan secured by a first mortgage on our Avenues at Craig Ranch property. The loan bears interest at a rate of 3.3% per annum, provides for monthly payments of interest only through May 2019, when principal and interest payments will be due monthly based on a 30-year amortization schedule, and matures June 2023. On May 20, 2016, we entered into a loan agreement for a $49,680 loan secured by a first mortgage on our Waterstone at Big Creek property. The loan bears interest at a rate of 3.7% per annum, provides for monthly payments of interest only through June 2019, when principal and interest payments will be due monthly based on a 30-year amortization schedule, and matures June 2026. Mortgages-Floating Rate In April of 2016, we repaid $10,575 of mortgage indebtedness as part of a property disposition. This indebtedness was held by RAIT. During the three and six months ended June 30, 2016, we paid $211 in exit fees pursuant to the contractual terms of the mortgage indebtedness to RAIT. In May of 2016, we repaid $27,500 of mortgage indebtedness as part of a property disposition. This indebtedness was held by RAIT. During the three and six months ended June 30, 2016, we paid $275 in exit fees pursuant to the contractual terms of the mortgage indebtedness to RAIT.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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