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Debt of the Operating Partnership (Tanger Properties Limited Partnership [Member]) | 12 Months Ended
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Dec. 31, 2014
Tanger Properties Limited Partnership [Member] |
Debt of the Operating Partnership | Debt of the Operating Partnership Debt as of December 31, 2014 and 2013 consists of the following (in thousands):
|  |  |  |  |  | As of |  | As of
|  |  |  |  |  | December 31, 2014 |  | December 31, 2013
|  | Stated Interest Rate(s) |  | Maturity Date |  | Principal |  | Premium (Discount) |  | Principal |  | Premium (Discount)
Senior, unsecured notes: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Senior notes |  | 6.15 | % |  | November 2015 |  | $ | — |  |  | $ | — |  |  | $ | 250,000 |  |  | $ | (211 | )
Senior notes |  | 6.125 | % |  | June 2020 |  | 300,000 |  |  | (1,276 | ) |  | 300,000 |  |  | (1,469 | )
Senior notes |  | 3.875 | % |  | December 2023 |  | 250,000 |  |  | (3,732 | ) |  | 250,000 |  |  | (4,072 | )
Senior notes |  | 3.750 | % |  | December 2024 |  | $ | 250,000 |  |  | $ | (1,418 | ) |  | — |  |  | — |
Mortgages payable: |  |  |  |  |  |  |  |  |  |  |  |
Atlantic City (1) |  | 5.14%-7.65% |  |  | November 2021- December 2026 |  | 45,997 |  |  | 3,694 |  |  | 48,535 |  |  | 4,091 |
Deer Park |  | LIBOR + 1.50% |  |  | August 2018 |  | 150,000 |  |  | (1,161 | ) |  | 150,000 |  |  | (1,478 | )
Hershey (1) |  | 5.17%-8.00% |  |  | August 2015 |  | 29,271 |  |  | 399 |  |  | 29,970 |  |  | 993 |
Ocean City (1) |  | 5.24 | % |  | January 2016 |  | 17,827 |  |  | 99 |  |  | 18,193 |  |  | 193 |
Foxwoods |  | LIBOR + 1.65% |  |  | December 2017 |  | 25,235 |  |  | — |  |  | — |  |  | — |
Note payable (1) |  | 1.50 | % |  | June 2016 |  | 10,000 |  |  | (241 | ) |  | 10,000 |  |  | (396 | )
Unsecured term loan |  | LIBOR + 1.05% |  |  | February 2019 |  | 250,000 |  |  | — |  |  | 250,000 |  |  | — |
Unsecured term note |  | LIBOR + 1.30% |  |  | August 2017 |  | 7,500 |  |  | — |  |  | 7,500 |  |  | — |
Unsecured lines of credit |  | LIBOR + 1.00% |  |  | October 2017 |  | 111,000 |  |  | — |  |  | 16,200 |  |  | — |
|  |  |  |  |  | $ | 1,446,830 |  |  | $ | (3,636 | ) |  | $ | 1,330,398 |  |  | $ | (2,349 | )
(1) | The effective interest rates assigned during the purchase price allocation to these assumed mortgages and note payable during acquisitions in 2011 were as follows: Atlantic City 5.05%, Ocean City 4.68%, Hershey 3.40% and note payable 3.15%.
Certain of our properties, which had a net book value of approximately $602.7 million at December 31, 2014, serve as collateral for mortgages payable. We maintain unsecured lines of credit that provide for borrowings of up to $520.0 million. The unsecured lines of credit include a $20.0 million liquidity line and a $500.0 million syndicated line. The syndicated line may be increased to $750.0 million through an accordion feature in certain circumstances. We provide guarantees to lenders for our joint ventures which include standard non-recourse carve out indemnifications for losses arising from items such as but not limited to fraud, physical waste, payment of taxes, environmental indemnities, misapplication of insurance proceeds or security deposits and failure to maintain required insurance. For construction and term loans, we may include a guaranty of completion as well as a principal guaranty ranging from 5% to 100% of principal. The principal guarantees include terms for release based upon satisfactory completion of construction and performance targets including occupancy thresholds and minimum debt service coverage tests. The unsecured lines of credit and senior unsecured notes include covenants that require the maintenance of certain ratios, including debt service coverage and leverage, and limit the payment of dividends such that dividends and distributions will not exceed funds from operations, as defined in the agreements, for the prior fiscal year on an annual basis or 95% of funds from operations on a cumulative basis. As of December 31, 2014, we were in compliance with all of our debt covenants. 2014 Transactions Foxwoods Mortgage In December 2014, the joint venture closed on a mortgage loan with the ability to borrow up to $70.3 million at an interest rate of LIBOR + 1.65%. The loan initially matures in December 2017, with two one -year extension options. The balance of this loan as of December 31, 2014 was $25.2 million. Amendment of $250.0 Million Unsecured Term Loan In July 2014, we entered into an amendment of our $250.0 million unsecured term loan which matures in February 2019. The amendment reduced the interest rate on the loan from LIBOR + 1.60% to LIBOR + 1.05%. No other material terms of the loan were amended. $250.0 Million Unsecured Senior Notes In November 2014, Tanger Properties Limited Partnership completed a public offering of $250.0 million in senior notes due 2024 in an underwritten public offering. The notes were priced at 99.429% of the principal amount to yield 3.819% to maturity. The notes will pay interest semi-annually at a rate of 3.750% per annum and mature on December 1, 2024. The net proceeds from the offering, after deducting the underwriting discount and offering expenses, were approximately $246.2 million. We used the net proceeds from the sale of the notes to redeem our $250.0 million 6.15% senior notes due November 2015. We recorded a charge of approximately $13.1 million for the make-whole premium related to the early redemption, which was completed in December 2014. 2013 Transactions Assumption of $150.0 Mortgage and Entrance into Derivatives In August 2013, as part of the acquisition of a controlling ownership interest in Deer Park, we assumed an $150.0 million interest only mortgage loan, including a fair value discount of $1.6 million. The loan has a five year term and carries an interest rate of LIBOR + 1.50%. In October 2013, we entered into interest rate swap agreements to reduce our floating rate debt exposure by locking the interest rate on the $150.0 million mortgage. The interest rate swap agreements fix the base LIBOR rate at an average of 1.30%, creating a contractual interest rate for the loan of 2.80% through August 2018. Extension of Unsecured Lines of Credit In October 2013, we closed on amendments to our unsecured lines of credit, extending the maturity, and reducing the overall borrowing costs. The maturity of these facilities was extended from November 10, 2015 to October 24, 2017 with the ability to further extend the maturity for an additional year at our option. The annual commitment fee, which is payable on the full $520.0 million in loan commitments, was reduced from 0.175% to 0.15%, and the interest rate spread over LIBOR was reduced from 1.10% to 1.00% based on our current credit rating. Loan origination costs associated with the amendments totaled approximately $1.5 million. $250.0 Million Unsecured Senior Notes In November 2013, Tanger Properties Limited Partnership completed a public offering of $250.0 million in senior notes due 2023 in an underwritten public offering. The notes were priced at 98.360% of the principal amount to yield 4.076% to maturity. The notes will pay interest semi-annually at a rate of 3.875% per annum and mature on December 1, 2023. The net proceeds from the offering, after deducting the underwriting discount and offering expenses, were approximately $243.6 million. We used the net proceeds from the sale of the notes to repay borrowings under our unsecured lines of credit. 2012 Transactions In February 2012, the Operating Partnership closed on a seven-year $250.0 million unsecured term loan. The term loan is interest only, matures in the first quarter of 2019 and is pre-payable without penalty beginning in February of 2015. Based on our credit ratings at that time, and until amended in July 2014, the loan had an interest rate of LIBOR + 1.60%. We used the net proceeds of the term loan to reduce the outstanding balances on our unsecured lines of credit. Debt Maturities Maturities of the existing long-term debt as of December 31, 2014 are as follows (in thousands):
Calendar Year |  | Amount
2015 |  | $ | 32,343 |
2016 |  | 30,283 |
2017 |  | 146,743 |
2018 |  | 153,183 |
2019 |  | 253,369 |
Thereafter |  | 830,909 |
Subtotal |  | 1,446,830 |
Net discount |  | (3,636 | )
Total |  | $ | 1,443,194 |

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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 SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: 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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