v3.20.2

Unsecured Credit Agreements | 6 Months Ended
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Jun. 30, 2020
Debt Disclosure [Abstract] |
Unsecured Credit Agreements | 9. Unsecured Credit Agreements The following table summarizes the Company’s unsecured credit agreements:
|  | Outstanding Balance |  |  |  |  |  |  |
(in thousands, except interest rates) |  | June 30, 2020 |  |  | December 31, 2019 |  |  | Interest Rate(c) |  |  | Maturity Date
2020 Unsecured Term Loan(a) |  | $ | 240,000 |  |  | $ | 300,000 |  |  | one-month LIBOR + 1.25% |  |  | Feb. 2021(d)
Unsecured Revolving Credit and Term Loan Agreement(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revolving Credit Facility |  |  | 248,300 |  |  |  | 197,300 |  |  | one-month LIBOR + 1.20% |  |  | Jan. 2022
2023 Unsecured Term Loan |  |  | 265,000 |  |  |  | 265,000 |  |  | one-month LIBOR + 1.35% |  |  | Jan. 2023
2024 Unsecured Term Loan |  |  | 190,000 |  |  |  | 190,000 |  |  | one-month LIBOR + 1.25% |  |  | Jun. 2024
|  |  | 703,300 |  |  |  | 652,300 |  |  |  |  |  |  |
2022 Unsecured Term Loan(a) |  |  | 60,000 |  |  |  | — |  |  | one-month LIBOR + 1.25% |  |  | Feb. 2022
2026 Unsecured Term Loan(a) |  |  | 450,000 |  |  |  | 450,000 |  |  | one-month LIBOR + 1.85% |  |  | Feb. 2026
Senior Notes(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Series A |  |  | 150,000 |  |  |  | 150,000 |  |  | 4.84% |  |  | Apr. 2027
Series B |  |  | 225,000 |  |  |  | 225,000 |  |  | 5.09% |  |  | Jul. 2028
Series C |  |  | 100,000 |  |  |  | 100,000 |  |  | 5.19% |  |  | Jul. 2030
|  |  | 475,000 |  |  |  | 475,000 |  |  |  |  |  |  |
Total |  |  | 1,928,300 |  |  |  | 1,877,300 |  |  |  |  |  |  |
Debt issuance costs, net(b) |  |  | (6,908 | ) |  |  | (7,919 | ) |  |  |  |  |  |
|  | $ | 1,921,392 |  |  | $ | 1,869,381 |  |  |  |  |  |  |
(a) | The Company believes it was in compliance with all financial covenants for all periods presented.
(b) | Amounts presented include debt issuance costs, net, related to the unsecured term notes and senior notes only.
(c) | At June 30, 2020 and December 31, 2019, one-month LIBOR was 0.16% and 1.76%, respectively.
(d) | The 2020 Unsecured Term Loan was originally due in August 2020, and allows two six-month extensions, at the Company’s option, subject to the Company being in compliance with the debt covenants and customary representations and warranties, and payment of a fee equal to 0.05% of the outstanding principal balance at the time of extension. On May 5, 2020, the Company exercised the first of these options, effective on August 2, 2020, extending the maturity date of the 2020 Unsecured Term Loan to February 2, 2021.
On February 7, 2020, the Company entered into a $60,000 term loan agreement maturing on February 28, 2022 (the “2022 Unsecured Term Loan”) with JP Morgan Chase, N.A. as administrative agent. The 2022 Unsecured Term Loan was fully funded at closing and used to repay a portion of the debt assumed by the Company as part of the Internalization. Borrowings under the 2022 Unsecured Term Loan are subject to interest only payments at variable rates equal to LIBOR plus a margin based upon the Company’s credit rating, ranging between 0.85% and 1.65% per annum. Based on the Company’s current credit rating the applicable margin was 1.25% as of June 30, 2020. At June 30, 2020, the weighted average interest rate on all outstanding borrowings was 2.45%, exclusive of interest rate swap agreements. In addition, the Revolving Credit Facility is subject to a facility fee of 0.25% per annum. For the six months ended June 30, 2019, the Company paid $5,229 in debt issuance costs associated with the 2026 Unsecured Term Loan and the Unsecured Revolving Credit and Term Loan Agreement. For each separate debt instrument, on a lender by lender basis, in accordance with ASC 470-50, Debt Modifications and Extinguishment, the Company performed an assessment of whether the transaction was deemed to be new debt, a modification of existing debt, or an extinguishment of existing debt. Debt issuance costs are either deferred and amortized over the term of the associated debt or expensed as incurred. Based on this assessment, $5,229 of the debt issuance costs incurred during the six months ended June 30, 2019, were deemed to be related to the issuance of new debt, or the modification of existing debt, and therefore have been deferred and are being amortized over the term of the associated debt. Additionally, $215 of unamortized debt issuance costs were expensed during the six months ended June 30, 2019, and included in Cost of debt extinguishment in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income (Loss). Debt issuance costs are amortized as a component of interest expense in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income (Loss). The following table summarizes debt issuance cost amortization:
|  | For the three months ended June 30, |  |  | For the six months ended June 30, |
(in thousands) |  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Debt issuance costs amortization |  | $ | 821 |  |  | $ | 597 |  |  | $ | 1,709 |  |  | $ | 1,150 |
The Company is subject to various financial and operational covenants and financial reporting requirements pursuant to its unsecured credit agreements. These covenants require the Company to maintain certain financial ratios, including leverage, fixed charge coverage, and debt service coverage, among others. As of June 30, 2020, the Company believes it was in compliance with all of its loan covenants. The Company’s continued compliance with these covenants depends on many factors and could be impacted by current or future economic conditions associated with the COVID-19 pandemic (see Note 18), and thus there are no assurances that the Company will continue to be in compliance with its covenants. Failure to comply with the covenants would result in a default which, if the Company were unable to cure or obtain a waiver from the lenders, could accelerate the repayment of the obligations. Further, in the event of default, the Company may be restricted from paying dividends to its stockholders in excess of dividends required to maintain its REIT qualification. Accordingly, an event of default could have a material and adverse impact on the Company.

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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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