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Debt | 3 Months Ended
--- | ---
Mar. 31, 2014
Debt Disclosure [Abstract] |
Debt | Debt Our debt consisted of the following (dollars in thousands):
| Maximum |  |  |  |  |  |  |  |
| Availability at |  | Carrying Value at |  |  |  | Scheduled Maturity
| March 31, 2014 |  | March 31, 2014 |  | December 31, 2013 |  | Stated Interest Rates as of |  | as of
|  |  |  | March 31, 2014 |  | March 31, 2014
Mortgage and Other Secured Loans: |  |  |  |  |  |  |  |  |  |  |  |
Fixed rate mortgage loans (1) | (2) |  | $ | 679,260 |  |  | $ | 675,060 |  |  | 3.96% - 7.87% (3) |  | 2014-2024
Variable rate secured loan |  |  |  | 37,491 |  |  | 37,691 |  |  | LIBOR + 2.25% (4) |  | November 2015
Total mortgage and other secured loans |  |  |  | 716,751 |  |  | 712,751 |  |  |  |  |
Revolving Credit Facility (5) | $ | 800,000 |  |  | — |  |  | — |  |  | LIBOR + 0.975% to 1.75% |  | July 2017
Term Loan Facilities | (6) |  | 620,000 |  |  | 620,000 |  |  | LIBOR + 1.10% to 2.60% (7) |  | 2015-2019
Unsecured Senior Notes |  |  |  |  |  |  |  |  |
3.600% Senior Notes (8) |  |  |  | 347,306 |  |  | 347,244 |  |  | 3.60% |  | May 2023
5.250% Senior Notes (9) |  |  |  | 245,532 |  |  | 245,445 |  |  | 5.25% |  | February 2024
Unsecured notes payable |  |  |  | 1,677 |  |  | 1,700 |  |  | 0% (10) |  | 2026
4.25% Exchangeable Senior Notes (11) |  |  |  | 565 |  |  | 563 |  |  | 4.25% |  | April 2030
Total debt, net |  |  |  | $ | 1,931,831 |  |  | $ | 1,927,703 |  |  |  |  |
(1) | Several of the fixed rate mortgages carry interest rates that were above or below market rates upon assumption and therefore were recorded at their fair value based on applicable effective interest rates. The carrying values of these loans reflect net unamortized premiums totaling $62,000 as of March 31, 2014 and $69,000 as of December 31, 2013.
(2) | Includes $19.8 million balance on construction loans with maximum available borrowings of $26.2 million.
(3) | The weighted average interest rate on these loans was 6.12% as of March 31, 2014.
(4) | The interest rate on the loan outstanding was 2.41% as of March 31, 2014.
(5) | No borrowings were outstanding on this facility during the three months ended March 31, 2014.
(6) | We have the ability to borrow an aggregate of an additional $180.0 million under these term loan facilities, provided that there is no default under the facilities and subject to the approval of the lenders.
(7) | The weighted average interest rate on these loans was 1.78% as of March 31, 2014.
(8) | The carrying value of these notes included a principal amount of $350.0 million and an unamortized discount totaling $2.7 million as of March 31, 2014 and $2.8 million as of December 31, 2013. The effective interest rate under the notes, including amortization of the issuance costs, was 3.70%.
(9) | The carrying value of these notes included a principal amount of $250.0 million and an unamortized discount totaling $4.5 million as of March 31, 2014 and $4.6 million as of December 31, 2013. The effective interest rate under the notes, including amortization of the issuance costs, was 5.49%.
(10) | These notes carry interest rates that were below market rates upon assumption and therefore were recorded at their fair value based on applicable effective interest rates. The carrying value of these notes reflects an unamortized discount totaling $734,000 as of March 31, 2014 and $761,000 as of December 31, 2013.
(11) | As described further in our 2013 Annual Report on Form 10-K, these notes have an exchange settlement feature that provides that the notes may, under certain circumstances, be exchangeable for cash and, at COPLP’s discretion, COPT common shares at an exchange rate (subject to adjustment) of 20.8513 shares per one thousand dollar principal amount of the notes (exchange rate is as of March 31, 2014 and is equivalent to an exchange price of $47.96 per common share). The carrying value of these notes included a principal amount of $575,000 and an unamortized discount totaling $10,000 as of March 31, 2014 and $12,000 as of December 31, 2013. The effective interest rate under the notes, including amortization of the issuance costs, was 6.05%. Because the closing price of our common shares as of March 31, 2014 and December 31, 2013 was less than the exchange price per common share applicable to these notes, the if-converted value of the notes did not exceed the principal amount. The table below sets forth interest expense recognized on these notes before deductions for amounts capitalized (in thousands):
|  | For the Three Months Ended March 31,
|  | 2014 |  | 2013
Interest expense at stated interest rate |  | $ | 6 |  |  | $ | 2,304 |
Interest expense associated with amortization of discount |  | 3 |  |  | 864 |
Total |  | $ | 9 |  |  | $ | 3,168 |
All debt is owed by the Operating Partnership. While COPT is not directly obligated by any debt, it has guaranteed our Revolving Credit Facility, Term Loan Facilities, Unsecured Senior Notes and 4.25% Exchangeable Senior Notes. In April 2014, a wholly owned subsidiary of ours defaulted on the payment terms of a $150.0 million nonrecourse mortgage loan secured by two operating properties in Northern Virginia with an aggregate estimated fair value that was less than the loan balance. This loan has an interest rate of 5.65% and is scheduled to mature in 2017. We capitalized interest costs of $1.6 million in the three months ended March 31, 2014 and $2.4 million in the three months ended March 31, 2013. The following table sets forth information pertaining to the fair value of our debt (in thousands):
| March 31, 2014 |  | December 31, 2013
| Carrying |  | Estimated |  | Carrying |  | Estimated
| Amount |  | Fair Value |  | Amount |  | Fair Value
Fixed-rate debt |  |  |  |  |  |  |  |  |  |  |
Unsecured Senior Notes | $ | 592,838 |  |  | $ | 584,178 |  |  | $ | 592,689 |  |  | $ | 575,374 |
4.25% Exchangeable Senior Notes | 565 |  |  | 575 |  |  | 563 |  |  | 575 |
Other fixed-rate debt | 680,937 |  |  | 668,949 |  |  | 676,760 |  |  | 650,997 |
Variable-rate debt | 657,491 |  |  | 657,420 |  |  | 657,691 |  |  | 657,527 |
| $ | 1,931,831 |  |  | $ | 1,911,122 |  |  | $ | 1,927,703 |  |  | $ | 1,884,473 |

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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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