Debt

Mortgages payable

As of September 30, 2017 and December 31, 2016, the Company had the following mortgages payable outstanding:



	September 30, 2017			December 31, 2016
Mortgages payable (a)	$	370,029		$	374,796
Premium, net of accumulated amortization	538			—
Discount, net of accumulated amortization	(204		)	(317		)
Debt issuance costs, net of accumulated amortization	(1,704		)	(1,772		)
Total mortgages payable, net	$	368,659		$	372,707


(a)	Mortgages payable had fixed interest rates (for both conforming loans and loans in default) ranging from 3.49% to 10.45%, with a weighted average interest rate of 5.11% as of September 30, 2017, and 3.49% to 11.24%, with a weighted average interest rate of 4.85%, as of December 31, 2016.

Some of the mortgage loans require compliance with certain covenants, such as debt service coverage ratios, investment restrictions and distribution limitations. As of September 30, 2017, the Company was in compliance with all mortgage loan requirements except two loans in default with an aggregate carrying value of $43,187, both of which matured during the nine months ended September 30, 2017. As of December 31, 2016, the Company was in compliance with all mortgage loan requirements except one loan with a carrying value of $3,151, which matured in 2016. During 2017, the underlying multi-tenant retail asset was surrendered to the lender, as described in "Note 4. Disposed Properties". These loans are not cross-collateralized with any other mortgage loans and are not recourse to the Company.

The following table shows the scheduled maturities of the Company's mortgages payable as of September 30, 2017, for the remainder of 2017, each of the next four years, and thereafter.



	Maturities during the year ending December 31,
	2017		2018		2019		2020		2021		Thereafter		Total
Mortgages payable	$	43,187	$	59,575	$	—	$	41,000	$	12,894	$	213,373	$	370,029

The Company has the ability to repay, refinance or extend any of its debt, and the Company believes it has adequate sources of funds to meet short-term cash needs related to these refinancings or extensions. It is anticipated that the Company will use proceeds from sales, cash on hand, available capacity on term loan and line of credit, if any, to repay, refinance or extend the debt maturing in the near term. Of the total outstanding mortgages payable, approximately $3,000 is recourse to the Company at September 30, 2017 and is related to a wholly owned multi-tenant retail asset, and approximately $23,000 of mortgages payable related to multi-tenant retail assets owned by IAGM Retail Fund I, LLC is recourse to the Company at September 30, 2017.

During the nine months ended September 30, 2017, the Company assumed mortgage debt of $41,717 on one acquisition as part of non-cash financing activities.

Credit agreements

On November 5, 2015, the Company entered into a term loan credit agreement for a $300,000 unsecured credit facility with a syndicate of seven lenders led by Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith, Incorporated and PNC Capital Markets LLC as joint lead arrangers. The accordion feature allows the Company to increase the size of the unsecured term loan credit facility to $600,000, subject to certain conditions.

The term loan credit facility consists of two tranches: a five-year tranche maturing on January 15, 2021, and a seven-year tranche maturing on November 5, 2022. Interest rates are based on the Company's total leverage ratio. Based upon the Company's total leverage ratios, the five- and seven-year tranches bear interest at rates of 1-Month LIBOR plus 1.3% and 1-Month LIBOR plus 1.6%, respectively. As of September 30, 2017, the Company has swapped $150,000 of variable rate debt on the five-year tranche to fixed rate debt through two interest rate swaps.

The term loan credit facility is subject to maintenance of certain financial covenants. As of September 30, 2017 and December 31, 2016, the Company was in compliance with all of the covenants and default provisions under the credit agreement.

On February 3, 2015, the Company entered into an amended and restated credit agreement for a $300,000 unsecured revolving line of credit with KeyBank National Association, JP Morgan Chase Bank National Association and other financial institutions. The accordion feature allows the Company to increase the size of its unsecured line of credit up to $600,000, subject to certain conditions. The unsecured revolving line of credit matures on February 2, 2019 and contains one twelve-month extension option that the Company may exercise upon payment of an extension fee equal to 0.15% of the commitment amount on the maturity date and subject to certain other conditions. The unsecured revolving line of credit bears interest at a rate equal to 1-Month LIBOR plus 1.40% and requires the maintenance of certain financial covenants. The Company had $300,000 available under the revolving line of credit as of September 30, 2017.

The credit facility is subject to maintenance of certain financial covenants. As of September 30, 2017 and December 31, 2016, the Company was in compliance with all of the covenants and default provisions under the credit agreement.

As of September 30, 2017 and December 31, 2016, the Company had the following borrowings outstanding under its term loan credit facility:



	September 30, 2017				December 31, 2016
	Aggregate Principal Balance			Interest Rate	Aggregate Principal Balance			Interest Rate	Maturity Date
5 year - swapped to fixed rate (a)	$	90,000		1.3510%	$	90,000		1.3510%	1/15/2021
5 year - swapped to fixed rate (b)	60,000			1.3525%	60,000			1.3525%	1/15/2021
5 year - variable rate (c)	50,000			2.5372%	50,000			1.9167%	1/15/2021
7 year - variable rate (d)	100,000			2.8372%	100,000			2.2167%	11/5/2022
Total unsecured term loans	300,000				300,000
Issuance costs, net of accumulated amortization	(1,704		)		(2,044		)
	$	298,296			$	297,956


(a)	The Company swapped $90,000 of variable rate debt at an interest rate of 1-Month LIBOR plus 1.3% to a fixed rate of 1.3510%. The swap has an effective date of December 10, 2015, a termination date of December 1, 2019, and a notional amount of $90,000.


(b)	The Company swapped $60,000 of variable rate debt at an interest rate of 1-Month LIBOR plus 1.3% to a fixed rate of 1.3525%. The swap has an effective date of December 10, 2015, a termination date of December 1, 2019, and a notional amount of $60,000.


(c)	Interest rate reflects 1-Month LIBOR plus 1.3% as of September 30, 2017 and December 31, 2016.


(d)	Interest rate reflects 1-Month LIBOR plus 1.6% as of September 30, 2017 and December 31, 2016.