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Debt (Tables) | 9 Months Ended
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Sep. 30, 2018
Debt Disclosure [Abstract] |
Schedule of long-term debt instruments | The following table sets forth information with respect to our outstanding indebtedness:
| September 30, 2018 |  | December 31, 2017 |  | Interest Rate(1) |  | Contractual Maturity Date |
UNSECURED AND SECURED DEBT |  |  |  |  |  |  |  |
Unsecured debt |  |  |  |  |  |  |  |
Unsecured revolving credit facility(2)(3) | $ | 110,000 |  | $ | 100,000 |  | LIBOR + 1.05% to 1.50% |  | 3/13/2022 | (4)
Term loan A(2)(5) | 300,000 |  | 300,000 |  | LIBOR + 1.20% to 1.70% |  | 4/1/2020 | (6)
Term loan C(2) | 75,000 |  | 75,000 |  | LIBOR + 1.30% to 2.20% |  | 11/17/2020 |
Term loan B(2)(7) | 350,000 |  | 350,000 |  | LIBOR + 1.20% to 1.70% |  | 4/1/2022 |
Term loan D(2)(8) | 125,000 |  | 125,000 |  | LIBOR + 1.20% to 1.70% |  | 11/17/2022 |
Series A notes | 110,000 |  | 110,000 |  | 4.34% |  |  | 1/2/2023 |
Series E notes | 50,000 |  | 50,000 |  | 3.66% |  |  | 9/15/2023 |
Series B notes | 259,000 |  | 259,000 |  | 4.69% |  |  | 12/16/2025 |
Series D notes | 150,000 |  | 150,000 |  | 3.98% |  |  | 7/6/2026 |
Registered senior notes | 400,000 |  | 400,000 |  | 3.95% |  |  | 11/1/2027 |
Series C notes | 56,000 |  | 56,000 |  | 4.79% |  |  | 12/16/2027 |
Total unsecured debt | 1,985,000 |  | 1,975,000 |  |  |  |  |
Secured debt |  |  |  |  |  |  |  |
Sunset Gower Studios/Sunset Bronson Studios(9) | 5,001 |  | 5,001 |  | LIBOR + 2.25% |  | 3/4/2019 | (4)
Met Park North(10) | 64,500 |  | 64,500 |  | LIBOR + 1.55% |  | 8/1/2020 |
10950 Washington(11) | 27,018 |  | 27,418 |  | 5.32% |  |  | 3/11/2022 |
Element LA | 168,000 |  | 168,000 |  | 4.59% |  |  | 11/6/2025 |
Hill7(12) | 101,000 |  | 101,000 |  | 3.38% |  |  | 11/6/2028 |
Rincon Center | — |  | 98,392 |  | 5.13% |  |  | N/A |
Total secured debt | 365,519 |  | 464,311 |  |  |  |  |
Total unsecured and secured debt | 2,350,519 |  | 2,439,311 |  |  |  |  |
Unamortized deferred financing costs and loan discounts(13) | (17,724) |  | (17,931) |  |  |  |  |
TOTAL UNSECURED AND SECURED DEBT, NET | $ | 2,332,795 |  | $ | 2,421,380 |  |  |  |  |
IN-SUBSTANCE DEFEASED DEBT(14) | $ | 139,003 |  | $ | — |  | 4.47% |  | 10/1/2022 |
_________________ 1. Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rates are as of September 30, 2018, which may be different than the interest rates as of December 31, 2017 for corresponding indebtedness. 2. The Company has an option to make an irrevocable election to change the interest rate depending on the Company’s credit rating or a specified base rate plus an applicable margin. As of September 30, 2018, no such election had been made. 3. The Company has a total capacity of $600.0 million under its unsecured revolving credit facility. 4. The maturity date may be extended once for an additional one-year term. 5. The interest rate on the outstanding balance of the term loan was effectively fixed at 2.56% to 3.06% per annum through the use of two interest rate swaps. See Note 8 for details. 6. The maturity date may be extended twice, each time for an additional one-year term. 7. The interest rate on the outstanding balance of the term loan was effectively fixed at 2.96% to 3.46% per annum through the use of two interest rate swaps. See Note 8 for details. 8. The interest rate on the outstanding balance of the term loan was effectively fixed at 2.63% to 3.13% per annum through the use of an interest rate swap. See Note 8 for details. 9. The Company has the ability to draw up to $257.0 million under its construction loan, subject to lender required submissions. This loan is also secured by the Company’s ICON and CUE properties. 10. This loan bears interest only. The interest rate on the full loan amount has been effectively fixed at 3.71% per annum through the use of an interest rate swap. See Note 8 for details. 11. Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity. 12. The Company owns 55% of the ownership interest in the consolidated joint venture that owns the Hill7 property. The full amount of the loan is shown. This loan bears interest only at 3.38% until November 6, 2026, at which time the interest rate will increase and monthly debt service will include principal payments with a balloon payment at maturity. 13. Excludes deferred financing costs related to establishing the Company’s unsecured revolving credit facility. 14. On August 31, 2018, the Company assumed the debt held by a trust subsidiary of the consolidated joint venture that owns the One Westside and 10850 Pico properties. While the Company owns 75% of the ownership interest in the joint venture, the full amount of the loan is shown. The joint venture has, in-substance, defeased the debt by purchasing U.S. Government securities, which are intended to generate cash flows to fund loan obligations through the early prepayment date of the debt. Monthly debt service includes annual debt amortization payments based on a 10-year amortization schedule with a balloon payment at maturity.
Schedule of maturities of long-term debt | The following table summarizes the minimum future principal payments due (before the impact of extension options, if applicable) on the Company's debt as of September 30, 2018:
Year | In-substance Defeased Debt |  | Unsecured and Secured Debt
Remaining 2018 | $ | 780 |  | $ | 138
2019 | 3,193 |  | 5,569
2020 | 3,323 |  | 440,095
2021 | 3,494 |  | 632
2022 | 128,213 |  | 610,085
Thereafter | — |  | 1,294,000
TOTAL | $ | 139,003 |  | $ | 2,350,519
Summary of balance and key terms of the unsecured revolving credit facility | The following table summarizes the balance and key terms of the unsecured revolving credit facility as of:
| September 30, 2018 |  | December 31, 2017
Outstanding borrowings | $ | 110,000 |  | $ | 100,000
Remaining borrowing capacity | 490,000 |  | 300,000
TOTAL BORROWING CAPACITY | $ | 600,000 |  | $ | 400,000
Interest rate(1)(2) | LIBOR + 1.05% to 1.50% |  | LIBOR + 1.15% to 1.85%
Annual facility fee rate(1) | 0.15% or 0.30% |  | 0.20% or 0.35%
Contractual maturity date(3) | 3/13/2022 |  | 4/1/2019
_________________ 1. The rate is based on the operating partnership’s leverage ratio. The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of September 30, 2018, no such election had been made. 2. The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s specified base rate plus an applicable margin. As of September 30, 2018, no such election had been made. 3. The maturity date may be extended once for an additional one-year term.
Summary of existing covenants and their covenant levels | The following table summarizes existing covenants and their covenant levels related to our unsecured revolving credit facility, term loans, and series A, B, C, D and E notes, when considering the most restrictive terms:
Covenant Ratio |  | Covenant Level
Total liabilities to total asset value |  | ≤ 60%
Unsecured indebtedness to unencumbered asset value |  | ≤ 60%
Adjusted EBITDA to fixed charges |  | ≥ 1.5x
Secured indebtedness to total asset value |  | ≤ 45%
Unencumbered NOI to unsecured interest expense |  | ≥ 2.0x
The following table summarizes existing covenants and their covenant levels related to our registered senior notes:
Covenant Ratio |  | Covenant Level
Debt to total assets |  | ≤ 60%
Total unencumbered assets to unsecured debt |  | ≥ 150%
Consolidated income available for debt service to annual debt service charge |  | ≥ 1.5x
Secured debt to total assets |  | ≤ 45%
Schedule of interest costs incurred | The following table represents a reconciliation from gross interest expense to the interest expense line item in the Consolidated Statements of Operations:
| Three Months Ended September 30, |  |  |  | Nine Months Ended September 30, |  |
| 2018 |  | 2017 |  | 2018 |  | 2017
Gross interest expense(1) | $ | 22,136 |  | $ | 24,107 |  | $ | 66,081 |  | $ | 70,345
Capitalized interest | (3,439) |  | (2,831) |  | (10,643) |  | (7,817)
Amortization of deferred financing costs and loan discount | 1,434 |  | 1,185 |  | 4,527 |  | 3,558
INTEREST EXPENSE | $ | 20,131 |  | $ | 22,461 |  | $ | 59,965 |  | $ | 66,086
_________________ 1. Includes interest on the Company’s debt and hedging activities.

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