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Debt (Tables)
 9 Months Ended
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, 2018December 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, 2018December 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)
3/13/20224/1/2019
_________________
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, 
2018201720182017
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.