XML 123 R36.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Debt (Tables)
 12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
The following table sets forth information with respect to our outstanding indebtedness:
December 31, 2019December 31, 2018
Interest Rate(1)
Contractual Maturity Date
UNSECURED AND SECURED DEBT
Unsecured debt
Unsecured revolving credit facility(2)(3)
$75,000  $400,000  
LIBOR + 1.05% to 1.50%
3/13/2022
(4)
Term loan A(2)(5)
—  300,000  
LIBOR + 1.20% to 1.70%
4/1/2020
(9)
Term loan B(2)(6)
350,000  350,000  
LIBOR + 1.20% to 1.70%
4/1/2022
Term loan C(2)
—  75,000  
LIBOR + 1.30% to 2.20%
11/17/2020
Term loan D(2)(7)
125,000  125,000  
LIBOR + 1.20% to 1.70%
11/17/2022
Series A notes110,000  110,000  4.34%  1/2/2023
Series B notes259,000  259,000  4.69%  12/16/2025
Series C notes56,000  56,000  4.79%  12/16/2027
Series D notes150,000  150,000  3.98%  7/6/2026
Series E notes50,000  50,000  3.66%  9/15/2023
3.95% Registered senior notes400,000  400,000  3.95%  11/1/2027
4.65% Registered senior notes(8)
500,000  —  4.65%  4/1/2029
3.25% Registered senior notes(9)
400,000  —  3.25%  1/15/2030
Total unsecured debt2,475,000  2,275,000  
Secured debt
Met Park North(10)
64,500  64,500  
LIBOR + 1.55%
8/1/2020
10950 Washington(11)
26,312  26,880  5.32%  3/11/2022
One Westside and 10850 Pico(12)
5,646  —  
LIBOR + 1.70%
12/18/2023
(4)
Revolving Sunset Bronson Studios/ICON/CUE facility(13)
5,001  —  
LIBOR + 1.35%
3/1/2024
Element LA168,000  168,000  4.59%  11/6/2025
Hill7(14)
101,000  101,000  3.38%  11/6/2028
Sunset Gower Studios/Sunset Bronson Studios—  5,001  
LIBOR + 2.25%
3/4/2019
Total secured debt370,459  365,381  
Total unsecured and secured debt2,845,459  2,640,381  
Unamortized deferred financing costs/loan discounts(15)
(27,549) (16,546) 
TOTAL UNSECURED AND SECURED DEBT, NET$2,817,910  $2,623,835  
IN-SUBSTANCE DEFEASED DEBT(16)
$135,030  $138,223  4.47%  10/1/2022
JOINT VENTURE PARTNER DEBT (17)
$66,136  $66,136  4.50%  10/9/2028
_____________
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 December 31, 2019, which may be different than the interest rates as of December 31, 2018 for corresponding indebtedness.
2.The rate is based on the operating partnership’s leverage ratio. 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 December 31, 2019, 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 2.65% to 3.06% per annum through the use of two interest rate swaps. See Note 7 for details. Term loan A was paid off on October 3, 2019.
6.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 7 for details.
7.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 7 for details.
8.On February 27, 2019, the operating partnership completed an underwritten public offering of $350.0 million of senior notes, which were issued at a discount at 98.663% of par. On June 14, 2019, the operating partnership completed an additional underwritten public offering of $150.0 million of senior notes, which were issued at a premium at 104.544% of par. These notes are treated as a single series of securities with an aggregate principal amount of $500.0 million.
9.On October 3, 2019, the operating partnership completed an underwritten public offering of $400.0 million in senior notes due January 15, 2030. The notes were issued at 99.268% of par value, with a coupon of 3.25%. The net proceeds from the offering were used to repay the $300.0 million five-year term loan due April 1, 2020 and to pay down $80.0 million on the unsecured revolving credit facility.
10.Interest on the full loan amount has been effectively fixed at 3.71% per annum through use of an interest rate swap. See Note 7 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 has the ability to draw up to $414.6 million under the construction loan secured by the One Westside and 10850 Pico properties.
13.The Company has a total capacity of $235.0 million under the Sunset Bronson Studios/ICON/CUE revolving credit facility. This loan is secured by the Company’s Sunset Bronson Studios, ICON and CUE properties.
14.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.
15.Excludes deferred financing costs related to establishing the Company’s unsecured revolving credit facility and Sunset Bronson Studios/ICON/CUE revolving credit facility, which are reflected in prepaid and other assets, net line item in the Consolidated Balance Sheets. See Note 2 for details.
16.The Company owns 75% of the ownership interest in the joint venture that owns the One Westside and 10850 Pico properties. The full amount of the loan is separately presented on the balance sheet. Monthly debt service includes annual debt amortization payments based on a 10-year amortization schedule with a balloon payment at maturity.
17.This amount relates to debt due to Allianz, the Company’s partner in the joint venture that owns the Ferry Building property. The maturity date may be extended twice for an additional two-year term each.
Schedule of Maturities of Long-term Debt
The following table provides information regarding the Company’s future minimum principal payments due on the Company’s debt (before the impact of extension options, if applicable) as of December 31, 2019:
For the Year Ended December 31,Unsecured and Secured Debt  In-Substance Defeased Debt  
Joint Venture Partner Debt
2020$65,095  $3,323  $—  
2021632  3,494  —  
2022575,085  128,213  —  
2023165,646  —  —  
20245,001  —  —  
Thereafter2,034,000  —  66,136  
TOTAL$2,845,459  $135,030  $66,136  
Schedule 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:
December 31, 2019December 31, 2018
Outstanding borrowings
$75,000  $400,000  
Remaining borrowing capacity
525,000  200,000  
TOTAL BORROWING CAPACITY$600,000  $600,000  
Interest rate(1)
LIBOR + 1.05% to 1.50%
Annual facility fee rate(1)
0.15% or 0.30%
Contractual maturity date(2)
3/13/2022
_________________
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 December 31, 2019, no such election had been made. 
2.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 note purchase agreements, when considering the most restrictive terms:
Covenant RatioCovenant Level  Actual Performance
Total liabilities to total asset value
≤ 60%
35.4%  
Unsecured indebtedness to unencumbered asset value
≤ 60%
41.4%  
Adjusted EBITDA to fixed charges
≥ 1.5x
3.5x
Secured indebtedness to total asset value
≤ 45%
5.6%  
Unencumbered NOI to unsecured interest expense
≥ 2.0x
3.4x

The following table summarizes existing covenants and their covenant levels related to our registered senior notes:
Covenant Ratio(1)
Covenant Level  Actual Performance
Debt to total assets
≤ 60%
38.2%  
Total unencumbered assets to unsecured debt
  ≥ 150%
246.9%  
Consolidated income available for debt service to annual debt service charge
≥ 1.5x
3.8x
Secured debt to total assets
≤ 45%
6.0%  
_________________
1.The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the 3.95% Senior Notes and 4.65% Senior Notes based on the financial results as of December 31, 2019.
Reconciliation of Gross Interest Expense and Interest Expense
The following table represents a reconciliation from the gross interest expense to the amount on the interest expense line item in the Consolidated Statements of Operations:
Year Ended December 31,
201920182017
Gross interest expense(1)
$115,845  $92,017  $94,660  
Capitalized interest(16,258) (14,815) (10,655) 
Amortization of deferred financing costs and loan discount, net6,258  5,965  6,032  
INTEREST EXPENSE$105,845  $83,167  $90,037  
_________________
1.Includes interest on the Company’s debt and hedging activities, extinguishment costs related to paydowns in the term loans, and loan extinguishment costs of $744.0 thousand, $421.0 thousand and $1.1 million during the years ended December 31, 2019, 2018 and 2017, respectively.