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v3.20.1

Debt (Tables) | 3 Months Ended
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Mar. 31, 2020
Debt Disclosure [Abstract] |
Schedule of long-term debt instruments | The following table sets forth information with respect to the Company’s outstanding indebtedness:
| March 31, 2020 |  | December 31, 2019 |  | Interest Rate(1) |  | Contractual Maturity Date |  |
UNSECURED AND SECURED DEBT |  |  |  |  |  |  |  |  |
Unsecured debt |  |  |  |  |  |  |  |  |
Unsecured revolving credit facility(2)(3) | $ | 490,000 |  |  | $ | 75,000 |  |  | LIBOR + 1.05% to 1.50% |  | 3/13/2022 | (4) |  |
Term loan B(2)(5) | 350,000 |  |  | 350,000 |  |  | LIBOR + 1.20% to 1.70% |  | 4/1/2022 |  |
Term loan D(2)(6) | 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 B notes | 259,000 |  |  | 259,000 |  |  | 4.69% |  | 12/16/2025 |  |
Series C notes | 56,000 |  |  | 56,000 |  |  | 4.79% |  | 12/16/2027 |  |
Series D notes | 150,000 |  |  | 150,000 |  |  | 3.98% |  | 7/6/2026 |  |
Series E notes | 50,000 |  |  | 50,000 |  |  | 3.66% |  | 9/15/2023 |  |
3.95% Registered senior notes | 400,000 |  |  | 400,000 |  |  | 3.95% |  | 11/1/2027 |  |
4.65% Registered senior notes(7) | 500,000 |  |  | 500,000 |  |  | 4.65% |  | 4/1/2029 |  |
3.25% Registered senior notes(8) | 400,000 |  |  | 400,000 |  |  | 3.25% |  | 1/15/2030 |  |
Total unsecured debt | 2,890,000 |  |  | 2,475,000 |  |  |  |  |  |  |
Secured debt |  |  |  |  |  |  |  |  |
Met Park North(9) | 64,500 |  |  | 64,500 |  |  | LIBOR + 1.55% |  | 8/1/2020 |  |
10950 Washington(10) | 26,165 |  |  | 26,312 |  |  | 5.32% |  | 3/11/2022 |  |
One Westside and 10850 Pico(11) | 5,686 |  |  | 5,646 |  |  | LIBOR + 1.70% |  | 12/18/2023 | (4) |  |
Revolving Sunset Bronson Studios/ICON/CUE facility(12) | 5,001 |  |  | 5,001 |  |  | LIBOR + 1.35% |  | 3/1/2024 |  |
Element LA | 168,000 |  |  | 168,000 |  |  | 4.59% |  | 11/6/2025 |  |
Hill7(13) | 101,000 |  |  | 101,000 |  |  | 3.38% |  | 11/6/2028 |  |
Total secured debt | 370,352 |  |  | 370,459 |  |  |  |  |  |  |
Total unsecured and secured debt | 3,260,352 |  |  | 2,845,459 |  |  |  |  |  |  |
Unamortized deferred financing costs and loan discounts/premiums(14) | (26,259) |  |  | (27,549) |  |  |  |  |  |  |
TOTAL UNSECURED AND SECURED DEBT, NET | $ | 3,234,093 |  |  | $ | 2,817,910 |  |  |  |  |  |  |
IN-SUBSTANCE DEFEASED DEBT(15) | $ | 134,205 |  |  | $ | 135,030 |  |  | 4.47% |  | 10/1/2022 |  |
JOINT VENTURE PARTNER DEBT(16) | $ | 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 March 31, 2020, which may be different than the interest rates as of December 31, 2019 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 March 31, 2020, 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 2.96% to 3.46% per annum through the use of two interest rate swaps. See Note 9 for details. 6.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 9 for details. 7.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. 8.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 a discount at 99.268% of par value, with a coupon of 3.25%. 9.Interest on the full loan amount has been effectively fixed at 3.71% per annum through use of an interest rate swap. See Note 9 for details. 10.Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity. 11.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. 12.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. 13.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. 14.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 7 for details. 15.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. 16.This amount relates to debt due to Allianz U.S. Private REIT LP (“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 minimum future principal payments due on the Company’s debt (before the impact of extension options, if applicable) as of March 31, 2020:
Year |  | Unsecured and Secured Debt |  | In-substance Defeased Debt |  | Joint Venture Partner Debt
Remaining 2020 |  | $ | 64,947 |  |  | $ | 2,498 |  |  | $ | — |
2021 |  | 632 |  |  | 3,494 |  |  | — |
2022 |  | 990,085 |  |  | 128,213 |  |  | — |
2023 |  | 165,686 |  |  | — |  |  | — |
2024 |  | 5,001 |  |  | — |  |  | — |
Thereafter |  | 2,034,001 |  |  | — |  |  | 66,136 |
TOTAL |  | $ | 3,260,352 |  |  | $ | 134,205 |  |  | $ | 66,136 |
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:
| March 31, 2020 |  | December 31, 2019
Outstanding borrowings | $ | 490,000 |  |  | $ | 75,000 |
Remaining borrowing capacity | 110,000 |  |  | 525,000 |
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 March 31, 2020, 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 the unsecured revolving credit facility, term loans, and note purchase agreements, when considering the most restrictive terms:
Covenant Ratio |  | Covenant Level |  | Actual Performance
Total liabilities to total asset value |  | ≤ 60% |  | 36.2%
Unsecured indebtedness to unencumbered asset value |  | ≤ 60% |  | 44.2%
Adjusted EBITDA to fixed charges |  | ≥ 1.5x |  | 3.5x
Secured indebtedness to total asset value |  | ≤ 45% |  | 5.3%
Unencumbered NOI to unsecured interest expense |  | ≥ 2.0x |  | 3.3x
The following table summarizes existing covenants and their covenant levels related to the registered senior notes:
Covenant Ratio(1) |  | Covenant Level |  | Actual Performance
Debt to total assets |  | ≤ 60% |  | 43.1%
Total unencumbered assets to unsecured debt |  | ≥ 150% |  | 214.1%
Consolidated income available for debt service to annual debt service charge |  | ≥ 1.5x |  | 3.9x
Secured debt to total assets |  | ≤ 40% |  | 5.9%
_________________ 1.The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the 3.25% Senior Notes, 3.95% Senior Notes and 4.65% Senior Notes based on the financial results as of March 31, 2020.
Schedule of interest expense | 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 March 31, |  |  |  |  |  |
| 2020 |  | 2019 |  |  |  |
Gross interest expense(1) | $ | 30,287 |  |  | $ | 27,465 |  |  |  |  |
Capitalized interest | (5,115) |  |  | (4,706) |  |  |  |  |
Amortization of deferred financing costs and loan discounts/premiums | 1,245 |  |  | 1,591 |  |  |  |  |
INTEREST EXPENSE | $ | 26,417 |  |  | $ | 24,350 |  |  |  |  |
_________________ 1.Includes interest on the Company’s debt and hedging activities and extinguishment costs related to paydowns in the term loans.

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