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Debt (Tables)
 6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Schedule of long-term debt instruments
The following table sets forth information with respect to the Company’s outstanding indebtedness:
June 30, 2020December 31, 2019
Interest Rate(1)
Contractual Maturity Date
UNSECURED AND SECURED DEBT
Unsecured debt
Unsecured revolving credit facility(2)(3)
$200,000  $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 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(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 debt2,600,000  2,475,000  
Secured debt
Met Park North(9)
64,500  64,500  
LIBOR + 1.55%
8/1/2020
10950 Washington(10)
26,019  26,312  5.32%3/11/2022
One Westside and 10850 Pico(11)
33,830  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 LA168,000  168,000  4.59%11/6/2025
Hill7(13)
101,000  101,000  3.38%11/6/2028
Total secured debt398,350  370,459  
Total unsecured and secured debt2,998,350  2,845,459  
Unamortized deferred financing costs and loan discounts/premiums(14)
(24,983) (27,549) 
TOTAL UNSECURED AND SECURED DEBT, NET$2,973,367  $2,817,910  
IN-SUBSTANCE DEFEASED DEBT(15)
$133,387  $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 June 30, 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 June 30, 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. On July 31, 2020, the Company paid off the principal outstanding of $64.5 million on the Met Park North mortgage loan.
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 June 30, 2020:
YearUnsecured and Secured DebtIn-substance Defeased DebtJoint Venture Partner Debt
Remaining 2020$64,802  $1,681  $—  
2021632  3,494  —  
2022700,085  128,212  —  
2023193,830  —  —  
20245,001  —  —  
Thereafter2,034,000  —  66,136  
TOTAL
$2,998,350  $133,387  $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:
June 30, 2020December 31, 2019
Outstanding borrowings$200,000  $75,000  
Remaining borrowing capacity400,000  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 June 30, 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 RatioCovenant LevelActual Performance
Total liabilities to total asset value
≤ 60%
38.1%
Unsecured indebtedness to unencumbered asset value
≤ 60%
45.5%
Adjusted EBITDA to fixed charges
≥ 1.5x
3.5x
Secured indebtedness to total asset value
≤ 45%
6.1%
Unencumbered NOI to unsecured interest expense
≥ 2.0x
3.2x

The following table summarizes existing covenants and their covenant levels related to the registered senior notes:
Covenant Ratio(1)
Covenant LevelActual Performance
Debt to total assets
≤ 60%
39.4%
Total unencumbered assets to unsecured debt
 ≥ 150%
239.6%
Consolidated income available for debt service to annual debt service charge
≥ 1.5x
4.0x
Secured debt to total assets
≤ 45%
6.3%
_________________
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 June 30, 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 June 30,Six Months Ended June 30,
2020201920202019
Gross interest expense(1)
$31,165  $28,980  $61,451  $56,445  
Capitalized interest(4,479) (3,871) (9,593) (8,577) 
Amortization of deferred financing costs and loan discounts/premiums1,244  1,443  2,489  3,034  
INTEREST EXPENSE
$27,930  $26,552  $54,347  $50,902  
_________________
1.Includes interest on the Company’s debt and hedging activities and extinguishment costs related to paydowns in the term loans.