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Debt | 3 Months Ended
--- | ---
Mar. 31, 2015
Debt Disclosure [Abstract] |
Debt | Debt Debt consisted of the following as of March 31, 2015 and December 31, 2014 (amounts in thousands):
|  |  |  |  | As of March 31, 2015 |
| Principal Balance as of March 31, 2015 |  | Principal Balance as of December 31, 2014 |  | Stated Rate |  | Effective Rate(1) |  | Maturity Date(2) |
Mortgage debt collateralized by: |  |  |  |  |  |  |  |  |  |
Fixed rate mortgage debt |  |  |  |  |  |  |  |  |  |
10 Union Square | $ | 20,551 |  |  | $ | 20,641 |  |  | 6.00 | % |  | 6.67 | % |  | 5/1/2017 |
10 Bank Street | 32,692 |  |  | 32,847 |  |  | 5.72 | % |  | 6.21 | % |  | 6/1/2017 |
1542 Third Avenue | 18,525 |  |  | 18,628 |  |  | 5.90 | % |  | 6.50 | % |  | 6/1/2017 |
First Stamford Place | 241,384 |  |  | 242,294 |  |  | 5.65 | % |  | 6.14 | % |  | 7/5/2017 |
1010 Third Avenue and 77 West 55th Street | 27,465 |  |  | 27,595 |  |  | 5.69 | % |  | 6.36 | % |  | 7/5/2017 |
383 Main Avenue | 29,709 |  |  | 29,852 |  |  | 5.59 | % |  | 5.97 | % |  | 7/5/2017 |
1333 Broadway | 69,348 |  |  | 69,575 |  |  | 6.32 | % |  | 3.80 | % |  | 1/5/2018 |
1400 Broadway |  |  |  |  |  |  |  |  |  |
(first lien mortgage loan) | 69,455 |  |  | 69,689 |  |  | 6.12 | % |  | 3.14 | % |  | 2/5/2018 |
(second lien mortgage loan) | 9,753 |  |  | 9,803 |  |  | 3.35 | % |  | 3.35 | % |  | 2/5/2018 |
112 West 34th Street |  |  |  |  |  |  |  |  |  |
(first lien mortgage loan) | 77,221 |  |  | 77,484 |  |  | 6.01 | % |  | 3.08 | % |  | 4/5/2018 |
(second lien mortgage loan) | 9,733 |  |  | 9,763 |  |  | 6.56 | % |  | 3.36 | % |  | 4/5/2018 |
1350 Broadway | 38,765 |  |  | 38,900 |  |  | 5.87 | % |  | 3.78 | % |  | 4/5/2018 |
Metro Center | 99,378 |  |  | 99,845 |  |  | 3.59 | % |  | 3.71 | % |  | 11/5/2024 |
Total fixed rate mortgage debt | 743,979 |  |  | 746,916 |  |  |  |  |  |  |  |
Floating rate mortgage debt |  |  |  |  |  |  |  |  |  |
One Grand Central Place | 91,000 |  |  | 91,000 |  |  | (3) |  | (3) |  | 11/5/2017 |
1359 Broadway(4) | — |  |  | 44,146 |  |  |  |  |  |  |  |
Total floating rate mortgage debt | 91,000 |  |  | 135,146 |  |  |  |  |  |  |  |
Total mortgage debt | 834,979 |  |  | 882,062 |  |  |  |  |  |  |  |
Senior unsecured notes - exchangeable | 250,000 |  |  | 250,000 |  |  | 2.63 | % |  | 3.93 | % |  | 8/15/2019 |
Senior unsecured notes |  |  |  |  |  |  |  |  |  |  |  |
Series A | 100,000 |  |  | — |  |  | 3.93 | % |  | 3.93 | % |  | 3/27/2025 |
Series B | 125,000 |  |  | — |  |  | 4.09 | % |  | 4.09 | % |  | 3/27/2027 |
Series C | 125,000 |  |  | — |  |  | 4.18 | % |  | 4.18 | % |  | 3/27/2030 |
Unsecured revolving credit facility | 165,000 |  |  | — |  |  | (5) |  | (5) |  | 1/23/2019 |
Secured revolving credit facility | — |  |  | 170,000 |  |  | (5) |  | (5) |  |  |
Secured term credit facility | — |  |  | 300,000 |  |  | (5) |  | (5) |  |  |
Total principal | 1,599,979 |  |  | 1,602,062 |  |  |  |  |  |  |  |
Unamortized premiums, net of unamortized discount | 8,388 |  |  | 9,590 |  |  |  |  |  |  |  |
Total | $ | 1,608,367 |  |  | $ | 1,611,652 |  |  |  |  |  |  |  |
______________
(1) | The effective rate is the yield as of March 31, 2015, including the effects of debt issuance costs.
(2) | Pre-payment is generally allowed for each loan upon payment of a customary pre-payment penalty.
(3) | Floating at 30 day LIBOR plus 1.35%. The rate at March 31, 2015 was 1.53%.
(4) | The loan was repaid in March 2015 with a portion of the proceeds from the issuance of senior unsecured notes.
(5) | The secured revolving and term credit facility was terminated on January 23, 2015 concurrent with entering into the unsecured revolving credit facility. At March 31, 2015 the unsecured revolving credit facility bears a floating rate at 30 day LIBOR plus 1.15%. The rate at March 31, 2015 was 1.33%.
Principal Payments Aggregate required principal payments at March 31, 2015 are as follows (amounts in thousands):
Year | Amortization |  | Maturities |  | Total
2015 | $ | 8,833 |  |  | $ | — |  |  | $ | 8,833 |
2016 | 12,387 |  |  | — |  |  | 12,387 |
2017 | 10,070 |  |  | 446,761 |  |  | 456,831 |
2018 | 2,880 |  |  | 262,210 |  |  | 265,090 |
2019 | 2,188 |  |  | 415,000 |  |  | 417,188 |
2020 and thereafter | 11,975 |  |  | 427,675 |  |  | 439,650 |
Total | $ | 48,333 |  |  | $ | 1,551,646 |  |  | $ | 1,599,979 |
Unsecured Revolving Credit Facility On January 23, 2015, we entered into an unsecured revolving credit agreement, which is referred to herein as the “unsecured revolving credit facility,” with Bank of America, Merrill Lynch, Goldman Sachs and the other lenders party thereto. Merrill Lynch acted as joint lead arranger; Bank of America acted as administrative agent; and Goldman Sachs acted as syndication agent and joint lead arranger. Concurrently with entering into the unsecured revolving credit facility, on January 23, 2015, we terminated our secured revolving and term credit facility and wrote off $1.3 million of deferred financing costs. In connection with the termination of the secured revolving and term credit facility, all of the guarantors thereunder were released from their guaranty obligations, all liens created thereby were terminated, and all collateral pledged thereunder was released. The unsecured revolving credit facility is comprised of a revolving credit facility in the maximum original principal amount of $800.0 million. The unsecured revolving credit facility contains an accordion feature that would allow us to increase the maximum aggregate principal amount to $1.25 billion under specified circumstances. As of March 31, 2015, the unsecured revolving credit facility had an outstanding balance of $165.0 million. Amounts outstanding under the unsecured revolving credit facility bears interest at a floating rate equal to, at our election, (x) a Eurodollar rate, plus a spread that range from 0.875% to 1.600% depending upon our leverage ratio and credit rating; or (y) a base rate, plus a spread that range from 0.000% to 0.600% depending upon our leverage ratio and credit rating. In addition, the unsecured revolving credit facility permits us to borrow at competitive bid rates determined in accordance with the procedures described in the unsecured revolving credit facility. We paid certain customary fees and expense reimbursements. The unsecured revolving credit facility initial maturity is January 2019. We have the option to extend the initial term for up to two additional 6-month periods, subject to certain conditions, including the payment of an extension fee equal to 0.075% of the then outstanding commitments under the unsecured revolving credit facility. The unsecured revolving credit facility includes the following financial covenants: (i) maximum leverage ratio of total indebtedness to total asset value of the loan parties and their consolidated subsidiaries will not exceed 60%, (ii) consolidated secured indebtedness will not exceed 40% of total asset value, (iii) tangible net worth will not be less than $745.4 million plus 75% of net equity proceeds received by us (other than proceeds received within ninety (90) days after the redemption, retirement or repurchase of ownership or equity interests in us up to the amount paid by us in connection with such redemption, retirement or repurchase, where, the net effect is that we shall not have increased our net worth as a result of any such proceeds), (iv) adjusted EBITDA (as defined in the unsecured revolving credit facility) to consolidated fixed charges will not be less than 1.50 x, (v) the aggregate net operating income with respect to all unencumbered eligible properties to the portion of interest expense attributable to unsecured indebtedness will not be less than 1.75 x, (vi) the ratio of total unsecured indebtedness to unencumbered asset value will not exceed 60%, and (vii) consolidated secured recourse indebtedness will not exceed 10% of total asset value (provided, however, this covenant shall not apply at any time after we achieve a debt ratings from at least two of Moody’s, S&P and Fitch, and such debt ratings are Baa3 or better (in the case of a rating by Moody’s) or BBB- or better (in the case of a rating by S&P or Fitch)). The unsecured revolving credit facility contains customary covenants, including limitations on liens, investment, debt, fundamental changes, and transactions with affiliates, and will require certain customary financial reports. The unsecured revolving credit facility contains customary events of default (subject in certain cases to specified cure periods), including but not limited to non-payment, breach of covenants, representations or warranties, cross defaults, bankruptcy or other insolvency events, judgments, ERISA events, invalidity of loan documents, loss of real estate investment trust qualification, and occurrence of a change of control (defined in the definitive documentation for the unsecured credit facility). As of March 31, 2015, we were in compliance with the covenants under the unsecured revolving credit facility. Secured Revolving and Term Credit Facility As of December 31, 2014, the secured revolving and term credit facility had an outstanding balance of $470.0 million. The secured revolving and term credit facility was terminated on January 23, 2015 concurrent with entering into the unsecured revolving credit facility described above. Senior Unsecured Notes Exchangeable Senior Notes For the three months ended March 31, 2015, total interest expense related to the 2.625% Exchangeable Senior Notes was $2.4 million consisting of (i) the contractual interest expense of $1.6 million, (ii) the additional non-cash interest expense of $0.7 million related to the accretion of the debt discount, and (iii) the amortization of deferred financing costs of $0.1 million. Series A, Series B, and Series C Senior Notes During March 2015, we issued and sold an aggregate principal amount of $350 million senior unsecured notes consisting of $100 million of 3.93% Series A Senior Notes due 2025, $125 million of 4.09% Series B Senior Notes due 2027, and $125 million of 4.18% Series C Senior Notes due 2030. Interest on the Series A, B and C Senior Notes is payable quarterly, beginning on June 27, 2015. The terms of the Series A, B and C Senior Notes agreement include customary covenants, including limitations on liens, investment, debt, fundamental changes, and transactions with affiliates and will require certain customary financial reports. It also requires compliance with financial ratios consistent with our unsecured revolving credit facility including a maximum leverage ratio, a maximum secured leverage ratio, a minimum amount of tangible net worth, a minimum fixed charge coverage ratio, a minimum unencumbered interest coverage ratio, a maximum unsecured leverage ratio and a maximum amount of secured recourse indebtedness. The proceeds from the issuance of the Series A, B and C Senior Notes were used to repay outstanding mortgage debt, reduce amounts outstanding under the unsecured revolving credit facility and for other general corporate purposes. As of March 31, 2015, we were in compliance with the covenants under the Series A, B and C Senior Notes.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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