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Debt | 12 Months Ended
--- | ---
Dec. 31, 2019
Debt Disclosure [Abstract] |
Debt | Debt Debt consisted of the following as of December 31, 2019 and 2018 (amounts in thousands):
|  |  |  |  | As of December 31, 2019 |
| Principal Balance as of December 31, 2019 |  | Principal Balance as of December 31, 2018 |  | Stated Rate |  | Effective Rate(1) |  | Maturity Date(2) |
Fixed rate mortgage debt |  |  |  |  |  |  |  |  |  |
Metro Center | $ | 89,650 |  |  | $ | 91,838 |  |  | 3.59 | % |  | 3.68 | % |  | 11/5/2024 |  |
10 Union Square | 50,000 |  |  | 50,000 |  |  | 3.70 | % |  | 3.97 | % |  | 4/1/2026 |  |
1542 Third Avenue | 30,000 |  |  | 30,000 |  |  | 4.29 | % |  | 4.53 | % |  | 5/1/2027 |  |
First Stamford Place(3) | 180,000 |  |  | 180,000 |  |  | 4.28 | % |  | 4.45 | % |  | 7/1/2027 |  |
1010 Third Avenue and 77 West 55th Street | 38,251 |  |  | 38,995 |  |  | 4.01 | % |  | 4.22 | % |  | 1/5/2028 |  |
10 Bank Street | 32,920 |  |  | 33,779 |  |  | 4.23 | % |  | 4.36 | % |  | 6/1/2032 |  |
383 Main Avenue | 30,000 |  |  | 30,000 |  |  | 4.44 | % |  | 4.55 | % |  | 6/30/2032 |  |
1333 Broadway | 160,000 |  |  | 160,000 |  |  | 4.21 | % |  | 4.29 | % |  | 2/5/2033 |  |
Total mortgage debt | 610,821 |  |  | 614,612 |  |  |  |  |  |  |  |
Senior unsecured notes - exchangeable | — |  |  | 250,000 |  |  | — | % |  | — | % |  | — |  |
Senior unsecured notes: (4) |  |  |  |  |  |  |  |  |  |
Series A | 100,000 |  |  | 100,000 |  |  | 3.93 | % |  | 3.96 | % |  | 3/27/2025 |  |
Series B | 125,000 |  |  | 125,000 |  |  | 4.09 | % |  | 4.12 | % |  | 3/27/2027 |  |
Series C | 125,000 |  |  | 125,000 |  |  | 4.18 | % |  | 4.21 | % |  | 3/27/2030 |  |
Series D | 115,000 |  |  | 115,000 |  |  | 4.08 | % |  | 4.11 | % |  | 1/22/2028 |  |
Series E | 160,000 |  |  | 160,000 |  |  | 4.26 | % |  | 4.27 | % |  | 3/22/2030 |  |
Series F | 175,000 |  |  | 175,000 |  |  | 4.44 | % |  | 4.45 | % |  | 3/22/2033 |  |
Unsecured revolving credit facility (4) | — |  |  | — |  |  | (5) |  | (5) |  | 8/29/2021 |  |
Unsecured term loan facility (4) | 265,000 |  |  | 265,000 |  |  | (6) |  | (6) |  | 8/29/2022 |  |
Total principal | 1,675,821 |  |  | 1,929,612 |  |  |  |  |  |  |  |
Unamortized discount | — |  |  | (1,647 | ) |  |  |  |  |  |  |
Deferred financing costs, net | (7,247 | ) |  | (9,032 | ) |  |  |  |  |  |  |
Total | $ | 1,668,574 |  |  | $ | 1,918,933 |  |  |  |  |  |  |  |
_____________
(1) | The effective rate is the yield as of December 31, 2019, 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) | Represents a $164 million mortgage loan bearing interest of 4.09% and a $16 million loan bearing interest at 6.25%.
(4) | At December 31, 2019, we were in compliance with all debt covenants.
(5) | At December 31, 2019, the unsecured revolving credit facility bears a floating rate at 30 day LIBOR plus 1.10%. The rate at December 31, 2019 was 2.86%.
(6) | The unsecured term loan facility bears a floating rate at 30 day LIBOR plus 1.20%. Pursuant to an interest rate swap agreement, the LIBOR rate is fixed at 2.1485% through maturity. The rate at December 31, 2019 was 3.35%.
Principal Payments Aggregate required principal payments at December 31, 2019 are as follows (amounts in thousands):
Year | Amortization |  | Maturities |  | Total
2020 | $ | 3,938 |  |  | $ | — |  |  | $ | 3,938 |
2021 | 4,090 |  |  | — |  |  | 4,090 |
2022 | 5,628 |  |  | 265,000 |  |  | 270,628 |
2023 | 7,876 |  |  | — |  |  | 7,876 |
2024 | 7,958 |  |  | 77,675 |  |  | 85,633 |
Thereafter | 25,910 |  |  | 1,277,746 |  |  | 1,303,656 |
Total principal maturities | $ | 55,400 |  |  | $ | 1,620,421 |  |  | $ | 1,675,821 |
Deferred Financing Costs Deferred financing costs, net, consisted of the following at December 31, 2019 and 2018 (amounts in thousands):
| 2019 |  | 2018
Financing costs | $ | 25,315 |  |  | $ | 25,315 |
Less: accumulated amortization | (13,863 | ) |  | (10,027 | )
Total deferred financing costs, net | $ | 11,452 |  |  | $ | 15,288 |
At December 31, 2019 and 2018, $4.2 million and $6.3 million, respectively, of net deferred financing costs associated with the unsecured revolving credit facility were included in deferred costs, net on the consolidated balance sheet. Amortization expense related to deferred financing costs was $3.8 million, $4.1 million, and $4.7 million, for the years ended December 31, 2019, 2018 and 2017, respectively, and was included in interest expense. Unsecured Revolving Credit and Term Loan Facility The senior unsecured revolving credit and term loan facility (the “Facility”) has a principal amount of up to $1.365 billion which consists of a $1.1 billion revolving credit facility and a $265.0 million term loan facility. We may request the Facility be increased through one or more increases in the revolving credit facility or one or more increases in the term loan facility or the addition of new pari passu term loan tranches, for a maximum aggregate principal amount not to exceed $1.75 billion. The initial maturity of the unsecured revolving credit facility is August 2021. 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 0.0625% and 0.075% of the then outstanding commitments under the unsecured revolving credit facility on the first and the second extensions, respectively. The term loan facility matures on August 2022. We may prepay the loans under the Facility at any time, subject to reimbursement of the lenders’ breakage and redeployment costs in the case of prepayment of Eurodollar Rate borrowings. The Facility includes the following financial covenants: (i) maximum leverage ratio of total indebtedness to total asset value (as defined in the agreement) 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 $1.2 billion 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 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, and (vi) the ratio of total unsecured indebtedness to unencumbered asset value will not exceed 60%. The Facility contains customary covenants, including limitations on liens, investment, distributions, debt, fundamental changes, and transactions with affiliates, and requires certain customary financial reports. The 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 agreement for the Facility). As of December 31, 2019, we were in compliance with the covenants under the Facility. Senior Unsecured Notes Exchangeable During August 2014, we issued $250.0 million principal amount of 2.625% Exchangeable Senior Notes (“2.625% Exchangeable Senior Notes”) due August 15, 2019. The 2.625% Exchangeable Senior Notes were exchangeable into cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at our election. On August 15, 2019, we settled the principal amount of the 2.625% Exchangeable Senior Notes in cash. For the years ended December 31, 2019, 2018 and 2017, total interest expense related to the 2.625% Exchangeable Senior Notes was $6.1 million, $9.9 million and $9.9 million, respectively, consisting of (i) contractual interest expense of $4.1 million, $6.6 million and $6.6 million, respectively, (ii) additional non-cash interest expense of $1.6 million, $2.7 million and $2.7 million, respectively, related to the accretion of the debt discount, and (iii) amortization of deferred financing costs of $0.4 million, $0.6 million and $0.6 million, respectively. Senior Unsecured Notes The terms of the Series A, B, C, D, E, and F senior notes agreements include customary covenants, including limitations on liens, investment, distributions, debt, fundamental changes, and transactions with affiliates and require certain customary financial reports. It also requires compliance with financial ratios 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, and a maximum unsecured leverage ratio. As of December 31, 2019, we were in compliance with the covenants under the outstanding Senior Unsecured 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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