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Debt | 9 Months Ended
--- | ---
Sep. 30, 2015
Debt [Abstract] |
Debt | 8. Debt Long-term Debt and Capital and Financing Lease Obligations Long-term debt and capital and financing lease obligations consist of the following (dollars in thousands):
|  | September 30, 2015 |  |  | December 31, 2014 |
Mortgage notes payable due 2016 through 2047; weighted average interest rate of 4.41% for the nine months ended September 30, 2015, including net debt premium of $16.6 million and $59.6 million at September 30, 2015 and December 31, 2014, respectively (weighted average interest rate of 4.84% in 2014) |  | $ | 3,185,827 |  |  | $ | 3,105,410 |
Capital and financing lease obligations payable through 2031; weighted average interest rate of 8.15% for the nine months ended September 30, 2015 (weighted average interest rate of 8.57% in 2014) |  |  | 2,585,969 |  |  |  | 2,649,226 |
Convertible notes payable in aggregate principal amount of $316.3 million, less debt discount of $35.2 million and $43.9 million at September 30, 2015 and December 31, 2014, respectively, interest at 2.75% per annum, due June 2018 |  |  | 281,063 |  |  |  | 272,345 |
Construction financing due 2017 through 2019; weighted average interest rate of 5.94% for the nine months ended September 30, 2015 (weighted average interest rate of 4.90% in 2014) |  |  | 37,450 |  |  |  | 50,118 |
Notes payable issued to finance insurance premiums, weighted average interest rate of 2.82% for the nine months ended September 30, 2015 (weighted average interest rate of 2.82% in 2014), due 2015 |  |  | 2,560 |  |  |  | 22,586 |
Other notes payable, weighted average interest rate of 5.53% for the nine months ended September 30, 2015 (weighted average interest rate of 4.75% in 2014) and maturity dates ranging from 2015 to 2020 |  |  | 82,236 |  |  |  | 66,271 |
Total |  |  | 6,175,105 |  |  |  | 6,165,956 |
Less current portion of long-term debt and capital and financing lease obligations |  |  | 150,380 |  |  |  | 272,265 |
Total long-term debt and capital and financing lease obligations |  | $ | 6,024,725 |  |  | $ | 5,893,691 |
Credit Facilities On December 19, 2014, the Company entered into a Fourth Amended and Restated Credit Agreement with General Electric Capital Corporation, as administrative agent, lender and swingline lender, and the other lenders from time to time parties thereto. The amended credit agreement amended and restated in its entirety the Company's previously existing Third Amended and Restated Credit Agreement dated as of September 20, 2013, which provided a total commitment amount of $250.0 million. The amended agreement provides for a total commitment amount of $500.0 million, comprised of a $100.0 million term loan drawn at closing and a $400.0 million revolving credit facility (with a $50.0 million sublimit for letters of credit and a $50.0 million swingline feature to permit same day borrowing) and an option to increase the revolving credit facility by an additional $250.0 million, subject to obtaining commitments for the amount of such increase from acceptable lenders. In addition, the amended credit agreement extended the maturity date from March 31, 2018 to January 3, 2020 and decreased the interest rate payable on drawn amounts and the fee payable on the unused portion of the facility. Amounts drawn under the facility will continue to bear interest at 90-day LIBOR plus an applicable margin; however, the amended agreement reduces the applicable margin from a range of 3.25% to 4.25% to a range of 2.50% to 3.50%. The applicable margin varies based on the percentage of the total commitment drawn, with a 2.50% margin at utilization equal to or lower than 35%, a 3.25% margin at utilization greater than 35% but less than or equal to 50%, and a 3.50% margin at utilization greater than 50%. The amended agreement also eliminates the minimum 0.5% LIBOR rate included in the prior agreement. Amounts drawn on the facility may be used to finance acquisitions, fund working capital and capital expenditures and for other general corporate purposes. The credit facility will continue to be secured by first priority mortgages on certain of the Company's communities. In addition, the amended agreement permits the Company to pledge the equity interests in subsidiaries that own other communities (rather than mortgaging such communities), provided that loan availability from pledged assets cannot exceed 10% of loan availability from mortgaged assets. The availability under the line will vary from time to time as it is based on borrowing base calculations related to the appraised value and performance of the communities securing the facility. The amended credit agreement contains typical affirmative and negative covenants, including financial covenants with respect to minimum consolidated fixed charge coverage and minimum consolidated tangible net worth. A violation of any of these covenants could result in a default under the credit agreement, which would result in termination of all commitments under the credit agreement and all amounts owing under the amended credit agreement and certain other loan agreements becoming immediately due and payable. As of September 30, 2015, the outstanding balance under this credit facility was $310.0 million. The Company also had secured and unsecured letter of credit facilities of up to $115.6 million in the aggregate as of September 30, 2015. Letters of credit totaling $83.9 million had been issued under these facilities as of that date. Financings On March 31, 2015, the Company obtained a $63.0 million loan, secured by first mortgages on six communities. The loan bears interest at a variable rate equal to 90-day LIBOR plus a margin of 325 basis points and matures on April 1, 2020. On April 30, 2015, the Company obtained a $65.3 million loan, secured by first mortgages on six communities. The loan bears interest at a fixed rate of 3.98% and matures on May 1, 2027. On August 27, 2015, the Company obtained $226.4 million in loans secured by first mortgages on 21 communities. The mortgage facility has a ten year term and 75% of it bears interest at a variable rate of 30-day LIBOR plus a margin of 221 basis points and the remaining 25% bears interest at a fixed rate of 4.80%. Proceeds of the loans were used to refinance $209.9 million of fixed rate mortgage debt on 28 communities that was scheduled to mature in September 2017. In connection with the transaction, the Company paid a prepayment penalty of $17.9 million, of which $10.4 million was recorded against the existing debt premium, $6.3 million was recorded as a debt discount for the new loans, and $1.2 million was recorded as an extinguishment cost for the seven communities that became unencumbered. On September 15, 2015, the Company obtained $140.4 million in loans secured by first mortgages on 18 communities. The mortgage facility has a seven year term and bears interest at a variable rate of one-month LIBOR plus a margin of 223 basis points. Proceeds of the loans were used to refinance $122.3 million of fixed rate mortgage debt that was scheduled to mature in May 2018. In connection with the transaction, the Company paid a prepayment penalty of $13.6 million, of which $7.6 million was recorded against the existing debt premium and $6.0 million was recorded as a debt discount for the new loans. The financings that occurred during the three months ended September 30, 2015 were accounted for as debt modifications and $5.5 million of debt modification costs were recorded on the condensed consolidated statement of operations for that period. As of September 30, 2015, the Company is in compliance with the financial covenants of its outstanding debt and lease agreements.

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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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