9. Debt Obligations

Bank Borrowings. During the three months ended December 31, 2014, we amended our Unsecured Credit Agreement increasing the commitment to $400,000,000 with the opportunity to increase the credit amount up to a total of $600,000,000. Additionally, the drawn pricing was decreased by 25 basis points and the maturity of the facility was extended to October 14, 2018. The amendment also provides for a one‑year extension option at our discretion, subject to customary conditions. Based on our leverage ratios at December 31, 2014, the amended facility provides for interest annually at LIBOR plus 115 basis points and the unused commitment fee was 25 basis points.

Financial covenants contained in the Unsecured Credit Agreement, which are measured quarterly, require us to maintain, among other things:

(i)

a ratio of total indebtedness to total asset value not greater than 0.5 to 1.0;

(ii)

a ratio of secured debt to total asset value not greater than 0.35 to 1.0;

(iii)

a ratio of unsecured debt to the value of the unencumbered asset value not greater than 0.6 to 1.0; and

(iv)

a ratio of EBITDA, as calculated in the Unsecured Credit Agreement, to fixed charges not less than 1.50 to 1.0.

During 2014, we borrowed $37,500,000 and repaid $58,500,000 under our unsecured revolving line of credits. At December 31, 2014, we had no outstanding borrowings under our Unsecured Credit Agreement and $400,000,000 available for borrowing. Subsequent December 31, 2014, we borrowed $18,000,000 under our unsecured revolving line of credit. Accordingly, we have $18,000,000 outstanding and $382,000,000 available for borrowing. At December 31, 2014 and 2013, we were in compliance with all covenants.

Senior Unsecured Notes. At December 31, 2014 and 2013, we had $281,633,000 and $255,800,000, respectively, outstanding under our Senior Unsecured Notes with a weighted average interest rate of 4.81% and 4.85%, respectively. During 2014, we sold $30,000,000 senior unsecured term notes to affiliates and managed accounts of Prudential Investment Management, Inc. (or individually and collectively Prudential) under our Amended and Restated Note Purchase and Private Shelf agreement. These notes bear interest at 4.5% and will mature on July 31, 2026. We used the proceeds to pay down our unsecured revolving line of credit. As a result of the sale of $30,000,000 senior unsecured term notes, our Amended and Restated Note Purchase and Private Shelf agreement has been exhausted with no more availability. Also, during 2014, we paid $4,167,000 in regularly scheduled principal payments.

During 2013, we sold to Prudential $70,000,000 aggregate principal amount of 3.99% senior unsecured term notes fully amortizing to maturity on November 20, 2021. During 2012, we sold 12‑year senior unsecured notes in the aggregate amount of $85,800,000 to a group of institutional investors in a private placement transaction. The notes bear interest at 5.0% and mature on July 19, 2024. Additionally during 2012, we sold to Prudential $50,000,000 aggregate principal amount of 4.80% senior unsecured term notes fully amortizing to maturity on July 20, 2021.

Bonds Payable. During 2014, we paid off a $1,400,000 multifamily tax‑exempt revenue bond that was secured by five assisted living properties in Washington. These bonds bore interest at a variable rate that reset weekly. During 2014 and 2013, we paid $635,000 and $600,000, respectively, in regularly scheduled principal payments.

Scheduled Principal Payments. The following table represents our long term contractual obligations (scheduled principal payments and amounts due at maturity) as of December 31, 2014, and excludes the effects of interest (in thousands):


	Total		2015		2016		2017		2018		2019		Thereafter
Bank borrowings	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Senior unsecured notes		281,633		29,166		26,667		26,167		28,167		25,666		145,800
	$	281,633	$	29,166	$	26,667	$	26,167	$	28,167	$	25,666	$	145,800