9. Debt Obligations

Bank Borrowings. During 2018, we amended and restated our unsecured credit agreement to replace the previous unsecured credit agreement, prior to its expiration on October 14, 2018. The amended credit agreement maintains the $600,000,000 aggregate commitment of the lenders under the prior agreement and provides for the opportunity to increase the commitment size of the credit agreement up to a total of $1,000,000,000. The amended credit agreement extends the maturity of the credit agreement to June 27, 2022 and provides for a one-year extension option at our discretion, subject to customary conditions. Additionally, the amended credit agreement decreases the interest rate margins and converts from the payment of unused commitment fees to a facility fee. Based on our leverage at December 31, 2018, the facility provides for interest annually at LIBOR plus 115 basis points and a facility fee of 20 basis points. At December 31, 2018 and 2017 we were in compliance with all covenants.

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.

Senior Unsecured Notes. During 2017, we amended our shelf agreement with affiliates and managed accounts of Prudential Investment Management, Inc. (“Prudential”) to increase our shelf commitment to $337,500,000.

The following table sets forth information regarding debt obligations by component as of December 31, 2018 and 2017 (dollar amounts in thousands):


	Applicable			Available				Available
	Interest	Outstanding		for		Outstanding		for
Debt Obligations	Rate (1)	Balance		Borrowing		Balance		Borrowing
Bank borrowings (2)	3.69%	$	112,000	$	488,000	$	96,500	$	503,500
Senior unsecured notes, net of debt issue costs (3)	4.50%		533,029		93,833		571,002		63,667
Total	4.36%	$	645,029	$	581,833	$	667,502	$	567,167

(1)

Represents weighted average of interest rate as of December 31, 2018.

(2)

Subsequent to December 31, 2018, we borrowed $26,400, net, under our unsecured revolving line of credit, accordingly we have $138,400 outstanding balance and $461,600 available for borrowing.

(3)

Subsequent to December 31, 2018, we paid $4,167 in regular scheduled principal payments, accordingly we have $528,862 outstanding and $98,000 available under our senior unsecured notes.

Our borrowings and repayments for the years ended December 31, 2018, 2017 and 2016 are as follows (in thousands):


	2018				2017					2016
Debt Obligations		Borrowings		Repayments	Borrowings			Repayments			Borrowings			Repayments
Bank borrowings	$	116,200	$	(100,700)	$	113,000		$	(123,600)	$	123,600		$	(137,000)
Senior unsecured notes		—		(38,166)		100,000	(1)		(31,167)		77,500	(2)		(26,667)
Total	$	116,200	$	(138,866)	$	213,000		$	(154,767)	$	201,100		$	(163,667)

(1)

During 2017, we sold 15-year senior unsecured notes in the aggregate amount of $100,000 to a group of investors, which included Prudential, in a private placement transaction. The notes bear interest at an annual rate of 4.5%, have scheduled principal payments and mature on February 16, 2032.

(2)

During the year ended December 31, 2016, we sold 10-year senior unsecured term notes in the amount of $37,500 to Prudential. The notes bear interest at an annual fixed rate of 4.15%, have scheduled principal payments and will mature in 2028. Additionally, we sold 10-year senior unsecured notes in the amount of $40,000 to affiliated insurance company investment advisory clients of AIG Asset Management (U.S.) LLC. The notes bear interest at a coupon of 3.99%, have scheduled principal payments and will mature in 2031.

Scheduled Principal Payments. The following table represents our long-term contractual obligations (scheduled principal payments and amounts due at maturity) as of December 31, 2018, and excludes the effects of interest and debt issue costs (in thousands):


	Total			2019		2020		2021		2022		2023		Thereafter
Bank borrowings	$	112,000	(1)	$	—	$	—	$	—	$	112,000	$	—	$	—
Senior unsecured notes		533,967	(2)		33,667		40,160		47,160		48,160		49,160		315,660
Total	$	645,967		$	33,667	$	40,160	$	47,160	$	160,160	$	49,160	$	315,660

(1)

Subsequent to December 31, 2018, we borrowed $26,400, net under our unsecured revolving line of credit. Accordingly, we have $138,400 outstanding and $461,600 available under our unsecured revolving line of credit.

(2)

Subsequent to December 31, 2018, we paid $4,167 in regular scheduled principal payments, accordingly we have $528,862 outstanding and $98,000 available under our senior unsecured notes.