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Debt Obligations | 12 Months Ended
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Dec. 31, 2019
Debt Obligations |
Debt Obligations | 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, 2019, the facility provides for interest annually at LIBOR plus 115 basis points and a facility fee of 20 basis points. At December 31, 2019 and 2018 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. We have a $337,500,000 shelf agreement with affiliates and managed accounts of PGIM, Inc. (“Prudential”), with availability of $21,500,000 at December 31, 2019, which expired for new issuance on February 16, 2020. During the fourth quarter of 2019, we sold $100,000,000 aggregate principal amount of 3.85% senior unsecured notes maturing in 2031 to Prudential. The following table sets forth information regarding debt obligations by component as of December 31, 2019 and 2018 (dollar amounts in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | At December 31, 2019 | ​ | At December 31, 2018 | ​
​ | ​ | Applicable | ​ | ​ | ​ | Available | ​ | ​ | ​ | Available | ​
​ | ​ | Interest | ​ | Outstanding | ​ | for | ​ | Outstanding | ​ | for | ​
Debt Obligations | ​ | Rate (1) | ​ | Balance | ​ | Borrowing | ​ | Balance | ​ | Borrowing | ​
Bank borrowings (2) | ​ | 3.14% | ​ | $ | 93,900 | ​ | $ | 506,100 | ​ | $ | 112,000 | ​ | $ | 488,000 | ​
Senior unsecured notes, net of debt issue costs | ​ | 4.39% | ​ | ​ | 599,488 | ​ | ​ | 21,500 | ​ | ​ | 533,029 | ​ | ​ | 93,833 | ​
Total | ​ | 4.22% | ​ | $ | 693,388 | ​ | $ | 527,600 | ​ | $ | 645,029 | ​ | $ | 581,833 | ​
(1) | Represents weighted average of interest rate as of December 31, 2019.
​
(2) | Subsequent to December 31, 2019, we borrowed $18,000 under our unsecured revolving line of credit, accordingly we have $111,900 outstanding balance and $488,100 available for borrowing under our unsecured revolving line of credit.
​ ​ Our borrowings and repayments for the years ended December 31, 2019, 2018 and 2017 are as follows (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 2019 | ​ | 2018 | ​ | 2017
Debt Obligations | ​ | ​ | Borrowings | ​ | ​ | Repayments | ​ | Borrowings | ​ | Repayments | ​ | ​ | Borrowings | ​ | ​ | Repayments
Bank borrowings | ​ | $ | 107,900 | ​ | $ | (126,000) | ​ | $ | 116,200 | ​ | $ | (100,700) | ​ | $ | 113,000 | ​ | $ | (123,600)
Senior unsecured notes | ​ | ​ | 100,000 | (1) | ​ | (33,667) | ​ | ​ | — | ​ | ​ | (38,166) | ​ | ​ | 100,000 | (2) | ​ | (31,167)
Total | ​ | $ | 207,900 | ​ | $ | (159,667) | ​ | $ | 116,200 | ​ | $ | (138,866) | ​ | $ | 213,000 | ​ | $ | (154,767)
(1) | During the fourth quarter of 2019, we sold $100,000 senior unsecured notes to Prudential. See above to further discussion.
​
(2) | 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.
​ ​ Scheduled Principal Payments. The following table represents our long-term contractual obligations (scheduled principal payments and amounts due at maturity) as of December 31, 2019, and excludes the effects of interest and debt issue costs (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Total |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  | 2024 |  | Thereafter |
Bank borrowings | ​ | $ | 93,900 | (1) | $ | — | ​ | $ | — | ​ | $ | 93,900 | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​
Senior unsecured notes | ​ |  | 600,300 | ​ |  | 40,160 | ​ |  | 47,160 | ​ |  | 48,160 | ​ |  | 49,160 | ​ |  | 49,160 | ​ |  | 366,500 | ​
​ | ​ | $ | 694,200 | ​ | $ | 40,160 | ​ | $ | 47,160 | ​ | $ | 142,060 | ​ | $ | 49,160 | ​ | $ | 49,160 | ​ | $ | 366,500 | ​
(1) | Subsequent to December 31, 2019, we borrowed $18,000 under our unsecured revolving line of credit, accordingly we have $111,900 outstanding balance and $488,100 available for borrowing.
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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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