Debt Obligations

3 Months Ended

Mar. 31, 2022

6.	Debt Obligations

Unsecured Credit Facility. We have an unsecured credit agreement (the “Credit Agreement”) that provides for an aggregate commitment of the lenders of up to $500,000,000 comprising of a $400,000,000 revolving credit facility (the “Revolving Line of Credit”) and two $50,000,000 term loans (the “Term Loans”). The Credit Agreement permits us to request increases to the Revolving Line of Credit and Term Loans commitments up to a total of $1,000,000,000, extends the maturity of the Revolving Line of Credit to November 19, 2025 and provides for a one-year extension option at our discretion, subject to customary conditions. The Term Loans mature on November 19, 2025 and November 19, 2026.

Based on our leverage at March 31, 2022, the facility provides for interest annually at LIBOR plus 115 basis points and a facility fee of 20 basis points. At March 31, 2022, we were in compliance with all covenants.

Interest Rate Swap Agreements. In connection with entering into the Term Loans as discussed above, we entered into two receive variable/pay fixed interest rate swap agreements (“Interest Rate Swaps”) with maturities of November 19, 2025 and November 19, 2026, respectively, that will effectively lock-in the forecasted interest payments on the Term Loans’ borrowings over the four and five year terms of the loans. The Interest Rate Swaps are considered cash flow hedges and are recorded on our Consolidated Balance Sheets at fair value in prepaid expenses and other assets, with cumulative changes in the fair value of these instruments recognized in Accumulated other comprehensive income (loss) on our Consolidated Balance Sheets. During the three months ended March 31, 2022 and 2021, we recorded a $4,876,000 and $0 increase in fair value of Interest Rate Swaps.

As of March 31, 2022 and December 31, 2021, the terms of our Interest Rate Swaps are as follows (dollar amounts in thousands):


						Notional	Fair Value at
Date Entered	Maturity Date	Swap Rate		Rate Index		Amount		March 31, 2022
November 2021	November 19, 2025	2.56	%	1-month LIBOR	$	50,000	$	2,245
November 2021	November 19, 2026	2.69	%	1-month LIBOR		50,000		2,459
					$	100,000	$	4,704

Senior Unsecured Notes. We have senior unsecured notes held by institutional investors with interest rates ranging from 3.85% to 5.03%. The senior unsecured notes mature between 2024 and 2032.

The following table sets forth information regarding debt obligations by component as of March 31, 2022 and December 31, 2021 (dollar amounts in thousands):


		At March 31, 2022				At December 31, 2021
	Applicable			Available				Available
	Interest	Outstanding		for		Outstanding		for
Debt Obligations	Rate ⁽¹⁾	Balance		Borrowing		Balance		Borrowing
Revolving line of credit ⁽²⁾	1.60%	$	157,900	$	242,100	$	110,900	$	289,100
Term loans, net of debt issue costs	2.63%		99,400		—		99,363		—
Senior unsecured notes, net of debt issue costs	4.35%		505,482		—		512,456		—
Total	3.55%	$	762,782	$	242,100	$	722,719	$	289,100

(1)	Represents weighted average of interest rate as of March 31, 2022.

(2)	Subsequent to March 31, 2022, we borrowed $52,000 and repaid $18,000 under our Revolving Line of Credit. Accordingly,

we have $191,900 outstanding and $208,100 available for borrowing under our Revolving Line of Credit.

Our borrowings and repayments are as follows (in thousands):


	Three Months Ended March 31,
	2022						2021
Debt Obligations		Borrowings			Repayments		Borrowings		Repayments
Revolving line of credit	$	47,000	⁽¹⁾	$	—	⁽¹⁾	$	17,000	$	—
Senior unsecured notes		—			(7,000)			—		(7,000)
Total	$	47,000		$	(7,000)		$	17,000	$	(7,000)

(1)	Subsequent to March 31, 2022, we borrowed $52,000 and repaid $18,000 under our Revolving Line of Credit. Accordingly, we have $191,900 outstanding and $208,100 available for borrowing under our Revolving Line of Credit.

- 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

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-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details