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Debt | 9 Months Ended
--- | ---
Sep. 30, 2017
Debt Disclosure [Abstract] |
Debt | Debt The following table sets forth information regarding the Company’s debt as of September 30, 2017 and December 31, 2016 (dollars in thousands):
|  |  |  |  |  | Principal Balance as of
Property |  | Interest Rate |  | Maturity Date |  | September 30, 2017 |  | December 31, 2016
Lexington Hotel New York |  | LIBOR + 2.25% |  | October 2017 (1) |  | $ | — |  |  | $ | 170,368 |
Salt Lake City Marriott Downtown |  | 4.25% |  | November 2020 |  | 57,122 |  |  | 58,331 |
Westin Washington D.C. City Center |  | 3.99% |  | January 2023 |  | 65,346 |  |  | 66,848 |
The Lodge at Sonoma, a Renaissance Resort & Spa |  | 3.96% |  | April 2023 |  | 28,432 |  |  | 28,896 |
Westin San Diego |  | 3.94% |  | April 2023 |  | 65,220 |  |  | 66,276 |
Courtyard Manhattan / Midtown East |  | 4.40% |  | August 2024 |  | 84,421 |  |  | 85,451 |
Renaissance Worthington |  | 3.66% |  | May 2025 |  | 84,504 |  |  | 85,000 |
JW Marriott Denver at Cherry Creek |  | 4.33% |  | July 2025 |  | 63,790 |  |  | 64,579 |
Boston Westin |  | 4.36% |  | November 2025 |  | 198,922 |  |  | 201,470 |
Unamortized debt issuance costs |  |  |  |  |  | (4,989 | ) |  | (6,052 | )
Total mortgage debt, net of unamortized debt issuance costs |  |  |  |  |  | 642,768 |  |  | 821,167 |
Unsecured term loan |  | LIBOR + 1.45% (2) |  | May 2021 |  | 100,000 |  |  | 100,000 |
Unsecured term loan |  | LIBOR + 1.45% (3) |  | April 2022 |  | 200,000 |  |  | — |
Unamortized debt issuance costs |  |  |  |  |  | (1,963 | ) |  | (628 | )
Unsecured term loan, net of unamortized debt issuance costs |  |  |  |  |  | 298,037 |  |  | 99,372 |
Senior unsecured credit facility |  | LIBOR + 1.50% |  | May 2020 (4) |  | — |  |  | — |
Total debt, net of unamortized debt issuance costs |  |  |  |  |  | $ | 940,805 |  |  | $ | 920,539 |
Weighted-Average Interest Rate |  | 3.75% |  |  |  |  |  |
_______________________
(1) | The mortgage loan was repaid on April 26, 2017.
(2) | The interest rate as of September 30, 2017 was 2.68%.
(3) | The interest rate as of September 30, 2017 was 2.69%.
(4) | The credit facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.
Mortgage Debt We have incurred limited recourse, property specific mortgage debt secured by certain of our hotels. In the event of default, the lender may only foreclose on the secured assets; however, in the event of fraud, misapplication of funds or other customary recourse provisions, the lender may seek payment from us. As of September 30, 2017, eight of our 28 hotels were secured by mortgage debt. Our mortgage debt contains certain property specific covenants and restrictions, including minimum debt service coverage ratios that trigger “cash trap” provisions as well as restrictions on incurring additional debt without lender consent. As of September 30, 2017, we were in compliance with the financial covenants of our mortgage debt. On April 26, 2017, we repaid the mortgage loan secured by the Lexington Hotel New York with proceeds from a new unsecured term loan, which is discussed further below. The mortgage loan had an outstanding principal balance of $170.4 million at repayment. Senior Unsecured Credit Facility We are party to a senior unsecured credit facility with a capacity up to $300 million. The maturity date is May 2020 and may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. The facility also includes an accordion feature to expand up to $600 million, subject to lender consent. The interest rate on the facility is based upon LIBOR, plus an applicable margin based upon the Company’s leverage ratio, as follows:
Leverage Ratio |  | Applicable Margin
Less than or equal to 35% |  | 1.50 | %
Greater than 35% but less than or equal to 45% |  | 1.65 | %
Greater than 45% but less than or equal to 50% |  | 1.80 | %
Greater than 50% but less than or equal to 55% |  | 2.00 | %
Greater than 55% |  | 2.25 | %
In addition to the interest payable on amounts outstanding under the facility, we were required to pay an amount equal to 0.20% of the unused portion of the facility if the average usage of the facility was greater than 50% or 0.30% of the unused portion of the facility if the average usage of the facility was less than or equal to 50%. The facility also contains various corporate financial covenants. A summary of the most restrictive covenants is as follows:
|  |  | Actual at
| Covenant |  | September 30, 2017
Maximum leverage ratio (1) | 60% |  | 24.4%
Minimum fixed charge coverage ratio (2) | 1.50x |  | 4.46x
Minimum tangible net worth (3) | $1.91 billion |  | $2.57 billion
Secured recourse indebtedness | Less than 45% of Total Asset Value |  | 21.2%
_____________________________
(1) | Leverage ratio is net indebtedness, as defined in the credit agreement, divided by total asset value, defined in the credit agreement as the value of our owned hotels based on hotel net operating income divided by a defined capitalization rate.
(2) | Fixed charge coverage ratio is Adjusted EBITDA, generally defined in the credit agreement as EBITDA less FF&E reserves, for the most recently ending 12 months, to fixed charges, which is defined in the credit agreement as interest expense, all regularly scheduled principal payments and payments on capitalized lease obligations, for the same most recently ending 12-month period.
(3) | Tangible net worth, as defined in the credit agreement, is (i) total gross book value of all assets, exclusive of depreciation and amortization, less intangible assets, total indebtedness, and all other liabilities, plus (ii) 75% of net proceeds from future equity issuances.
As of September 30, 2017, we had no borrowings outstanding under the facility and the Company's leverage ratio was 24.4%. Accordingly, interest on our borrowings under the facility, if any, will be based on LIBOR plus 150 basis points for the following quarter. We incurred interest and unused credit facility fees on the facility of $0.2 million and $0.2 million for the three months ended September 30, 2017 and 2016, respectively. We incurred interest and unused credit facility fees on the facility of $0.7 million and $1.1 million for the nine months ended September 30, 2017 and 2016, respectively. Unsecured Term Loans We are party to a five-year $100 million unsecured term loan. On April 26, 2017, we closed on a new five-year $200 million unsecured term loan. A portion of the proceeds from the new term loan was used to repay the $170.4 million mortgage loan secured by the Lexington Hotel New York. The financial covenants of the term loans are consistent with the covenants on our senior unsecured credit facility, which are described above. The interest rate on each of the term loans is based on a pricing grid ranging from 145 to 220 basis points over LIBOR, as follows:
Leverage Ratio |  | Applicable Margin
Less than or equal to 35% |  | 1.45 | %
Greater than 35% but less than or equal to 45% |  | 1.60 | %
Greater than 45% but less than or equal to 50% |  | 1.75 | %
Greater than 50% but less than or equal to 55% |  | 1.95 | %
Greater than 55% |  | 2.20 | %
As of September 30, 2017, the Company's leverage ratio was 24.4%. Accordingly, interest on our borrowings under the term loans will be based on LIBOR plus 145 basis points for the following quarter. We incurred interest on the term loans of $2.1 million and $0.5 million for the three months ended September 30, 2017 and 2016, respectively. We incurred interest on the term loans of $4.2 million and $0.8 million or the nine months ended September 30, 2017 and 2016, respectively.

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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 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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