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Debt Obligations, net | 3 Months Ended
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Mar. 31, 2020
Debt Disclosure [Abstract] |
Debt Obligations, net | Debt Obligations, net The Company's debt obligations were as follows ($ in thousands):
| Carrying Value as of |  | Stated Interest Rates |  | Scheduled Maturity Date
| March 31, 2020 |  | December 31, 2019 |  |
Secured credit facilities and mortgages: |  |  |  |  |  |  |
Revolving Credit Facility | $ | 300,000 |  |  | $ | — |  |  | LIBOR + 2.00% | (1) | September 2022
Senior Term Loan | 491,875 |  |  | 491,875 |  |  | LIBOR + 2.75% | (2) | June 2023
Mortgages collateralized by net lease assets(3) | 724,209 |  |  | 721,118 |  |  | 2.54% - 7.26% | (3) |
Total secured credit facilities and mortgages | 1,516,084 |  |  | 1,212,993 |  |  |  |  |
Unsecured notes: |  |  |  |  |  |  |
6.00% senior notes(4) | — |  |  | 110,545 |  |  | 6.00% |  | —
5.25% senior notes(5) | 400,000 |  |  | 400,000 |  |  | 5.25% |  | September 2022
3.125% senior convertible notes(6) | 287,500 |  |  | 287,500 |  |  | 3.125% |  | September 2022
4.75% senior notes(7) | 775,000 |  |  | 775,000 |  |  | 4.75% |  | October 2024
4.25% senior notes(8) | 550,000 |  |  | 550,000 |  |  | 4.25% |  | August 2025
Total unsecured notes | 2,012,500 |  |  | 2,123,045 |  |  |  |  |
Other debt obligations: |  |  |  |  |  |  |
Trust preferred securities | 100,000 |  |  | 100,000 |  |  | LIBOR + 1.50% |  | October 2035
Total debt obligations | 3,628,584 |  |  | 3,436,038 |  |  |  |  |
Debt discounts and deferred financing costs, net | (45,224 | ) |  | (48,958 | ) |  |  |  |
Total debt obligations, net(9) | $ | 3,583,360 |  |  | $ | 3,387,080 |  |  |  |  |
_______________________________________________________________________________
(1) | The Revolving Credit Facility bears interest at the Company's election of either: (i) a base rate, which is the greater of (a) prime, (b) federal funds plus 0.50% or (c) LIBOR plus 1.0% and subject to a margin ranging from 1.00% to 1.50%; or (ii) LIBOR subject to a margin ranging from 2.00% to 2.50%. At maturity, the Company may convert outstanding borrowings to a one year term loan which matures in quarterly installments through September 2023.
(2) | The loan bears interest at the Company's election of either: (i) a base rate, which is the greater of (a) prime, (b) federal funds plus 0.50% or (c) LIBOR plus 1.0% and subject to a margin of 1.75%; or (ii) LIBOR subject to a margin of 2.75%.
(3) | As of March 31, 2020, the weighted average interest rate of these loans is 4.4%, inclusive of the effect of interest rate swaps.
(4) | The Company repaid these senior notes in January 2020.
(5) | The Company can prepay these senior notes without penalty beginning September 15, 2021.
(6) | The Company's 3.125% senior convertible fixed rate notes due September 2022 ("3.125% Convertible Notes") are convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding September 15, 2022. The conversion rate as of March 31, 2020 was 68.3420 shares per $1,000 principal amount of 3.125% Convertible Notes, which equals a conversion price of $14.63 per share. The conversion rate is subject to adjustment from time to time for specified events. Upon conversion, the Company will pay or deliver, as the case may be, a combination of cash and shares of its common stock. At issuance in September 2017, the Company valued the liability component at $221.8 million, net of fees, and the equity component of the conversion feature at $22.5 million, net of fees, and recorded the equity component in "Additional paid-in capital" on the Company's consolidated balance sheet. In October 2017, the initial purchasers of the 3.125% Convertible Notes exercised their option to purchase an additional $37.5 million aggregate principal amount of the 3.125% Convertible Notes. At issuance, the Company valued the liability component at $34.0 million, net of fees, and the equity component of the conversion feature at $3.4 million, net of fees, and recorded the equity component in "Additional paid-in capital" on the Company's consolidated balance sheet. As of March 31, 2020, the carrying value of the 3.125% Convertible Notes was $270.2 million, net of fees, and the unamortized discount of the 3.125% Convertible Notes was $14.2 million, net of fees. As of December 31, 2019, the carrying value of the 3.125% Convertible Notes was $268.7 million, net of fees, and the unamortized discount of the 3.125% Convertible Notes was $15.5 million, net of fees. During the three months ended March 31, 2020 and 2019, the Company recognized $2.2 million and $2.2 million, respectively, of contractual interest and $1.3 million and $1.2 million, respectively, of discount amortization on the 3.125% Convertible Notes. The effective interest rate was 5.2%.
(7) | The Company can prepay these senior notes without penalty beginning July 1, 2024.
(8) | The Company can prepay these senior notes without penalty beginning May 1, 2025.
(9) | The Company capitalized interest relating to development activities of $0.5 million and $3.0 million during the three months ended March 31, 2020 and 2019, respectively.
Future Scheduled Maturities—As of March 31, 2020, future scheduled maturities of outstanding debt obligations are as follows ($ in thousands):
| Unsecured Debt |  | Secured Debt |  | Total
2020 (remaining nine months) | $ | — |  |  | $ | — |  |  | $ | — |
2021 | — |  |  | 158,358 |  |  | 158,358 |
2022 | 687,500 |  |  | 347,624 |  |  | 1,035,124 |
2023 | — |  |  | 491,875 |  |  | 491,875 |
2024 | 775,000 |  |  | — |  |  | 775,000 |
Thereafter | 650,000 |  |  | 518,227 |  |  | 1,168,227 |
Total principal maturities | 2,112,500 |  |  | 1,516,084 |  |  | 3,628,584 |
Unamortized discounts and deferred financing costs, net | (37,915 | ) |  | (7,309 | ) |  | (45,224 | )
Total debt obligations, net | $ | 2,074,585 |  |  | $ | 1,508,775 |  |  | $ | 3,583,360 |
Senior Term Loan—In June 2018, the Company amended its senior term loan (the "Senior Term Loan") to increase the amount of the loan to $650.0 million, reduce the interest rate to LIBOR plus 2.75% and extend its maturity to June 2023. The Senior Term Loan is secured by pledges of equity of certain subsidiaries that own a defined pool of assets. The Senior Term Loan permits substitution of collateral, subject to overall collateral pool coverage and concentration limits, over the life of the facility. The Company may make optional prepayments, subject to prepayment fees, and is required to repay 0.25% of the principal amount each quarter. Revolving Credit Facility—In September 2019, the Company amended its secured revolving credit facility (the "Revolving Credit Facility") to increase the maximum capacity to $350.0 million, extend the maturity date to September 2022 and make certain other changes. Outstanding borrowings under the Revolving Credit Facility are secured by a pledge of the equity interests in the Company's subsidiaries that own a defined pool of assets. Borrowings under this credit facility bear interest at a floating rate indexed to one of several base rates plus a margin which adjusts upward or downward based upon the Company's corporate credit rating, ranging from 1.0% to 1.5% in the case of base rate loans and from 2.0% to 2.5% in the case of LIBOR loans. In addition, there is an undrawn credit facility commitment fee that ranges from 0.25% to 0.45%, based on corporate credit ratings. At maturity, the Company may convert outstanding borrowings to a one year term loan which matures in quarterly installments through September 2023. During the three months ended March 31, 2020, the Company borrowed $300.0 million on the Revolving Credit Facility and as of March 31, 2020, based on the Company's borrowing base of assets, had the ability to draw $50.0 million without pledging any additional assets to the facility. Unsecured Notes—In September 2019, the Company issued $675.0 million principal amount of 4.75% senior unsecured notes due October 2024. Proceeds from the offering, together with cash on hand, were used to repay in full the $400.0 million principal amount outstanding of the 4.625% senior unsecured notes due September 2020 and the $275.0 million principal amount outstanding of the 6.50% senior unsecured notes due July 2021. In November 2019, the Company issued an additional $100.0 million principal amount of 4.75% senior unsecured notes due October 2024 at 102% of par, representing a yield to maturity of 4.29%. In December 2019, the Company issued $550.0 million principal amount of 4.25% senior unsecured notes due August 2025. Proceeds from the offering were used to redeem the $375.0 million principal amount outstanding ($110.5 million was redeemed in January 2020) of the 6.00% senior unsecured notes due April 2022, repay a portion of the borrowings outstanding under the Senior Term Loan and pay related premiums and expenses in connection with the transaction. During the three months ended March 31, 2020, repayments of unsecured notes prior to maturity resulted in losses on early extinguishment of debt of $4.1 million. Collateral Assets—The carrying value of the Company's assets that are directly pledged or are held by subsidiaries whose equity is pledged as collateral to secure the Company's obligations under its secured debt facilities are as follows, by asset type ($ in thousands):
| As of
| March 31, 2020 |  | December 31, 2019
| Collateral Assets(1) |  | Non-Collateral Assets |  | Collateral Assets(1) |  | Non-Collateral Assets
Real estate, net | $ | 1,392,658 |  |  | $ | 108,431 |  |  | $ | 1,409,585 |  |  | $ | 117,634 |
Real estate available and held for sale | — |  |  | 34,391 |  |  | — |  |  | 8,650 |
Net investment in leases(2) | 420,380 |  |  | — |  |  | 418,915 |  |  | — |
Land and development, net | — |  |  | 514,064 |  |  | — |  |  | 580,545 |
Loans receivable and other lending investments, net(3)(4) | 234,612 |  |  | 590,019 |  |  | 233,104 |  |  | 566,050 |
Other investments | — |  |  | 1,029,552 |  |  | — |  |  | 907,875 |
Cash and other assets | — |  |  | 882,674 |  |  | — |  |  | 814,044 |
Total | $ | 2,047,650 |  |  | $ | 3,159,131 |  |  | $ | 2,061,604 |  |  | $ | 2,994,798 |
_______________________________________________________________________________
(1) | The Senior Term Loan and the Revolving Credit Facility are secured only by pledges of equity of certain of the Company's subsidiaries and not by pledges of the assets held by such subsidiaries. Such subsidiaries are subject to contractual restrictions under the terms of such credit facilities, including restrictions on incurring new debt (subject to certain exceptions). As of March 31, 2020, Collateral Assets includes $428.5 million carrying value of assets held by entities whose equity interests are pledged as collateral for the Revolving Credit Facility.
(2) | As of March 31, 2020, the amount presented excludes a general allowance for net investment of leases of $10.4 million.
(3) | As of March 31, 2020 and December 31, 2019, the amounts presented exclude general allowance for loan losses of $11.6 million and $6.9 million, respectively.
(4) | As of March 31, 2020 and December 31, 2019, the amounts presented exclude loan participations of $37.8 million and $35.6 million, respectively.
Debt Covenants The Company's outstanding unsecured debt securities contain corporate level covenants that include a covenant to maintain a ratio of unencumbered assets to unsecured indebtedness, as such terms are defined in the indentures governing the debt securities, of at least 1.2 x and a covenant not to incur additional indebtedness (except for incurrences of permitted debt), if on a pro forma basis the Company's consolidated fixed charge coverage ratio, determined in accordance with the indentures governing the Company's debt securities, is 1.5 x or lower. If any of the Company's covenants are breached and not cured within applicable cure periods, the breach could result in acceleration of its debt securities unless a waiver or modification is agreed upon with the requisite percentage of the bondholders. If the Company's ability to incur additional indebtedness under the fixed charge coverage ratio is limited, the Company is permitted to incur indebtedness for the purpose of refinancing existing indebtedness and for other permitted purposes under the indentures. The Company's Senior Term Loan and the Revolving Credit Facility contain certain covenants, including covenants relating to collateral coverage, restrictions on fundamental changes, transactions with affiliates, matters relating to the liens granted to the lenders and the delivery of information to the lenders. In particular, the Senior Term Loan requires the Company to maintain collateral coverage of at least 1.25 x outstanding borrowings on the facility. The Revolving Credit Facility is secured by a borrowing base of assets and requires the Company to maintain both borrowing base asset value of at least 1.5 x outstanding borrowings on the facility and a consolidated ratio of cash flow to fixed charges of at least 1.5 x. The Revolving Credit Facility does not require that proceeds from the borrowing base be used to pay down outstanding borrowings provided the borrowing base asset value remains at least 1.5 x outstanding borrowings on the facility. To satisfy this covenant, the Company has the option to pay down outstanding borrowings or substitute assets in the borrowing base. Under both the Senior Term Loan and the Revolving Credit Facility the Company is permitted to pay dividends provided that no material default (as defined in the relevant agreement) has occurred and is continuing or would result therefrom and the Company remains in compliance with its financial covenants after giving effect to the dividend. The Company's Senior Term Loan and the Revolving Credit Facility contain cross default provisions that would allow the lenders to declare an event of default and accelerate the Company's indebtedness to them if the Company fails to pay amounts due in respect of its other recourse indebtedness in excess of specified thresholds or if the lenders under such other indebtedness are otherwise permitted to accelerate such indebtedness for any reason. The indentures governing the Company's unsecured public debt securities permit the bondholders to declare an event of default and accelerate the Company's indebtedness to them if the Company's other recourse indebtedness in excess of specified thresholds is not paid at final maturity or if such indebtedness is accelerated.

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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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