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Debt | 9 Months Ended
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Sep. 30, 2016
Debt Disclosure [Abstract] |
Debt | Debt Term Loans and Revolver The Company has the following unsecured credit agreements in place:
• | $400.0 million revolving credit facility with a scheduled maturity date of April 22, 2020 with a one-year extension option if certain conditions are satisfied (the "Revolver");
• | $400.0 million term loan with a scheduled maturity date of March 20, 2019 (the "$400 Million Term Loan Maturing 2019"). This term loan was referred to as the 2012 Five-Year Term Loan in periodic filings prior to the Company's quarterly report on Form 10-Q for the quarterly period ended June 30, 2016;
• | $225.0 million term loan with a scheduled maturity date of November 20, 2019 (the "$225 Million Term Loan Maturing 2019"). This term loan was referred to as the 2012 Seven-Year Term Loan in periodic filings prior to the Company's quarterly report on Form 10-Q for the quarterly period ended June 30, 2016;
• | $400.0 million term loan with a scheduled maturity date of April 22, 2021 (the "$400 Million Term Loan Maturing 2021"). This term loan was referred to as the 2013 Five-Year Term Loan in periodic filings prior to the Company's quarterly report on Form 10-Q for the quarterly period ended June 30, 2016; and
• | $150.0 million term loan with a scheduled maturity date of January 22, 2022 (the "$150 Million Term Loan Maturing 2022"). This term loan was referred to as the 2014 Seven-Year Term Loan in periodic filings prior to the Company's quarterly report on Form 10-Q for the quarterly period ended June 30, 2016.
The $400 Million Term Loan Maturing 2019, the $225 Million Term Loan Maturing 2019, the $400 Million Term Loan Maturing 2021, and the $150 Million Term Loan Maturing 2022 are collectively the "Term Loans". The Term Loans and Revolver are subject to customary financial covenants. As of September 30, 2016 and December 31, 2015, the Company was in compliance with all financial covenants. As of September 30, 2016 and December 31, 2015, the details of the unsecured credit agreements were as follows (in thousands):
|  |  |  |  |  | Outstanding Borrowings at
|  | Interest Rate at September 30, 2016 (1) |  | Maturity Date |  | September 30, 2016 |  | December 31, 2015
Revolver (2) |  | 2.03% |  | April 2020 |  | $ | — |  |  | $ | — |
$400 Million Term Loan Maturing 2019 |  | 2.72% |  | March 2019 |  | 400,000 |  |  | 400,000 |
$225 Million Term Loan Maturing 2019 |  | 4.04% |  | November 2019 |  | 225,000 |  |  | 225,000 |
$400 Million Term Loan Maturing 2021 |  | 2.92% |  | April 2021 |  | 400,000 |  |  | 400,000 |
$150 Million Term Loan Maturing 2022 |  | 3.43% |  | January 2022 |  | 150,000 |  |  | 150,000 |
|  |  |  |  |  | 1,175,000 |  |  | 1,175,000 |
Deferred financing costs, net (3) |  |  |  |  |  | (6,107 | ) |  | (5,563 | )
Total |  |  |  |  |  | $ | 1,168,893 |  |  | $ | 1,169,437 |
(1) | Interest rate at September 30, 2016 gives effect to interest rate hedges.
(2) | At September 30, 2016 and December 31, 2015, there was $400.0 million and $300.0 million of borrowing capacity on the Revolver, respectively.
(3) | Excludes $2.5 million and $0.8 million as of September 30, 2016 and December 31, 2015, respectively, related to deferred financing costs on the Revolver, which are included in prepaid expense and other assets in the accompanying consolidated balance sheets.
Mortgage Loans As of September 30, 2016 and December 31, 2015, the Company was subject to the following mortgage loans (in thousands):
|  |  |  |  |  |  |  |  |  |  |  | Principal balance at
Lender |  | Number of Assets Encumbered |  | Interest Rate at September 30, 2016 (1) |  |  |  | Maturity Date |  |  |  | September 30, 2016 |  | December 31, 2015
Wells Fargo |  | 4 |  | 4.00% |  | (2) |  | October 2017 |  | (3) |  | $ | 150,000 |  |  | $ | 150,000 |
Wells Fargo (4) |  | 4 |  | 4.04% |  |  |  | March 2018 |  | (3) |  | 147,000 |  |  | 149,250 |
PNC Bank (5) |  | 5 |  | 2.63% |  | (2) |  | March 2021 |  | (6) |  | 85,000 |  |  | 74,000 |
Wells Fargo (7) |  | 1 |  | 5.25% |  |  |  | June 2022 |  |  |  | 33,854 |  |  | 34,505 |
|  |  |  |  |  |  |  |  |  |  |  | 415,854 |  |  | 407,755 |
Deferred financing costs, net |  |  |  |  |  |  |  |  |  |  |  | (1,750 | ) |  | (1,706 | )
Total |  | 14 |  |  |  |  |  |  |  |  |  | $ | 414,104 |  |  | $ | 406,049 |
(1) | Interest rate at September 30, 2016 gives effect to interest rate hedges.
(2) | Requires payments of interest only through maturity.
(3) | Maturity date may be extended for four one-year terms at the Company’s option, subject to certain lender requirements.
(4) | Two of the four hotels encumbered by the Wells Fargo loan are cross-collateralized.
(5) | The five hotels encumbered by the PNC Bank loan are cross-collateralized.
(6) | Maturity date may be extended for two one-year terms at the Company’s option, subject to certain lender requirements.
(7) | Includes $1.1 million and $1.2 million at September 30, 2016 and December 31, 2015, respectively, related to a fair value adjustment of $1.3 million on mortgage debt assumed in conjunction with an acquisition, net of accumulated amortization of $0.2 million and $0.1 million at September 30, 2016 and December 31, 2015, respectively.
Certain mortgage agreements are subject to customary financial covenants. The Company was in compliance with all financial covenants at September 30, 2016 and December 31, 2015. Interest Expense For the three and nine months ended September 30, 2016 and 2015, the components of interest expense were as follows (in thousands):
|  | For the three months ended September 30, |  | For the nine months ended September 30,
|  | 2016 |  | 2015 |  | 2016 |  | 2015
Mortgage loans |  | $ | 4,009 |  |  | $ | 3,687 |  |  | $ | 11,992 |  |  | $ | 12,523 |
Term Loans and Revolver |  | 9,662 |  |  | 9,842 |  |  | 29,138 |  |  | 26,025 |
Amortization of deferred financing costs |  | 881 |  |  | 1,055 |  |  | 3,103 |  |  | 3,111 |
Capitalized interest |  | — |  |  | (542 | ) |  | — |  |  | (1,774 | )
Total interest expense |  | $ | 14,552 |  |  | $ | 14,042 |  |  | $ | 44,233 |  |  | $ | 39,885 |

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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 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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