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Debt Obligations | 9 Months Ended
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Sep. 30, 2012
Debt Disclosure [Abstract] |
DEBT OBLIGATIONS | DEBT OBLIGATIONS The following table sets forth information regarding the Company’s consolidated debt obligations outstanding at September 30, 2012 and December 31, 2011 (in thousands): MORTGAGE DEBT:
Property / Location | September 30, 2012 |  | December 31, 2011 |  | Effective Interest Rate |  |  |  | Maturity Date
Newtown Square/Berwyn Park/Libertyview | $ | 55,289 |  |  | $ | 56,538 |  |  | 7.25 | % |  |  |  | May-13
Southpoint III | 1,317 |  |  | 1,887 |  |  | 7.75 | % |  |  |  | Apr-14
Tysons Corner | 93,625 |  |  | 94,882 |  |  | 5.36 | % |  | (a) |  | Aug-15
Two Logan Square | 89,524 |  |  | 89,800 |  |  | 7.57 | % |  |  |  | Apr-16
Fairview Eleven Tower | 22,000 |  |  | 22,000 |  |  | 4.25 | % |  |  |  | Jan-17
IRS Philadelphia Campus | 198,592 |  |  | 202,905 |  |  | 7.00 | % |  |  |  | Sep-30
Cira South Garage | 42,834 |  |  | 44,379 |  |  | 7.12 | % |  |  |  | Sep-30
Principal balance outstanding | 503,181 |  |  | 512,391 |  |  |  |  |  |  |  |
Plus: fair market value premiums (discounts), net | (1,058 | ) |  | (1,330 | ) |  |  |  |  |  |  |
Total mortgage indebtedness | $ | 502,123 |  |  | $ | 511,061 |  |  |  |  |  |  |  |
UNSECURED DEBT: |  |  |  |  |  |  |  |  |  |
Former Term Loan | — |  |  | 37,500 |  |  | LIBOR + 0.80% |  |  | (b) |  | Feb-12
Former Revolving Credit Facility | — |  |  | 275,500 |  |  | LIBOR + 0.725% |  |  | (b) |  | Feb-12
New Credit Facility | — |  |  | — |  |  | LIBOR + 1.50% |  |  | (b) |  | Feb-16
Three-Year Term Loan - Swapped to fixed | 150,000 |  |  | — |  |  | 2.60 | % |  | (b) |  | Feb-15
Four-Year Term Loan - Swapped to fixed | 150,000 |  |  | — |  |  | 2.88 | % |  | (b) |  | Feb-16
Four-Year Term Loan - Variable | 100,000 |  |  | — |  |  | LIBOR + 1.75% |  |  | (b) |  | Feb-16
Seven-Year Term Loan - Swapped to fixed | 200,000 |  |  | — |  |  | 3.62 | % |  | (b) |  | Feb-19
$300.0M 5.750% Guaranteed Notes due 2012 | — |  |  | 151,491 |  |  | 5.73 | % |  | (c) |  | Apr-12
$250.0M 5.400% Guaranteed Notes due 2014 | 238,379 |  |  | 242,681 |  |  | 5.53 | % |  |  |  | Nov-14
$250.0M 7.500% Guaranteed Notes due 2015 | 216,819 |  |  | 227,329 |  |  | 7.77 | % |  |  |  | May-15
$250.0M 6.000% Guaranteed Notes due 2016 | 250,000 |  |  | 250,000 |  |  | 5.95 | % |  |  |  | Apr-16
$300.0M 5.700% Guaranteed Notes due 2017 | 300,000 |  |  | 300,000 |  |  | 5.75 | % |  |  |  | May-17
$325.0M 4.950% Guaranteed Notes due 2018 | 325,000 |  |  | 325,000 |  |  | 5.14 | % |  |  |  | Apr-18
Indenture IA (Preferred Trust I) | 27,062 |  |  | 27,062 |  |  | 2.75 | % |  |  |  | Mar-35
Indenture IB (Preferred Trust I) | 25,774 |  |  | 25,774 |  |  | 3.30 | % |  |  |  | Apr-35
Indenture II (Preferred Trust II) | 25,774 |  |  | 25,774 |  |  | 3.09 | % |  |  |  | Jul-35
Principal balance outstanding | 2,008,808 |  |  | 1,888,111 |  |  |  |  |  |  |  |
plus: original issue premium (discount), net | (4,342 | ) |  | (5,177 | ) |  |  |  |  |  |  |
Total unsecured indebtedness | $ | 2,004,466 |  |  | $ | 1,882,934 |  |  |  |  |  |  |  |
Total Debt Obligations | $ | 2,506,589 |  |  | $ | 2,393,995 |  |  |  |  |  |  |  |
(a) | This loan was assumed upon acquisition of the related property. The interest rate reflects the market rate at the time of acquisition.
(b) | On February 1, 2012, the Company closed on a new $600.0 million four-year unsecured credit facility and three unsecured term loans (the "New Term Loans") totaling $600.0 million which consist of a $150.0 million three-year loan, a $250.0 million four-year loan and a $200.0 million seven-year loan. The Company used a portion of the net proceeds from the term loans to repay all balances outstanding under its former Revolving Credit Facility and its former $183.0 million Bank Term Loan which were then retired prior to their scheduled June 29, 2012 maturity.
(c) | Notes matured on April 1, 2012, and were repaid using a portion of the proceeds from the term loans.
During the nine-month periods ended September 30, 2012 and September 30, 2011, the Company’s weighted-average effective interest rate on its mortgage notes payable was 6.72% and 6.83%, respectively. During the nine-months ended September 30, 2012, the Company repurchased $15.1 million of its outstanding unsecured Notes in a series of transactions that are summarized in the following table (in thousands):
Notes | Repurchase Amount |  | Principal |  | Loss |  | Deferred Financing Amortization
2012 5.750% Notes | $ | 309 |  |  | $ | 301 |  |  | $ | (2 | ) |  | $ | — |
2014 5.400% Notes | 4,630 |  |  | 4,302 |  |  | (263 | ) |  | 8 |
2015 7.500% Notes | 12,011 |  |  | 10,510 |  |  | (1,284 | ) |  | 10 |
| $ | 16,950 |  |  | $ | 15,113 |  |  | $ | (1,549 | ) |  | $ | 18 |
The Parent Company unconditionally guarantees the unsecured debt obligations of the Operating Partnership (or is a co-borrower with the Operating Partnership) but does not by itself incur unsecured indebtedness. The Company utilizes its unsecured new revolving credit facility (the "New Credit Facility") for potential borrowings and for general business purposes, including the acquisition, development and redevelopment of properties and the repayment of other debt. The maturity date of the New Credit Facility in place at September 30, 2012 is February 1, 2016. The per annum variable interest rate on any related outstanding balances, for which there were none at September 30, 2012, is LIBOR plus 1.50%. The interest rate and facility fee are subject to adjustment upon a change in the Company’s unsecured debt ratings. As of September 30, 2012, the Company had no related borrowings, with $2.8 million in letters of credit outstanding, leaving $597.2 million of unused availability under the New Credit Facility. During the nine-months ended September 30, 2011, the weighted-average interest rate on the Former Credit Facility borrowings was 0.98%. As of September 30, 2011, the weighted average interest rate on the Former Credit Facility was 0.95%. There were no comparable rates as of September 30, 2012 due to the fact that the Company had no borrowings on its New Credit Facility during the current period. The Company has the option to increase the amounts available to be advanced under the New Credit Facility, the $150.0 million three-year term loan, and the $250.0 million four-year term loan by an aggregate of $200.0 million, subject to customary conditions and limitations, by obtaining additional commitments from the current lenders and other financial institutions. The Company also has the option to extend the maturity dates of each of the New Credit Facility, the $150.0 million three-year term loan and the $250.0 million four-year term loan by one year, subject to payment of an extension fee and other customary conditions and limitations. The $150.0 million three-year term and the $250.0 million four-year term loans can be prepaid by the Company at any time without penalty. The $200.0 million seven-year term loan is subject to a declining prepayment penalty ranging from 3.00% a year after closing, 2.00% after two years, 1.00% after three years and without penalty thereafter. The spread to LIBOR for LIBOR-based loans under the New Credit Facility and New Term Loans will depend on the Company's unsecured senior debt credit rating. Based on the Company's current credit rating, the spread for such loans will be 150, 175, 175 and 190 basis points under the New Credit Facility, the $150.0 million three-year term loan, the $250.0 million four-year term loan and the $200.0 million seven-year term loan, respectively. At the Company's option, loans under the New Credit Facility and New Term Loans may also bear interest at a per annum floating rate equal to the higher of the prime rate or the federal funds rate plus 0.50% per annum. The New Credit Facility contains a competitive bid option that allows banks that are part of the lender consortium to bid to make loans to the Company at a reduced rate. The Company executed hedging transactions that fix the rate on the $200.0 million seven-year term loan at a 3.623% average rate for its full term, and the rate on $300.0 million of notional principal for the other loans at rates in a range of 2.470% to 2.910% for periods of three to five years. All hedges commenced on February 1, 2012 and the rates are inclusive of the LIBOR spread based on the current investment grade rating. See Note 9 for details of the interest rate swaps entered into as of September 30, 2012. The New Credit Facility and New Term Loans contain financial and operating covenants and restrictions. The Company was in compliance with all such restrictions and financial covenants as of September 30, 2012. As of September 30, 2012, the Company’s aggregate scheduled principal payments of debt obligations, excluding amortization of discounts and premiums, were as follows (in thousands):
2012 | $ | 3,262 |
2013 | 66,924 |
2014 | 250,612 |
2015 | 466,853 |
2016 | 596,608 |
Thereafter | 1,127,730 |
Total principal payments | 2,511,989 |
Net unamortized premiums/(discounts) | (5,400 | )
Outstanding indebtedness | $ | 2,506,589 |

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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 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 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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