Debt Obligations

9 Months Ended

Sep. 30, 2019

The following table sets forth information regarding the Company’s consolidated debt obligations outstanding at September 30, 2019 and December 31, 2018 (in thousands):



	September 30, 2019			December 31, 2018			Effective Interest Rate	Maturity Date
MORTGAGE DEBT:
Two Logan Square	$	81,535		$	82,805		3.98%	May 2020
Four Tower Bridge	9,351			9,526			4.50%	February 2021
One Commerce Square	117,486			120,183			3.64%	April 2023
Two Commerce Square	108,991			110,518			4.51%	April 2023
Principal balance outstanding	317,363			323,032
Plus: fair market value premium (discount), net	(1,477		)	(1,759		)
Less: deferred financing costs	(283		)	(404		)
Mortgage indebtedness	$	315,603		$	320,869

UNSECURED DEBT
$600 million Unsecured Credit Facility	$	146,500		$	92,500		LIBOR + 1.10%	July 2022
Seven-Year Term Loan - Swapped to fixed	250,000			250,000			2.87%	October 2022
$350.0M 3.95% Guaranteed Notes due 2023	350,000			350,000			3.87%	February 2023
$250.0M 4.10% Guaranteed Notes due 2024	250,000			250,000			4.33%	October 2024
$450.0M 3.95% Guaranteed Notes due 2027	450,000			450,000			4.03%	November 2027
$250.0M 4.55% Guaranteed Notes due 2029	250,000			250,000			4.60%	October 2029
Indenture IA (Preferred Trust I)	27,062			27,062			LIBOR + 1.25%	March 2035
Indenture IB (Preferred Trust I) - Swapped to fixed	25,774			25,774			3.30%	April 2035
Indenture II (Preferred Trust II) - Swapped to fixed	25,774			25,774			3.09%	July 2035
Principal balance outstanding	1,775,110			1,721,110
Plus: original issue premium (discount), net	(3,852		)	(4,096		)
Less: deferred financing costs	(8,606		)	(9,837		)
Total unsecured indebtedness	$	1,762,652		$	1,707,177
Total Debt Obligations	$	2,078,255		$	2,028,046

As of both September 30, 2019 and December 31, 2018, the Company’s weighted-average effective interest rates on its mortgage notes payable was 4.05%.

In addition to the debt described above, the Company utilizes borrowings under its unsecured revolving credit facility (the “Credit Facility”) for general business purposes, including to fund costs of acquisitions, developments and redevelopments of properties, fund share repurchases and to repay other debt. The Credit Facility provides for borrowings of up to $600.0 million and the per annum variable interest rate on borrowings is LIBOR plus 1.10%. The interest rate and facility fee are subject to adjustment upon a change in the Company’s unsecured debt ratings. During the nine months ended September 30, 2019, the weighted-average interest rate on Credit Facility borrowings was 3.5% resulting in $4.2 million of interest expense. As of September 30, 2019, the effective interest rate on Credit Facility borrowings was 3.2%. The Company had no borrowings under the Credit Facility as of and during the nine-months ended September 30, 2018.

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 Parent Company has no material assets other than its investment in the Operating Partnership.

The Company was in compliance with all financial covenants as of September 30, 2019. Certain of the covenants restrict the Company’s ability to obtain alternative sources of capital.

As of September 30, 2019, the Company’s aggregate scheduled principal payments of debt obligations are as follows (in thousands):



2019 (three months remaining)	$	1,926
2020	87,225
2021	15,143
2022	402,832
2023	556,737
Thereafter	1,028,610
Total principal payments	2,092,473
Net unamortized premiums/(discounts)	(5,329		)
Net deferred financing costs	(8,889		)
Outstanding indebtedness	$	2,078,255