XML 155 R19.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

DEBT OBLIGATIONS | 12 Months Ended
--- | ---
Dec. 31, 2019
Debt Disclosure [Abstract] |
DEBT OBLIGATIONS | 8. DEBT OBLIGATIONS The following table sets forth information regarding the Company’s consolidated debt obligations outstanding at December 31, 2019 and 2018 (in thousands):
| December 31, 2019 |  | December 31, 2018 |  | Effective Interest Rate |  |  |  | Maturity Date
MORTGAGE DEBT: |  |  |  |  |  |  |  |  |
Two Logan Square | $ | 81,103 |  |  | $ | 82,805 |  |  | 3.98% |  |  |  | May 2020
Four Tower Bridge | 9,291 |  |  | 9,526 |  |  | 4.50% |  | (a) |  | February 2021
One Commerce Square | 116,571 |  |  | 120,183 |  |  | 3.64% |  |  |  | April 2023
Two Commerce Square | 108,472 |  |  | 110,518 |  |  | 4.51% |  |  |  | April 2023
Principal balance outstanding | 315,437 |  |  | 323,032 |  |  |  |  |  |  |
Plus: fair market value premium (discount), net | (1,383 | ) |  | (1,759 | ) |  |  |  |  |  |
Less: deferred financing costs | (242 | ) |  | (404 | ) |  |  |  |  |  |
Mortgage indebtedness | $ | 313,812 |  |  | $ | 320,869 |  |  |  |  |  |  |
UNSECURED DEBT |  |  |  |  |  |  |  |  |
$600 million Unsecured Credit Facility | $ | — |  |  | $ | 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
$350.0M 4.10% Guaranteed Notes due 2024 | 350,000 |  |  | 250,000 |  |  | 3.78% |  |  |  | October 2024
$450.0M 3.95% Guaranteed Notes due 2027 | 450,000 |  |  | 450,000 |  |  | 4.03% |  |  |  | November 2027
$350.0M 4.55% Guaranteed Notes due 2029 | 350,000 |  |  | 250,000 |  |  | 4.30% |  |  |  | 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) | 25,774 |  |  | 25,774 |  |  | LIBOR + 1.25% |  |  |  | July 2035
Principal balance outstanding | 1,828,610 |  |  | 1,721,110 |  |  |  |  |  |  |
Plus: original issue premium (discount), net | 12,090 |  |  | (4,096 | ) |  |  |  |  |  |
Less: deferred financing costs | (10,094 | ) |  | (9,837 | ) |  |  |  |  |  |
Total unsecured indebtedness | $ | 1,830,606 |  |  | $ | 1,707,177 |  |  |  |  |  |  |
Total Debt Obligations | $ | 2,144,418 |  |  | $ | 2,028,046 |  |  |  |  |  |  |
(a) | Assumed upon acquisition of the related property on January 5, 2018. The interest rate reflects the market rate at the time of acquisition.
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. On October 10, 2019, the Company completed underwriting offerings of an additional $100.0 million of its 4.10% Guaranteed Notes due 2024 (the "2024 Notes") and an additional $100.0 million of its 4.55% Guaranteed Notes due 2029 (the "2029 Notes"). The additional 2024 Notes were priced at 106.315% of their face amount and the additional 2029 Notes were priced at 110.058% of their face amount. The additional 2024 Notes and additional 2029 Notes have been reflected net of premiums of $5.3 million and $8.5 million, respectively, in the consolidated balance sheet as of December 31, 2019. On December 13, 2018, the Company amended and restated its $250.0 million seven-year term loan maturing October 8, 2022. In connection with the terms of the amendment, the credit spread on the term loan decreased from LIBOR plus 1.80% to LIBOR plus 1.25%, reducing the Company’s effective interest rate by 0.55%. Through a series of interest rate swaps, the $250.0 million outstanding balance of the term loan has a fixed interest rate of 2.87%. On July 17, 2018, the Company amended and restated its revolving credit agreement (as amended and restated, the “Unsecured Credit Facility”). The amendment and restatement, among other things: (i) maintained the total commitment of the revolving line of credit of $600.0 million; (ii) extended the maturity date from May 15, 2019 to July 15, 2022, with two six-month extensions at the Company’s election subject to specified conditions and subject to payment of an extension fee; (iii) reduced the interest rate margins applicable to Eurodollar loans; (iv) provided for an additional interest rate option based on a floating LIBOR rate; and (v) removed the covenant requiring the Company to maintain a minimum net worth. In connection with the amendments, the Company capitalized $2.7 million in financing costs, which will be amortized through the July 15, 2022 maturity date. At the Company's option, loans outstanding under the Unsecured Credit Facility will bear interest at a rate per annum equal to (1) LIBOR plus between 0.775% and 1.45%, based on the Company's credit rating, or (2) a base rate equal to the greatest of (a) the Administrative Agent's prime rate, (b) the Federal Funds rate plus 0.5% or (c) LIBOR for a one month period plus 1.00%, in each case, plus a margin ranging from 0.0% to 0.45% based on the Company's credit rating. The Unsecured Credit Facility also contains a competitive bid option that allows banks that are part of the lender consortium to bid to make loan advances to the Company at a reduced interest rate. In addition, the Company is also obligated to pay (1) in quarterly installments a facility fee on the total commitment at a rate per annum ranging from 0.125% to 0.30% based on the Company's credit rating and (2) an annual fee on the undrawn amount of each letter or credit equal to the LIBOR Margin. Based on the Company's current credit rating, the LIBOR margin is 1.10% and the facility fee is 0.25%. The terms of the Unsecured Credit Facility require that the Company maintain customary financial and other covenants, including: (i) a fixed charge coverage ratio greater than or equal to 1.5 to 1.00; (ii) a leverage ratio less than or equal to 0.60 to 1.00, subject to specified exceptions; (iii) a ratio of unsecured indebtedness to unencumbered asset value less than or equal to 0.60 to 1.00, subject to specified exceptions; (iv) a ratio of secured indebtedness to total asset value less than or equal to 0.40 to 1.00; and (v) a ratio of unencumbered cash flow to interest expense on unsecured debt greater than 1.75 to 1.00. In addition, the Unsecured Credit Facility restricts payments of dividends and distributions on shares in excess of 95% of the Company's funds from operations (FFO) except to the extent necessary to enable the Company to continue to qualify as a REIT for Federal income tax purposes. The Company had no borrowings under the Unsecured Credit Facility as of December 31, 2019. During the twelve months ended December 31, 2019, the weighted-average interest rate on Unsecured Credit Facility borrowings was 3.52% resulting in $4.4 million of interest expense. As of December 31, 2018, the Company had $92.5 million borrowings under the Credit Facility. During the twelve months ended December 31, 2018, the weighted-average interest rate on Unsecured Credit Facility borrowings was 3.24% resulting in $1.0 million of interest expense. The Company was in compliance with all financial covenants as of December 31, 2019 and 2018. Management continuously monitors the Company’s compliance with and anticipated compliance with the covenants. Certain of the covenants restrict the Company’s ability to obtain alternative sources of capital. While the Company currently believes it will remain in compliance with its covenants, in the event that the economy deteriorates in the future, the Company may not be able to remain in compliance with such covenants, in which case a default would result absent a lender waiver. As of December 31, 2019, the Company’s aggregate scheduled principal payments of debt obligations, excluding amortization of discounts and premiums, are as follows (in thousands):
2020 | $ | 87,226 |
2021 | 15,143 |
2022 | 256,332 |
2023 | 556,736 |
2024 | 350,000 |
Thereafter | 878,610 |
Total principal payments | 2,144,047 |
Net unamortized premiums/(discounts) | 10,707 |
Net deferred financing costs | (10,336 | )
Outstanding indebtedness | $ | 2,144,418 |

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration