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Debt Obligations | 6 Months Ended
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Jun. 30, 2020
Debt Disclosure [Abstract] |
DEBT OBLIGATIONS | 7. DEBT OBLIGATIONS The following table sets forth information regarding the Company’s consolidated debt obligations outstanding as of June 30, 2020 and December 31, 2019 (in thousands):
| June 30, 2020 |  | December 31, 2019 |  | Effective Interest Rate |  | Maturity Date
MORTGAGE DEBT: |  |  |  |  |  |  |
Two Logan Square | $ | 80,226 |  |  | $ | 81,103 |  |  | 3.98% |  | August 2020
Four Tower Bridge | 9,169 |  |  | 9,291 |  |  | 4.50% |  | February 2021
One Commerce Square (a) | 114,715 |  |  | 116,571 |  |  | 3.64% |  | April 2023
Two Commerce Square (a) | 107,418 |  |  | 108,472 |  |  | 4.51% |  | April 2023
Principal balance outstanding | 311,528 |  |  | 315,437 |  |  |  |  |
Plus: fair market value premium (discount), net | (1,195 | ) |  | (1,383 | ) |  |  |  |
Less: deferred financing costs | (178 | ) |  | (242 | ) |  |  |  |
Mortgage indebtedness | $ | 310,155 |  |  | $ | 313,812 |  |  |  |  |
Assets held for sale - mortgage indebtedness, net (a) | (220,720 | ) |  | — |  |  |  |  |
Total mortgage indebtedness | $ | 89,435 |  |  | $ | 313,812 |  |  |  |  |
UNSECURED DEBT |  |  |  |  |  |  |
$600 million Unsecured Credit Facility | $ | 61,000 |  |  | $ | — |  |  | 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 |  |  | 350,000 |  |  | 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 |  |  | 350,000 |  |  | 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 | 1,889,610 |  |  | 1,828,610 |  |  |  |  |
Plus: original issue premium (discount), net | 11,114 |  |  | 12,090 |  |  |  |  |
Less: deferred financing costs | (9,124 | ) |  | (10,094 | ) |  |  |  |
Total unsecured indebtedness | $ | 1,891,600 |  |  | $ | 1,830,606 |  |  |  |  |
Total Debt Obligations | $ | 1,981,035 |  |  | $ | 2,144,418 |  |  |  |  |
(a) | The properties encumbered by these mortgages were classified as held for sale as of June 30, 2020 and, given that these debt obligations will remain with the properties after the transaction, they are included in "Liabilities related to assets held for sale, net" on the consolidated balance sheets as of June 30, 2020.
In addition to the debt described above, the Company utilizes borrowings under its unsecured revolving credit facility (the “Unsecured Credit Facility”) for general business purposes, including to fund costs of acquisitions, developments and redevelopments of properties, fund share repurchases and repay other debt. The Unsecured 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 six months ended June 30, 2020, the weighted-average interest rate on Unsecured Credit Facility borrowings was 1.6% resulting in a nominal amount of interest expense. As of June 30, 2020, the effective interest rate on Unsecured Credit Facility borrowings was 1.3%. 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 June 30, 2020. Certain of the covenants restrict the Company’s ability to obtain alternative sources of capital. As of June 30, 2020, the Company’s aggregate scheduled principal payments of debt obligations are as follows (in thousands):
2020 (six months remaining) | $ | 83,317 |
2021 | 15,143 |
2022 | 317,332 |
2023 | 556,736 |
2024 | 350,000 |
Thereafter | 878,610 |
Total principal payments | 2,201,138 |
Net unamortized premiums/(discounts) | 9,918 |
Net deferred financing costs | (9,301 | )
Outstanding indebtedness | 2,201,755 |
Assets held for sale - mortgage indebtedness, net (a) | (220,720 | )
Outstanding indebtedness less liabilities of assets held for sale | $ | 1,981,035 |
(a) Included in the table above are principal payments of $3.0 million for 2020, $6.1 million for 2021, $6.3 million for 2022, $206.7 million for 2023, an unamortized discount of $1.2 million and deferred financing costs of $0.2 million related to One Commerce Square and Two Commerce Square, which were classified as held for sale as of June 30, 2020.

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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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