Revolving Credit Facilities and Term Loans

3 Months Ended

Mar. 31, 2015

Revolving Credit Facilities and Term Loans

6.	Revolving Credit Facilities and Term Loans

The following table discloses certain information regarding the Company’s Revolving Credit Facilities (as defined below) and term loans(in millions):

	Carrying Value at March 31, 2015		Weighted-Average Interest Rate^(A) at March 31, 2015		Maturity Date
Unsecured indebtedness:
Unsecured Credit Facility	$	6.3		2.1%	April 2017
PNC Facility		—	N/A		April 2017
Secured indebtedness:
Secured Term Loan		300.0		1.5%	April 2017

(A)	Interest rate on variable-rate debt calculated using the base rate and spreads in effect at March 31, 2015.

Revolving Credit Facilities

The Company maintains an unsecured revolving credit facility with a syndicate of financial institutions, arranged by J.P. Morgan Securities, LLC and Wells Fargo Securities, LLC (the “Unsecured Credit Facility”). The Unsecured Credit Facility provides for borrowings of up to $750 million, if certain financial covenants are maintained, an accordion feature for expansion of availability up to $1.25 billion upon the Company’s request, provided that new or existing lenders agree to the existing terms of the facility and increase their commitment level (Note 15). The Unsecured Credit Facility includes a competitive bid option on periodic interest rates for up to 50% of the facility. The Unsecured Credit Facility also provides for an annual facility fee, which was 20 basis points on the entire facility at March 31, 2015. The Unsecured Credit Facility also allows for certain foreign currency-denominated borrowings. At March 31, 2015, the Company had US$6.3 million of Canadian dollar borrowings outstanding (Note 15).

The Company also maintains a $65 million unsecured revolving credit facility with PNC Bank, National Association (the “PNC Facility” and, together with the Unsecured Credit Facility, the “Revolving Credit Facilities”). The PNC Facility reflects terms consistent with those contained in the Unsecured Credit Facility (Note 15).

The Company’s borrowings under the Revolving Credit Facilities bear interest at variable rates at the Company’s election, based on either (i) the prime rate plus a specified spread (0.15% at March 31, 2015), as defined in the respective facility, or (ii) LIBOR, plus a specified spread (1.15% at March 31, 2015) (Note 15). The specified spreads vary depending on the Company’s long-term senior unsecured debt rating from Moody’s Investors Services (“Moody’s”) and Standard & Poor’s Financial Services LLC (“S&P”). The Company is required to comply with certain covenants under the Revolving Credit Facilities relating to total outstanding indebtedness, secured indebtedness, maintenance of unencumbered real estate assets and fixed charge coverage. The Company was in compliance with these covenants at March 31, 2015.

The Company amended the Revolving Credit Facilities and entered into an unsecured term loan in April 2015 (Note 15).

- 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.

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