Quarterly report pursuant to Section 13 or 15(d)

Debt, Net

v3.4.0.3
Debt, Net
3 Months Ended
Mar. 31, 2016
Debt Disclosure [Abstract]  
Debt, Net
Debt, Net
 
Our debt consisted of the following (dollars in thousands):
 
 
 
 
 
 
 
 
 
 
 
Carrying Value (1) as of
 
 
 
Scheduled Maturity
 
 
March 31,
2016
 
December 31,
2015
 
Stated Interest Rates as of
 
as of
 
 
 
 
March 31, 2016
 
March 31, 2016
Mortgage and Other Secured Loans:
 
 

 
 

 
 
 
 
Fixed rate mortgage loans (2)
 
$
279,782

 
$
281,208

 
3.96% - 7.87% (3)
 
2016-2024
Variable rate secured loans
 
49,488

 
49,792

 
LIBOR + 1.85% - 2.00% (4)
 
2016-2020
Total mortgage and other secured loans
 
329,270

 
331,000

 
 
 
 
Revolving Credit Facility
 
107,000

 
43,500

 
LIBOR + 0.875% to 1.60% (5)
 
May 2019
Term Loan Facilities (6)
 
516,205

 
515,902

 
LIBOR + 0.90% to 2.60% (7)
 
2019-2022
Unsecured Senior Notes
 
 
 
 
 
 
 
 
3.600%, $350,000 aggregate principal
 
346,817

 
346,714

 
3.60% (8)
 
May 2023
5.250%, $250,000 aggregate principal
 
245,840

 
245,731

 
5.25% (9)
 
February 2024
3.700%, $300,000 aggregate principal
 
297,493

 
297,378

 
3.70% (10)
 
June 2021
5.000%, $300,000 aggregate principal
 
296,105

 
296,019

 
5.00% (11)
 
July 2025
Unsecured notes payable
 
1,482

 
1,508

 
0% (12)
 
2026
Total debt, net
 
$
2,140,212

 
$
2,077,752

 
 
 
 

(1)
The carrying values of our loans other than the Revolving Credit Facility reflect net deferred financing costs of $7.5 million as of March 31, 2016 and $8.0 million as of December 31, 2015.
(2)  
Several of the fixed rate mortgages carry interest rates that were above or below market rates upon assumption and therefore were recorded at their fair value based on applicable effective interest rates.  The carrying values of these loans reflect net unamortized premiums totaling $489,000 as of March 31, 2016 and $514,000 as of December 31, 2015.
(3)
The weighted average interest rate on our fixed rate mortgage loans was 6.08% as of March 31, 2016.
(4) 
The weighted average interest rate on our variable rate secured loans was 2.40% as of March 31, 2016.
(5)
The weighted average interest rate on the Revolving Credit Facility was 1.60% as of March 31, 2016.
(6)  
An additional $150 million in borrowings is available to be drawn under a term loan. In addition, we have the ability to borrow an additional $430.0 million in the aggregate under these term loan facilities, provided that there is no default under the facilities and subject to the approval of the lenders.
(7) 
The weighted average interest rate on these loans was 2.08% as of March 31, 2016.
(8)
The carrying value of these notes reflects an unamortized discount totaling $2.2 million as of March 31, 2016 and December 31, 2015.  The effective interest rate under the notes, including amortization of the issuance costs, was 3.70%
(9)
The carrying value of these notes reflects an unamortized discount totaling $3.7 million as of March 31, 2016 and $3.8 million as of December 31, 2015.  The effective interest rate under the notes, including amortization of the issuance costs, was 5.49%
(10)
The carrying value of these notes reflects an unamortized discount totaling $2.0 million as of March 31, 2016 and $2.1 million as of December 31, 2015.  The effective interest rate under the notes, including amortization of the issuance costs, was 3.85%
(11) The carrying value of these notes reflects an unamortized discount totaling $3.2 million as of March 31, 2016 and $3.3 million as of December 31, 2015.  The effective interest rate under the notes, including amortization of the issuance costs, was 5.15%.
(12) 
These notes carry interest rates that were below market rates upon assumption and therefore were recorded at their fair value based on applicable effective interest rates.  The carrying value of these notes reflects an unamortized discount totaling $530,000 as of March 31, 2016 and $554,000 as of December 31, 2015.
 
All debt is owed by the Operating Partnership. While COPT is not directly obligated by any debt, it has guaranteed the Operating Partnership’s Revolving Credit Facility, Term Loan Facilities and Unsecured Senior Notes.

Certain of our debt instruments require that we comply with a number of restrictive financial covenants.  As of March 31, 2016, we were within the compliance requirements of these financial covenants.

We capitalized interest costs of $1.8 million in the three months ended March 31, 2016 and $2.1 million in the three months ended March 31, 2015.

The following table sets forth information pertaining to the fair value of our debt (in thousands): 
 
March 31, 2016
 
December 31, 2015
 
Carrying
 
Estimated
 
Carrying
 
Estimated
 
Amount
 
Fair Value
 
Amount
 
Fair Value
Fixed-rate debt
 

 
 

 
 

 
 

Unsecured Senior Notes
$
1,186,255

 
$
1,216,295

 
$
1,185,842

 
$
1,211,658

Other fixed-rate debt
281,264

 
289,254

 
282,716

 
291,991

Variable-rate debt
672,693

 
677,203

 
609,194

 
610,987

 
$
2,140,212

 
$
2,182,752

 
$
2,077,752

 
$
2,114,636