| Debt, Net |
Debt, Net
Our debt consisted of the following (dollars in thousands):
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Carrying Value (1) as of |
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Scheduled Maturity |
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September 30,
2016 |
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December 31,
2015 |
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Stated Interest Rates as of |
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as of |
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September 30, 2016 |
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September 30, 2016 |
Mortgage and Other Secured Loans: |
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Fixed rate mortgage loans (2) |
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$ |
154,976 |
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$ |
281,208 |
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3.82% - 7.87% (3) |
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2019-2026 |
Variable rate secured loans |
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13,529 |
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49,792 |
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LIBOR + 1.85% (4) |
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October 2020 |
Total mortgage and other secured loans |
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168,505 |
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331,000 |
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Revolving Credit Facility |
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— |
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43,500 |
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LIBOR + 0.875% to 1.60% |
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May 2019 |
Term Loan Facilities (5) |
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516,812 |
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515,902 |
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LIBOR + 0.90% to 2.60% (6) |
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2019-2022 |
Unsecured Senior Notes |
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3.600%, $350,000 aggregate principal |
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347,024 |
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346,714 |
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3.60% (7) |
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May 2023 |
5.250%, $250,000 aggregate principal |
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246,063 |
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245,731 |
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5.25% (8) |
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February 2024 |
3.700%, $300,000 aggregate principal |
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297,725 |
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297,378 |
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3.70% (9) |
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June 2021 |
5.000%, $300,000 aggregate principal |
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296,279 |
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296,019 |
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5.00% (10) |
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July 2025 |
Unsecured notes payable |
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1,428 |
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1,508 |
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0% (11) |
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2026 |
Total debt, net |
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$ |
1,873,836 |
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$ |
2,077,752 |
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(1) |
The carrying values of our loans other than the Revolving Credit Facility reflect net deferred financing costs of $6.9 million as of September 30, 2016 and $8.0 million as of December 31, 2015.
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(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 $440,000 as of September 30, 2016 and $514,000 as of December 31, 2015.
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(3) |
The weighted average interest rate on our fixed rate mortgage loans was 4.20% as of September 30, 2016.
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(4) |
The interest rate on our variable rate secured loan as of September 30, 2016 was 2.37%.
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(5) |
As of September 30, 2016, we had an additional $150 million in borrowings available to be drawn under a term loan. In addition, we had 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. On October 12, 2016, we repaid a $120.0 million term loan that was scheduled to mature in August 2019.
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(6) |
The weighted average interest rate on these loans was 2.17% as of September 30, 2016.
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(7) |
The carrying value of these notes reflects an unamortized discount totaling $2.0 million as of September 30, 2016 and $2.2 million as of December 31, 2015. The effective interest rate under the notes, including amortization of the issuance costs, was 3.70%.
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(8) |
The carrying value of these notes reflects an unamortized discount totaling $3.5 million as of September 30, 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%.
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(9) |
The carrying value of these notes reflects an unamortized discount totaling $1.8 million as of September 30, 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%.
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(10) The carrying value of these notes reflects an unamortized discount totaling $3.1 million as of September 30, 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%.
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(11) |
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 $483,000 as of September 30, 2016 and $554,000 as of December 31, 2015.
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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 September 30, 2016, we were within the compliance requirements of these financial covenants.
We capitalized interest costs of $1.2 million in the three months ended September 30, 2016, $1.5 million in the three months ended September 30, 2015, $4.3 million in the nine months ended September 30, 2016 and $5.6 million in the nine months ended September 30, 2015.
The following table sets forth information pertaining to the fair value of our debt (in thousands):
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September 30, 2016 |
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December 31, 2015 |
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Carrying |
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Estimated |
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Carrying |
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Estimated |
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Amount |
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Fair Value |
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Amount |
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Fair Value |
Fixed-rate debt |
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Unsecured Senior Notes |
$ |
1,187,091 |
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$ |
1,233,860 |
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$ |
1,185,842 |
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$ |
1,211,658 |
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Other fixed-rate debt |
156,404 |
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162,974 |
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282,716 |
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291,991 |
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Variable-rate debt |
530,341 |
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533,079 |
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609,194 |
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610,987 |
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$ |
1,873,836 |
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$ |
1,929,913 |
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$ |
2,077,752 |
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$ |
2,114,636 |
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