Quarterly report pursuant to Section 13 or 15(d)

Debt, Net

v3.10.0.1
Debt, Net
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Debt, Net
Debt, Net
 
Our debt consisted of the following (dollars in thousands):
 
 
Carrying Value (1) as of
 
 
 
 
 
 
June 30,
2018
 
December 31,
2017
 
Stated Interest Rates as of
 
Scheduled Maturity as of
 
 
 
 
June 30, 2018
 
June 30, 2018
Mortgage and Other Secured Debt:
 
 

 
 

 
 
 
 
Fixed rate mortgage debt (2)
 
$
148,950

 
$
150,723

 
3.82% - 7.87% (3)
 
2019-2026
Variable rate secured debt
 
12,943

 
13,115

 
LIBOR + 1.85% (4)
 
October 2020
Total mortgage and other secured debt
 
161,893

 
163,838

 
 
 
 
Revolving Credit Facility
 
170,000

 
126,000

 
LIBOR + 0.875% to 1.60% (5)
 
May 2019 (6)
Term Loan Facilities (7)
 
348,185

 
347,959

 
LIBOR + 0.90% to 1.85% (8)
 
2020-2022
Unsecured Senior Notes
 
 
 
 
 
 
 
 
3.600%, $350,000 aggregate principal
 
347,767

 
347,551

 
3.60% (9)
 
May 2023
5.250%, $250,000 aggregate principal
 
246,887

 
246,645

 
5.25% (10)
 
February 2024
3.700%, $300,000 aggregate principal
 
298,567

 
298,322

 
3.70% (11)
 
June 2021
5.000%, $300,000 aggregate principal
 
296,918

 
296,731

 
5.00% (12)
 
July 2025
Unsecured note payable
 
1,228

 
1,287

 
0% (13)
 
May 2026
Total debt, net
 
$
1,871,445

 
$
1,828,333

 
 
 
 

(1)
The carrying values of our debt other than the Revolving Credit Facility reflect net deferred financing costs of $4.5 million as of June 30, 2018 and $5.0 million as of December 31, 2017.
(2)  
Certain of the fixed rate mortgages carry interest rates that, upon assumption, were above or below market rates 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 $315,000 as of June 30, 2018 and $349,000 as of December 31, 2017.
(3)
The weighted average interest rate on our fixed rate mortgage debt was 4.18% as of June 30, 2018.
(4) 
The interest rate on our variable rate secured debt was 3.83% as of June 30, 2018.
(5)
The weighted average interest rate on the Revolving Credit Facility was 3.19% as of June 30, 2018.
(6)
The facility matures in May 2019, with the ability for us to further extend such maturity by two six-month periods at our option, provided that there is no default under the facility and we pay an extension fee of 0.075% of the total availability under the facility for each extension period.
(7)  
As of June 30, 2018, we have the ability to borrow an additional $350.0 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.
(8) 
The weighted average interest rate on these loans was 3.35% as of June 30, 2018.
(9)
The carrying value of these notes reflects an unamortized discount totaling $1.5 million as of June 30, 2018 and $1.7 million as of December 31, 2017.  The effective interest rate under the notes, including amortization of the issuance costs, was 3.70%
(10)
The carrying value of these notes reflects an unamortized discount totaling $2.8 million as of June 30, 2018 and $3.0 million as of December 31, 2017.  The effective interest rate under the notes, including amortization of the issuance costs, was 5.49%
(11)
The carrying value of these notes reflects an unamortized discount totaling $1.1 million as of June 30, 2018 and $1.3 million as of December 31, 2017.  The effective interest rate under the notes, including amortization of the issuance costs, was 3.85%
(12) The carrying value of these notes reflects an unamortized discount totaling $2.6 million as of June 30, 2018 and $2.7 million as of December 31, 2017.  The effective interest rate under the notes, including amortization of the issuance costs, was 5.15%.
(13) 
This note carries an interest rate that, upon assumption, was below market rates and it therefore was recorded at its fair value based on applicable effective interest rates.  The carrying value of this note reflects an unamortized discount totaling $333,000 as of June 30, 2018 and $373,000 as of December 31, 2017.
 
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 June 30, 2018, we were within the compliance requirements of these financial covenants.

We capitalized interest costs of $1.4 million in the three months ended June 30, 2018, $1.6 million in the three months ended June 30, 2017, $2.8 million in the six months ended June 30, 2018 and $3.1 million in the six months ended June 30, 2017.

The following table sets forth information pertaining to the fair value of our debt (in thousands): 
 
June 30, 2018
 
December 31, 2017
 
Carrying
 
Fair
 
Carrying
 
Fair
 
Amount
 
Value
 
Amount
 
Value
Fixed-rate debt
 

 
 

 
 

 
 

Unsecured Senior Notes
$
1,190,139

 
$
1,220,040

 
$
1,189,249

 
$
1,229,398

Other fixed-rate debt
150,178

 
148,257

 
152,010

 
152,485

Variable-rate debt
531,128

 
530,968

 
487,074

 
485,694

 
$
1,871,445

 
$
1,899,265

 
$
1,828,333

 
$
1,867,577