Quarterly report pursuant to Section 13 or 15(d)

Debt, Net

v3.22.1
Debt, Net
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Debt, Net Debt, Net
 
Our debt consisted of the following (dollars in thousands):
  Carrying Value (1) as of
  March 31,
2022		 December 31, 2021 March 31, 2022
  Stated Interest Rates Scheduled Maturity
Mortgage and Other Secured Debt:        
Fixed rate mortgage debt $ 86,331  $ 86,960 
3.82% - 4.62% (2)
 2023-2026
Variable rate secured debt 33,636  33,667 
LIBOR + 1.45% to 1.55% (3)
 2025-2026
Total mortgage and other secured debt 119,967  120,627     
Revolving Credit Facility (4) 160,000  76,000 
LIBOR + 0.775% to 1.45% (5)
 March 2023 (4)
Term Loan Facility (6) 99,855  299,420 
LIBOR + 1.00% to 1.65% (7)
 December 2022
Unsecured Senior Notes
2.25%, $400,000 aggregate principal
 395,751  395,491 
2.25% (8)
 March 2026
2.00%, $400,000 aggregate principal
 396,631  396,512 
2.00% (9)
 January 2029
2.75%, $600,000 aggregate principal
 589,323  589,060 
2.75% (10)
 April 2031
2.90%, $400,000 aggregate principal
 394,542  394,441 
2.90% (11)
 December 2033
Unsecured note payable 715  753 
0% (12)
 May 2026
Total debt, net $ 2,156,784  $ 2,272,304     
(1)The carrying values of our debt other than the Revolving Credit Facility reflect net deferred financing costs of $5.1 million as of March 31, 2022 and $5.8 million as of December 31, 2021.
(2)The weighted average interest rate on our fixed rate mortgage debt was 4.07% as of March 31, 2022.
(3)The weighted average interest rate on our variable rate secured debt was 1.75% as of March 31, 2022.
(4)The facility matures in March 2023, 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. In connection with this facility, we also have the ability to borrow up to $500.0 million under new term loans from the facility’s lender group provided that there is no default under the facility and subject to the approval of the lenders.
(5)The weighted average interest rate on the Revolving Credit Facility was 1.38% as of March 31, 2022.
(6)We repaid $200.0 million of this loan during the three months ended March 31, 2022.
(7)The interest rate on this loan was 1.48% as of March 31, 2022.
(8)The carrying value of these notes reflects an unamortized discount totaling $3.4 million as of March 31, 2022 and $3.6 million as of December 31, 2021. The effective interest rate under the notes, including amortization of the issuance costs, was 2.48%.
(9)The carrying value of these notes reflects an unamortized discount totaling $2.4 million as of March 31, 2022 and $2.5 million as of December 31, 2021. The effective interest rate under the notes, including amortization of the issuance costs, was 2.09%.
(10)The carrying value of these notes reflects an unamortized discount totaling $9.2 million as of March 31, 2022 and $9.5 million as of December 31, 2021. The effective interest rate under the notes, including amortization of the issuance costs, was 2.94%.
(11)The carrying value of these notes reflects an unamortized discount totaling $4.5 million as of March 31, 2022 and December 31, 2021. The effective interest rate under the notes, including amortization of the issuance costs, was 3.01%.
(12)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 $96,000 as of March 31, 2022 and $108,000 as of December 31, 2021.
 
All debt is owed by the Operating Partnership. While COPT is not directly obligated by any debt, it has guaranteed COPLP’s Revolving Credit Facility, Term Loan Facility and Unsecured Senior Notes.

Certain of our debt instruments require that we comply with a number of restrictive financial covenants.  As of March 31, 2022, we were compliant with these financial covenants.
Our debt matures on the following schedule (in thousands):
Year Ending December 31, March 31, 2022
2022 (1) $ 102,559 
2023 178,953 
2024 29,983 
2025 23,717 
2026 446,300 
Thereafter 1,400,000 
Total $ 2,181,512  (2)
(1)Represents the nine months ending December 31, 2022.
(2)Represents scheduled principal amortization and maturities only and therefore excludes net discounts and deferred financing costs of $24.7 million.

We capitalized interest costs of $1.5 million in the three months ended March 31, 2022 and $1.8 million in the three months ended March 31, 2021.

The following table sets forth information pertaining to the fair value of our debt (in thousands): 
  March 31, 2022 December 31, 2021
  Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value
Fixed-rate debt        
Unsecured Senior Notes $ 1,776,247  $ 1,779,846  $ 1,775,504  $ 1,809,950 
Other fixed-rate debt 87,046  84,608  87,713  87,339 
Variable-rate debt 293,491  293,729  409,087  409,639 
  $ 2,156,784  $ 2,158,183  $ 2,272,304  $ 2,306,928