Quarterly report pursuant to Section 13 or 15(d)

Debt, Net

v3.22.2.2
Debt, Net
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Debt, Net Debt, Net
 
Our debt consisted of the following (dollars in thousands):
  Carrying Value (1) as of
  September 30,
2022		 December 31, 2021 September 30, 2022
  Stated Interest Rates Scheduled Maturity
Mortgage and Other Secured Debt:        
Fixed rate mortgage debt $ 85,077  $ 86,960 
3.82% - 4.62% (2)
 2023-2026
Variable rate secured debt 33,424  33,667 
LIBOR + 1.45% to 1.55% (3)
 2025-2026
Total mortgage and other secured debt 118,501  120,627     
Revolving Credit Facility (4) 273,000  76,000 
LIBOR + 0.775% to 1.45% (5)
 March 2023 (4)
Term Loan Facility (6) 99,953  299,420 
LIBOR + 1.00% to 1.65% (7)
 December 2022
Unsecured Senior Notes
2.25%, $400,000 aggregate principal
 396,275  395,491 
2.25% (8)
 March 2026
2.00%, $400,000 aggregate principal
 396,869  396,512 
2.00% (9)
 January 2029
2.75%, $600,000 aggregate principal
 589,854  589,060 
2.75% (10)
 April 2031
2.90%, $400,000 aggregate principal
 394,745  394,441 
2.90% (11)
 December 2033
Unsecured note payable 637  753 
0% (12)
 May 2026
Total debt, net $ 2,269,834  $ 2,272,304     
(1)The carrying values of our debt other than the Revolving Credit Facility reflect net deferred financing costs of $4.6 million as of September 30, 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 September 30, 2022.
(3)The weighted average interest rate on our variable rate secured debt as of September 30, 2022 was 4.08%, or 2.45% including the effect of interest rate swaps that hedge the risk of interest rate changes on this debt.
(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. Refer to subsequent events disclosure pertaining to the facility in Note 19.
(5)The weighted average interest rate on the Revolving Credit Facility was 3.94% as of September 30, 2022.
(6)We repaid $200.0 million of this loan during the nine months ended September 30, 2022. Refer to subsequent events disclosure pertaining to this loan in Note 19.
(7)The interest rate on this loan was 3.81% as of September 30, 2022.
(8)The carrying value of these notes reflects an unamortized discount totaling $3.0 million as of September 30, 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 $2.2 million as of September 30, 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 $8.8 million as of September 30, 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 $4.3 million as of September 30, 2022 and $4.5 million as of 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 $74,000 as of September 30, 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 September 30, 2022, we were compliant with these financial covenants.
Our scheduled debt maturities as of September 30, 2022 were as follows (in thousands):
Year Ending December 31, September 30, 2022
2022 (1) $ 100,864 
2023 291,954 
2024 29,983 
2025 23,717 
2026 446,300 
Thereafter 1,400,000 
Total $ 2,292,818  (2)
(1)Represents the three months ending December 31, 2022.
(2)Represents scheduled principal amortization and maturities only and therefore excludes net discounts and deferred financing costs of $23.0 million.

We capitalized interest costs of $2.0 million in the three months ended September 30, 2022, $1.8 million in the three months ended September 30, 2021, $4.9 million in the nine months ended September 30, 2022 and $5.3 million in the nine months ended September 30, 2021.

The following table sets forth information pertaining to the fair value of our debt (in thousands): 
  September 30, 2022 December 31, 2021
  Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value
Fixed-rate debt        
Unsecured Senior Notes $ 1,777,743  $ 1,711,298  $ 1,775,504  $ 1,809,950 
Other fixed-rate debt 85,714  80,197  87,713  87,339 
Variable-rate debt 406,377  404,871  409,087  409,639 
  $ 2,269,834  $ 2,196,366  $ 2,272,304  $ 2,306,928