Quarterly report pursuant to Section 13 or 15(d)

Debt (Tables)

v2.4.0.8
Debt (Tables)
3 Months Ended
Mar. 31, 2014
Debt Disclosure [Abstract]  
Schedule of debt
Our debt consisted of the following (dollars in thousands):
 
Maximum
 
 
 
 
 
 
 
 
 
 Availability at
 
Carrying Value at
 
 
 
Scheduled Maturity
 
March 31,
2014
 
March 31,
2014
 
December 31,
2013
 
Stated Interest Rates as of
 
as of
 
 
 
 
March 31, 2014
 
March 31, 2014
Mortgage and Other Secured Loans:
 

 
 

 
 

 
 
 
 
Fixed rate mortgage loans (1)
(2)
 
$
679,260

 
$
675,060

 
3.96% - 7.87% (3)
 
2014-2024
Variable rate secured loan


 
37,491

 
37,691

 
LIBOR + 2.25% (4)
 
November 2015
Total mortgage and other secured loans
 

 
716,751

 
712,751

 
 
 
 
Revolving Credit Facility (5)
$
800,000

 

 

 
LIBOR + 0.975% to 1.75%
 
July 2017
Term Loan Facilities
(6)
 
620,000

 
620,000

 
LIBOR + 1.10% to 2.60% (7)
 
2015-2019
Unsecured Senior Notes
 
 
 
 
 
 
 
 
 
3.600% Senior Notes (8)


 
347,306

 
347,244

 
3.60%
 
May 2023
5.250% Senior Notes (9)


 
245,532

 
245,445

 
5.25%
 
February 2024
Unsecured notes payable


 
1,677

 
1,700

 
0% (10)
 
2026
4.25% Exchangeable Senior Notes (11)


 
565

 
563

 
4.25%
 
April 2030
Total debt, net
 

 
$
1,931,831

 
$
1,927,703

 
 
 
 

(1)  
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 $62,000 as of March 31, 2014 and $69,000 as of December 31, 2013.
(2)
Includes $19.8 million balance on construction loans with maximum available borrowings of $26.2 million.
(3)
The weighted average interest rate on these loans was 6.12% as of March 31, 2014.
(4) 
The interest rate on the loan outstanding was 2.41% as of March 31, 2014.
(5)
No borrowings were outstanding on this facility during the three months ended March 31, 2014.
(6)  
We have the ability to borrow an aggregate of an additional $180.0 million 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 1.78% as of March 31, 2014.
(8)
The carrying value of these notes included a principal amount of $350.0 million and an unamortized discount totaling $2.7 million as of March 31, 2014 and $2.8 million as of December 31, 2013.  The effective interest rate under the notes, including amortization of the issuance costs, was 3.70%
(9)
The carrying value of these notes included a principal amount of $250.0 million and an unamortized discount totaling $4.5 million as of March 31, 2014 and $4.6 million as of December 31, 2013.  The effective interest rate under the notes, including amortization of the issuance costs, was 5.49%
(10) 
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 $734,000 as of March 31, 2014 and $761,000 as of December 31, 2013.
(11) 
As described further in our 2013 Annual Report on Form 10-K, these notes have an exchange settlement feature that provides that the notes may, under certain circumstances, be exchangeable for cash and, at COPLP’s discretion, COPT common shares at an exchange rate (subject to adjustment) of 20.8513 shares per one thousand dollar principal amount of the notes (exchange rate is as of March 31, 2014 and is equivalent to an exchange price of $47.96 per common share).  The carrying value of these notes included a principal amount of $575,000 and an unamortized discount totaling $10,000 as of March 31, 2014 and $12,000 as of December 31, 2013.  The effective interest rate under the notes, including amortization of the issuance costs, was 6.05%.  Because the closing price of our common shares as of March 31, 2014 and December 31, 2013 was less than the exchange price per common share applicable to these notes, the if-converted value of the notes did not exceed the principal amount.  The table below sets forth interest expense recognized on these notes before deductions for amounts capitalized (in thousands):
 
 
 
For the Three Months Ended March 31,
 
 
2014
 
2013
Interest expense at stated interest rate
 
$
6

 
$
2,304

Interest expense associated with amortization of discount
 
3

 
864

Total
 
$
9

 
$
3,168

Schedule of the fair value of debt
The following table sets forth information pertaining to the fair value of our debt (in thousands): 
 
March 31, 2014
 
December 31, 2013
 
Carrying
 
Estimated
 
Carrying
 
Estimated
 
Amount
 
Fair Value
 
Amount
 
Fair Value
Fixed-rate debt
 

 
 

 
 

 
 

Unsecured Senior Notes
$
592,838

 
$
584,178

 
$
592,689

 
$
575,374

4.25% Exchangeable Senior Notes
565

 
575

 
563

 
575

Other fixed-rate debt
680,937

 
668,949

 
676,760

 
650,997

Variable-rate debt
657,491

 
657,420

 
657,691

 
657,527

 
$
1,931,831

 
$
1,911,122

 
$
1,927,703

 
$
1,884,473