| Schedule of debt |
Our debt consisted of the following (dollars in thousands):
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Maximum |
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Availability at |
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Carrying Value at |
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Scheduled Maturity |
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March 31,
2015 |
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March 31,
2015 |
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December 31,
2014 |
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Stated Interest Rates as of |
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as of |
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March 31, 2015 |
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March 31, 2015 |
Mortgage and Other Secured Loans: |
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Fixed rate mortgage loans (1) |
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$ |
385,693 |
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$ |
387,139 |
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3.96% - 10.65% (2) |
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2015-2024 |
Variable rate secured loan |
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36,668 |
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36,877 |
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LIBOR + 2.25% (3) |
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November 2015 |
Total mortgage and other secured loans |
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422,361 |
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424,016 |
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Revolving Credit Facility |
$ |
800,000 |
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164,000 |
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83,000 |
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LIBOR + 0.975% to 1.75% (4) |
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July 2017 |
Term Loan Facilities |
(5) |
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520,000 |
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520,000 |
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LIBOR + 1.10% to 2.60% (6) |
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2015-2019 |
Unsecured Senior Notes |
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3.600% Senior Notes (7) |
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347,560 |
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347,496 |
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3.60% |
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May 2023 |
5.250% Senior Notes (8) |
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245,888 |
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245,797 |
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5.25% |
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February 2024 |
3.700% Senior Notes (9) |
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297,655 |
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297,569 |
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3.70% |
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June 2021 |
Unsecured notes payable |
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1,583 |
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1,607 |
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0% (10) |
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2026 |
4.25% Exchangeable Senior Notes (11) |
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575 |
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572 |
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4.25% |
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(11) |
Total debt, net |
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$ |
1,999,622 |
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$ |
1,920,057 |
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(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 $36,000 as of March 31, 2015 and $42,000 as of December 31, 2014.
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(2) |
Includes a $150.0 million nonrecourse mortgage loan in default secured by two operating properties in Northern Virginia with an aggregate estimated fair value that was less than the loan balance. This loan has an interest rate of 10.65% (including the effect of default interest). Additional disclosure regarding this loan is provided in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of this Quarterly Report on Form 10-Q. The maximum stated interest rate would be 7.87%, excluding the incremental additional interest rate associated with the default rate on the loan in default. The weighted average interest rate on our fixed rate mortgage loans was 8.11% as of March 31, 2015 (or 6.16% excluding the incremental additional interest rate associated with the default rate on the loan in default).
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(3) |
The interest rate on the loan outstanding was 2.42% as of March 31, 2015.
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(4) |
The weighted average interest rate on the Revolving Credit Facility was 1.45% as of March 31, 2015.
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(5) |
We have the ability to borrow an additional $330.0 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.
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(6) |
The weighted average interest rate on these loans was 1.82% as of March 31, 2015.
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(7) |
The carrying value of these notes included a principal amount of $350.0 million and an unamortized discount totaling $2.4 million as of March 31, 2015 and $2.5 million as of December 31, 2014. 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 included a principal amount of $250.0 million and an unamortized discount totaling $4.1 million as of March 31, 2015 and $4.2 million as of December 31, 2014. 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 included a principal amount of $300.0 million and an unamortized discount totaling $2.3 million as of March 31, 2015 and $2.4 million as of December 31, 2014. The effective interest rate under the notes, including amortization of the issuance costs, was 3.85%.
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(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 $628,000 as of March 31, 2015 and $654,000 as of December 31, 2014.
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(11) |
As described further in our 2014 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, 2015 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 $3,000 as of December 31, 2014. 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, 2015 and December 31, 2014 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. On April 20, 2015, we redeemed these notes at 100% of their principal amount.
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| Schedule of the fair value of debt |
The following table sets forth information pertaining to the fair value of our debt (in thousands):
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March 31, 2015 |
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December 31, 2014 |
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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 |
$ |
891,103 |
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$ |
918,074 |
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$ |
890,862 |
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$ |
901,599 |
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4.25% Exchangeable Senior Notes |
575 |
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575 |
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572 |
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575 |
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Other fixed-rate debt |
387,276 |
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350,835 |
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388,746 |
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355,802 |
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Variable-rate debt |
720,668 |
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722,752 |
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639,877 |
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642,091 |
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$ |
1,999,622 |
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$ |
1,992,236 |
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$ |
1,920,057 |
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$ |
1,900,067 |
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