Quarterly report pursuant to Section 13 or 15(d)

DEBT FINANCING

v3.21.2
DEBT FINANCING
 6 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
DEBT FINANCING DEBT FINANCING
The Company's outstanding debt as of June 30, 2021 and December 31, 2020 is summarized as follows (dollars in thousands):
Interest Rate(1)
June 30, 2021 December 31, 2020
Credit Facility:
Revolving line of credit 1.40% $ 265,500  $ 174,000 
Term loan A 3.74% 125,000  125,000 
Term loan B 2.91% 250,000  250,000 
Term loan C 2.91% 225,000  225,000 
Term loan D 3.57% 175,000  175,000 
2023 Term loan facility 2.83% 175,000  175,000 
2028 Term loan facility 4.62% 75,000  75,000 
2029 Term loan facility 4.27% 100,000  100,000 
2029 Senior Unsecured Notes 3.98% 100,000  100,000 
2030 Senior Unsecured Notes 2.99% 150,000  150,000 
August 2031 Senior Unsecured Notes 4.08% 50,000  50,000 
2032 Senior Unsecured Notes 3.09% 100,000  100,000 
2033 Senior Unsecured Notes 3.10% 55,000  — 
Fixed rate mortgages payable 4.24% 218,041  223,614 
Total principal 2,063,541  1,922,614 
Unamortized debt issuance costs and debt premium, net
 (4,968) (5,643)
Total debt $ 2,058,573  $ 1,916,971 
(1)Represents the effective interest rate as of June 30, 2021. Effective interest rate incorporates the stated rate plus the impact of interest rate cash flow hedges and discount and premium amortization, if applicable. For the revolving line of credit, the effective interest rate excludes fees for unused borrowings.
As of June 30, 2021, the Company's unsecured credit facility provided for total borrowings of $1.275 billion (the "credit facility"). The credit facility consists of the following components: (i) a revolving line of credit (the "Revolver") which provides for a total borrowing commitment up to $500.0 million, under which the Company may borrow, repay and re-borrow amounts, (ii) a $125.0 million tranche A term loan facility (the "Term Loan A"), (iii) a $250.0 million tranche B term loan facility (the "Term Loan B"), (iv) a $225.0 million tranche C term loan facility (the "Term Loan C"), and (v) a $175.0 million tranche D term loan facility (the "Term Loan D"). As of June 30, 2021, the Company had an expansion option under the credit facility, which, if exercised in full, would provide for a total credit facility of $1.750 billion.
As of June 30, 2021, the Company had outstanding letters of credit totaling $5.7 million and would have had the capacity to borrow remaining Revolver commitments of $228.8 million while remaining in compliance with the credit facility's financial covenants. At June 30, 2021, the Company was in compliance with all such covenants.
As discussed in Note 13, in July 2021, the Company received commitments from a syndicated group of lenders to partially exercise the expansion option under its unsecured credit facility for a $100.0 million tranche E term loan facility.
2026, May 2031 and 2033 Senior Unsecured Notes
On May 3, 2021, the operating partnership as issuer, and the Company, entered into a Note Purchase Agreement (the "Note Purchase Agreement") which provides for the private placement of $35.0 million of 2.16% senior unsecured notes due May 4, 2026 (the "2026 Notes"), $90.0 million of 3.00% senior unsecured notes due May 4, 2031 (the "May 2031 Notes") and $55.0 million of 3.10% senior unsecured notes due May 4, 2033 (the "2033 Notes" and together with the 2026 Notes and May 2031 Notes the "Senior Unsecured Notes") to certain institutional investors. The Senior Unsecured Notes are governed by the Note Purchase Agreement and on May 26, 2021 the operating partnership issued the 2033 Notes. As discussed in Note 13, on July 26, 2021 the operating partnership issued the 2026 Notes and the May 2031 Notes.
Interest is paid semiannually, on May 31st and November 30th of each year, commencing on November 30, 2021. The Senior Unsecured Notes are senior unsecured obligations of the Company and are jointly and severally guaranteed by certain of the Company's subsidiaries, as subsidiary guarantors. The Senior Unsecured Notes rank pari passu with the credit facility, 2023 Term Loan Facility, 2028 Term Loan Facility, 2029 Term Loan Facility, 2029 Senior Unsecured Notes, 2030 Senior Unsecured Notes, August 2031 Senior Unsecured Notes and 2032 Senior Unsecured Notes. The Note Purchase Agreement contains financial covenants that are substantially similar to those of the Company's credit facility. In addition, the terms of the Note Purchase Agreement contain customary affirmative and negative covenants that, among other things, limit the Company's ability to make distributions or certain investments, incur debt, incur liens and enter into certain transactions.
Fixed Rate Mortgage Payable
As discussed in Note 13, on July 9, 2021, the Company entered into an agreement with a single lender for an $88.0 million debt financing secured by a first lien on eight of the Company's self storage properties. This interest-only loan matures in July 2028 and has a fixed interest rate of 2.77%.
Future Debt Obligations
Based on existing debt agreements in effect as of June 30, 2021, the scheduled principal and maturity payments for the Company's outstanding borrowings are presented in the table below (in thousands):
Year Ending December 31, Scheduled Principal and Maturity Payments Amortization of Premium and Unamortized Debt Issuance Costs Total
Remainder of 2021 $ 2,096  $ (843) $ 1,253 
2022 4,374  (1,689) 2,685 
2023 376,813  (1,333) 375,480 
2024 537,464  (960) 536,504 
2025 227,185  (384) 226,801 
2026 177,322  (260) 177,062 
Thereafter 738,287  501  738,788 
$ 2,063,541  $ (4,968) $ 2,058,573