Quarterly report pursuant to Section 13 or 15(d)

DEBT FINANCING

v3.23.3
DEBT FINANCING
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
DEBT FINANCING DEBT FINANCING
The Company's outstanding debt as of September 30, 2023 and December 31, 2022 is summarized as follows (dollars in thousands):
Interest Rate(1)
September 30, 2023 December 31, 2022
Credit Facility:
Revolving line of credit 6.70  % $ 812,000  $ 496,000 
Term loan A —  % —  125,000 
Term loan B 3.28  % 275,000  250,000 
Term loan C 4.07  % 325,000  225,000 
Term loan D 4.05  % 275,000  175,000 
 Term loan E 4.93  % 130,000  125,000 
2023 Term loan facility —  % —  175,000 
2028 Term loan facility 4.62  % 75,000  75,000 
April 2029 Term loan facility 4.27  % 100,000  100,000 
June 2029 Term loan facility 5.37  % 285,000  285,000 
2026 Senior Unsecured Notes 2.16  % 35,000  35,000 
2028 Senior Unsecured Notes 5.75  % 120,000  — 
2029 Senior Unsecured Notes 3.98  % 100,000  100,000 
August 2030 Senior Unsecured Notes 2.99  % 150,000  150,000 
November 2030 Senior Unsecured Notes 2.72  % 75,000  75,000 
May 2031 Senior Unsecured Notes 3.00  % 90,000  90,000 
August 2031 Senior Unsecured Notes 4.08  % 50,000  50,000 
November 2031 Senior Unsecured Notes 2.81  % 175,000  175,000 
August 2032 Senior Unsecured Notes 3.09  % 100,000  100,000 
November 2032 Senior Unsecured Notes 5.06  % 200,000  200,000 
May 2033 Senior Unsecured Notes 3.10  % 55,000  55,000 
November 2033 Senior Unsecured Notes 2.96  % 125,000  125,000 
2036 Senior Unsecured Notes 3.06  % 75,000  75,000 
Fixed rate mortgages payable 3.63  % 229,785  299,570 
Total principal 3,856,785  3,560,570 
Unamortized debt issuance costs and debt premium, net
 (9,809) (9,391)
Total debt $ 3,846,976  $ 3,551,179 
(1)Represents the effective interest rate as of September 30, 2023. Effective interest rate incorporates the stated rate plus the impact of interest rate cash flow hedges and discount and premium amortization, if applicable. $25.0 million of Tranche B, $100.0 million of Tranche C, and $5.0 million of Tranche E are subject to variable interest rates, which is reflected in the effective interest rate. For the revolving line of credit, the effective interest rate excludes fees for unused borrowings.
On January 3, 2023, the Company's operating partnership, as borrower, certain of its subsidiaries, as subsidiary guarantors, and the Company entered into a third amended and restated credit agreement with a syndicated group of lenders which expanded the total borrowing capacity of its credit facility by $405.0 million to $1.955 billion with an expansion feature to expand the total borrowing capacity to $2.5 billion. The maturity date of the revolving line of credit (the "Revolver") is now January 2027, while the total borrowing capacity of the Revolver was increased to $950.0 million from $650.0 million. In connection with the credit facility recast, the $125.0 million tranche A term loan facility (the "Term Loan A") due January 2023 was eliminated by the Company, tranche B term loan facility (the "Term Loan B") increased from $250.0 million to $275.0 million, tranche C term loan facility (the "Term Loan C") increased from $225.0 million to $325.0 million, tranche D term loan facility (the "Term Loan D") increased from $175.0 million to $275.0 million, tranche E term loan facility (the "Term Loan E") increased from $125.0 million to $130.0 million, and the Company eliminated the $175.0 million term loan facility due in June 2023. In connection with the credit facility recast, effective January 3, 2023, all of our LIBOR-based interest rate swaps were converted into SOFR-based interest rate swaps.
As of September 30, 2023, the Company had outstanding letters of credit totaling $6.4 million and would have had the capacity to borrow remaining Revolver commitments of $131.6 million while remaining in compliance with the credit facility's financial covenants. At September 30, 2023, the Company was in compliance with all such covenants.
2028 Senior Unsecured Notes
On April 27, 2023, the operating partnership, as issuer, and the Company entered into a Note Purchase Agreement (the "April 2023 Note Purchase Agreement") which provides for the private placement of $120.0 million of 5.61% senior unsecured notes due July 5, 2028 (the "2028 Notes") to certain institutional investors. The 2028 Notes have an effective interest rate of 5.75% after taking into account the effect of interest rate swaps. On April 27, 2023, the operating partnership issued the 2028 Notes.
October 2026, October 2028, October 2030 And October 2033 Senior Unsecured Notes
As discussed in Note 13, on October 5, 2023, the Company’s operating partnership issued $65.0 million of 6.46% senior unsecured notes due October 5, 2026 (the "October 2026 Notes"), $100.0 million of 6.55% senior unsecured notes due October 5, 2028 (the "October 2028 Notes"), $35.0 million of 6.66% senior unsecured notes due October 5, 2030 (the "October 2030 Notes") and $50.0 million of 6.73% senior unsecured notes due October 5, 2033 (the "October 2033 Notes") in a private placement to certain institutional investors.

Future Debt Obligations
Based on existing debt agreements in effect as of September 30, 2023, 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 2023 $ 7,028  $ (778) $ 6,250 
2024 296,964  (2,906) 294,058 
2025 327,185  (1,854) 325,331 
2026 312,322  (1,544) 310,778 
2027 1,029,369  (1,040) 1,028,329 
2028 285,624  (829) 284,795 
Thereafter 1,598,293  (858) 1,597,435 
$ 3,856,785  $ (9,809) $ 3,846,976