| DEBT FINANCING |
DEBT FINANCING
The Company's outstanding debt as of March 31, 2016 and December 31, 2015 is summarized as follows (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
March 31, |
|
December 31, |
|
Rate (1)
|
|
2016 |
|
2015 |
Credit Facility: |
|
|
|
|
|
Revolving line of credit |
2.04% |
|
$ |
259,475 |
|
|
$ |
187,975 |
|
Term loan |
2.74% |
|
200,000 |
|
|
200,000 |
|
Fixed rate mortgages payable |
3.97% |
|
172,201 |
|
|
176,911 |
|
Total principal |
|
|
631,676 |
|
|
564,886 |
|
Unamortized debt issuance costs and debt premium, net |
|
|
2,636 |
|
|
2,909 |
|
Total debt |
|
|
$ |
634,312 |
|
|
$ |
567,795 |
|
|
|
(1) |
Represents the effective interest rate as of March 31, 2016. 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.
|
Credit Facility
On August 13, 2015, the Company entered into an amendment with a syndicated group of lenders consisting of 11 financial institutions to increase the total borrowing capacity under its unsecured credit facility (the "credit facility"), which was originally entered into on April 1, 2014, by $125.0 million for a total credit facility of $550.0 million. The Company has an additional expansion option under the credit facility, which if exercised, would provide for a total borrowing capacity of $700.0 million. The credit facility consists of two components:
|
|
• |
A senior revolving credit facility (the "revolving line of credit"), which provides for a total borrowing commitment up to $350.0 million, whereby the Company may borrow, repay and re-borrow amounts under the revolving line of credit. The borrowing commitment is subject to a borrowing base calculation, which only includes self storage properties with an occupancy rate of at least 75% on a combined basis. As of March 31, 2016, the Company had the capacity to borrow $90.5 million, subject to the borrowing base calculation. The Company is required to pay a fee which ranges from 0.20% to 0.25% of unused borrowings under the revolving line of credit. As of March 31, 2016, the pricing grid under the revolving line of credit provides for an interest rate equal to one-month London Interbank Offered Rate ("LIBOR") plus 1.60%. The revolving line of credit matures in March 2017 and the Company may elect an extension of the maturity date until March 2018 by paying an extension fee equal to 0.20% of the total borrowing commitment at the time of the extension.
|
|
|
• |
A $200.0 million senior term loan (the "term loan") which provides that amounts borrowed may be repaid at any time but not re-borrowed. As of March 31, 2016, the pricing grid under the term loan provides for an interest rate equal to one-month LIBOR plus 1.50%. No principal payments are required under the term loan until the maturity date in March 2018.
|
The terms of the credit facility limit the Company's ability to make distributions, incur additional debt, and acquire or sell significant assets. The credit facility requires compliance with certain financial and non-financial covenants, including a maximum total leverage ratio, a minimum fixed charge coverage ratio, and minimum net worth, which were not impacted by the increase amendment discussed above. At March 31, 2016, the Company was in compliance with all such covenants.
As discussed further in Note 12, on May 6, 2016, the Company amended and restated its credit facility with a syndicated group of lenders. The amendment increased the credit facility's total borrowing capacity, extended the maturity dates, and reallocated borrowings among the term loan tranches and a revolving line of credit.
Fixed Rate Mortgages Payable
Fixed rate mortgages have scheduled maturities at various dates through November 2024, and have effective interest rates that range from 2.43% to 5.00%. Principal and interest are generally payable monthly or in monthly interest-only payments with balloon payments due at maturity.
Future Debt Obligations
Based on existing debt agreements in effect as of March 31, 2016, the scheduled principal and maturity payments for outstanding borrowings under the Company's credit facility and fixed rate mortgages are presented in the table below (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ending December 31, |
|
Scheduled Principal and Maturity Payments |
|
Premium Amortization and Unamortized Debt Issuance Costs |
|
Total |
Remainder of 2016 |
|
$ |
9,420 |
|
|
$ |
645 |
|
|
$ |
10,065 |
|
2017 |
|
275,629 |
|
|
322 |
|
|
275,951 |
|
2018 |
|
209,191 |
|
|
621 |
|
|
209,812 |
|
2019 |
|
3,468 |
|
|
713 |
|
|
4,181 |
|
2020 |
|
37,635 |
|
|
360 |
|
|
37,995 |
|
2021 |
|
5,798 |
|
|
2 |
|
|
5,800 |
|
After 2022 |
|
90,535 |
|
|
(27 |
) |
|
90,508 |
|
|
|
$ |
631,676 |
|
|
$ |
2,636 |
|
|
$ |
634,312 |
|
|