| Schedule of Debt |
he debt of the Operating Partnership consisted of the following (in thousands):
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As of |
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As of |
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September 30, 2013 |
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December 31, 2012 |
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Stated Interest Rate(s) |
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Maturity Date |
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Principal |
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Premium
(Discount)
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Principal |
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Premium
(Discount)
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Senior, unsecured notes: |
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Senior notes |
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6.15 |
% |
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November 2015 |
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$ |
250,000 |
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$ |
(238 |
) |
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$ |
250,000 |
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$ |
(317 |
) |
Senior notes |
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6.125 |
% |
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June 2020 |
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300,000 |
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(1,515 |
) |
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300,000 |
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(1,650 |
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Mortgages payable: |
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Atlantic City (1)
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5.14%-7.65% |
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November 2021- December 2026 |
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49,148 |
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4,189 |
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52,212 |
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4,495 |
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Deer Park (2)
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LIBOR + 1.50% |
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August 2018 |
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150,000 |
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(1,583 |
) |
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— |
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— |
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Hershey (1)
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5.17%-8.00% |
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August 2015 |
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30,139 |
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1,141 |
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30,631 |
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1,581 |
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Ocean City (1)
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5.24 |
% |
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January 2016 |
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18,283 |
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216 |
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18,540 |
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285 |
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Note payable (1)
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1.50 |
% |
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June 2016 |
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10,000 |
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(435 |
) |
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10,000 |
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(546 |
) |
Unsecured term loan (3)
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LIBOR + 1.60% |
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February 2019 |
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250,000 |
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— |
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250,000 |
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— |
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Unsecured term note |
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LIBOR + 1.30% |
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August 2017 |
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7,500 |
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— |
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— |
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— |
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Unsecured lines of credit (4)
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LIBOR + 1.10% |
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November 2015 |
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259,000 |
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— |
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178,306 |
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— |
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$ |
1,324,070 |
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$ |
1,775 |
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$ |
1,089,689 |
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$ |
3,848 |
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(1) |
The effective interest rates assigned during the purchase price allocation to these assumed mortgages and note payable during acquisitions in 2011 were as follows: Atlantic City 5.05%, Ocean City 4.68%, Hershey 3.40% and note payable 3.15%.
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(2) |
On August 30, 2013, as part of the acquisition of a controlling interest in Deer Park, we assumed an interest-only mortgage loan that has a 5 year term and carries an interest rate of LIBOR + 1.50%. In October 2013, we entered into interest rate swap agreements that fix the base LIBOR rate at an average of 1.30%, creating a contractual interest rate of 2.80%.
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(3) |
This unsecured term loan is pre-payable without penalty beginning in February of 2015. |
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(4) |
At September 30, 2013, we had the option to extend the lines for one additional year to November 10, 2016. These lines required a facility fee payment of 0.175% annually based on the total amount of the commitment. The credit spread and facility fee can vary depending on our investment grade rating. In October 2013, we amended the lines of credit which extended the maturity to October 2017 with the ability to extend for one additional year, reduced the interest rate spread over LIBOR to 1.00% and reduced the facility fee to 0.15%. Loan origination costs associated with the amendments totaled approximately $1.5 million.
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The unsecured lines of credit and senior unsecured notes include covenants that require the maintenance of certain ratios, including debt service coverage and leverage, and limit the payment of dividends such that dividends and distributions will not exceed funds from operations, as defined in the agreements, for the prior fiscal year on an annual basis or 95% of funds from operations on a cumulative basis. As of September 30, 2013 we were in compliance with all of our debt covenants.
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| Schedule of Maturities of Long-term Debt |
Maturities of the existing long-term debt as of September 30, 2013 are as follows (in thousands):
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Calendar Year |
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Amount |
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2013 |
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$ |
871 |
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2014 |
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3,603 |
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2015 |
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541,344 |
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2016 |
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30,283 |
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2017 |
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10,508 |
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Thereafter |
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737,461 |
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Subtotal |
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1,324,070 |
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Net premiums |
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1,775 |
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Total |
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$ |
1,325,845 |
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