Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

7. Debt

Long-term debt consists of the following.

(in thousands)	June 30, 2022		December 31, 2021
Fixed rate mortgage notes payable due 2023 through 2047; weighted average interest rate of 4.14% as of both June 30, 2022 and December 31, 2021	$	2,153,956	$	2,164,115
Variable rate mortgage notes payable due 2023 through 2030; weighted average interest rate of 4.04% and 2.44% as of June 30, 2022 and December 31, 2021, respectively	1,467,840		1,476,943
Convertible notes payable due October 2026; interest rate of 2.00% as of both June 30, 2022 and December 31, 2021	230,000		230,000
Other notes payable due 2022, interest rate of 2.10% as of June 30, 2022	9,605		—
Deferred financing costs, net	(27,241)		(29,846)
Total long-term debt	3,834,160		3,841,212
Current portion	268,341		63,125
Total long-term debt, less current portion	$	3,565,819	$	3,778,087

As of June 30, 2022, 93.8%, or $3.6 billion, of the Company's total debt obligations represented non-recourse property-level mortgage financings.

As of June 30, 2022, $72.6 million of letters of credit and no cash borrowings were outstanding under the Company's $80.0 million secured credit facility. The Company also had a separate secured letter of credit facility providing up to $15.0 million of letters of credit as of June 30, 2022 under which $13.9 million had been issued as of that date.

Financial Covenants

Certain of the Company's debt documents contain restrictions and financial covenants, such as those requiring the Company to maintain prescribed minimum liquidity, net worth, and stockholders' equity levels and debt service ratios, and requiring the Company not to exceed prescribed leverage ratios, in each case on a consolidated, portfolio-wide, multi-community, single-community, and/or entity basis. In addition, the Company's debt documents generally contain non-financial covenants, such as those requiring the Company to comply with Medicare or Medicaid provider requirements and maintain insurance coverage.

The Company's failure to comply with applicable covenants could constitute an event of default under the applicable debt documents. Many of the Company's debt documents contain cross-default provisions so that a default under one of these instruments could cause a default under other debt and lease documents (including documents with other lenders and lessors). Furthermore, the Company's debt is secured by its communities and, in certain cases, a guaranty by the Company and/or one or more of its subsidiaries.

As of June 30, 2022, the Company is in compliance with the financial covenants of its debt agreements.