Debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Debt

6. Debt

Long-term debt consists of the following.

(in thousands)	March 31, 2024		December 31, 2023
Fixed rate mortgage notes payable due 2025 through 2047; weighted average interest rate of 4.26% as of both March 31, 2024 and December 31, 2023	$	1,947,548	$	1,953,414
Variable rate mortgage notes payable due 2025 through 2030; weighted average interest rate of 7.75% and 7.74% as of March 31, 2024 and December 31, 2023, respectively	1,570,918		1,524,907
Convertible notes payable due October 2026; interest rate of 2.00% as of both March 31, 2024 and December 31, 2023	230,000		230,000
Tangible equity units senior amortizing notes due November 2025; interest rate of 10.25% as of both March 31, 2024 and December 31, 2023	15,935		17,990
Notes payable for insurance premium financing due 2024; interest rate of 7.40% as of March 31, 2024	22,592		—
Deferred financing costs, net	(29,180)		(28,998)
Total long-term debt	3,757,813		3,697,313
Current portion	65,681		41,463
Total long-term debt, less current portion	$	3,692,132	$	3,655,850

As of March 31, 2024, the long-term debt, less current portion within the Company's condensed consolidated balance sheet includes $100.0 million of mortgage notes payable scheduled to mature in January 2025 with two one-year extension options, exercisable by the Company subject to the satisfaction of certain conditions.

As of March 31, 2024, 91.1%, or $3.4 billion, of the Company's total debt obligations represented non-recourse property-level mortgage financings.

As of March 31, 2024, $63.5 million of letters of credit and no cash borrowings were outstanding under the Company's $100.0 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 March 31, 2024 under which $14.5 million had been issued as of that date.

2024 Mortgage Financing

In February 2024, the Company obtained $50.0 million of debt secured by first priority mortgages on 11 communities. The loan bears interest at a variable rate equal to SOFR plus a margin of 350 basis points. The debt matures in February 2027 with two one-year extension options, exercisable subject to certain performance criteria.

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 mortgage 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 March 31, 2024, the Company is in compliance with the financial covenants of its debt agreements.