Debt (Tables)

12 Months Ended

Dec. 31, 2018

The Company's debt consisted of the following as of December 31, 2018 and 2017 (dollars in thousands):



			Balance Outstanding as of
	Interest Rate	Maturity Date	December 31, 2018			December 31, 2017
Revolving credit facilities
Senior unsecured credit facility	Floating ⁽¹⁾	January 2022	$	170,000		$	45,000
PHL unsecured credit facility	Floating ⁽²⁾	January 2022	—			—
Total revolving credit facilities			$	170,000		$	45,000

Unsecured term loans
First Term Loan	Floating ⁽³⁾	January 2023	300,000			300,000
Second Term Loan	Floating ⁽³⁾	April 2022	65,000			65,000
Third Term Loan	Floating ⁽³⁾	January 2021	200,000			200,000
Fourth Term Loan	Floating ⁽³⁾	October 2024	110,000			110,000
Fifth Term Loan	Floating ⁽³⁾	March 2019	—			—
Sixth Term Loan
Tranche 2020	Floating ⁽³⁾	December 2020	250,000			—
Tranche 2021	Floating ⁽³⁾	November 2021	300,000			—
Tranche 2022	Floating ⁽³⁾	November 2022	400,000			—
Tranche 2023	Floating ⁽³⁾	November 2023	400,000			—
Tranche 2024	Floating ⁽³⁾	January 2024	400,000			—
Total Sixth Term Loan			1,750,000			—
Total term loans at stated value			2,425,000			675,000
Deferred financing costs, net			(15,716		)	(4,594		)
Total term loans			$	2,409,284		$	670,406

Senior unsecured notes
Series A Notes	4.70%	December 2023	60,000			60,000
Series B Notes	4.93%	December 2025	40,000			40,000
Total senior unsecured notes at stated value			100,000			100,000
Deferred financing costs, net			(531		)	(626		)
Total senior unsecured notes			$	99,469		$	99,374

Mortgage loans
The Westin San Diego Gaslamp Quarter	3.69%	January 2020	68,207			70,573
Deferred financing costs, net			(62		)	(116		)
Total mortgage loans			$	68,145		$	70,457
Total debt			$	2,746,898		$	885,237

^{________________________}

⁽¹⁾Borrowings bear interest at floating rates equal to, at the Company's option, either (i) LIBOR plus an applicable margin or (ii) an Adjusted Base Rate (as defined in the applicable credit agreement) plus an applicable margin.

⁽²⁾Borrowings bear interest at floating rates equal to, at the Company's option, either (i) LIBOR plus an applicable margin or (ii) an Eurocurrency Rate (as defined in the applicable credit agreement) plus an applicable margin.

⁽³⁾Borrowings under the term loan facilities bear interest at floating rates equal to, at the Company's option, either (i) LIBOR plus an applicable margin or (ii) a Base Rate plus an applicable margin.

Schedule of Components of Interest Expense

The components of the Company's interest expense consisted of the following (in thousands):



	For the year ended December 31,
	2018		2017		2016
Unsecured revolving credit facilities	$	11,274	$	3,914	$	3,694
Unsecured term loan facilities	30,479		21,396		21,208
Senior unsecured notes	4,686		4,805		4,872
Mortgage debt	2,592		3,600		11,377
Amortization of deferred financing fees	2,565		2,397		2,737
Other	2,327		1,187		(273		)
Total interest expense	$	53,923	$	37,299	$	43,615

Schedule of Future Minimum Principal Payments for Debt

As of December 31, 2018, the future minimum principal payments for the Company's debt are as follows (in thousands):



2019	$	2,455
2020	315,752
2021	500,000
2022	635,000
2023	760,000
Thereafter	550,000
Total debt principal payments	2,763,207
Mortgage loan premiums and deferred financing costs	(16,309		)
Total debt	$	2,746,898

Schedule of Interest Rate Swaps

The Company's interest rate swaps consisted of the following (in thousands):



				Notional Value as of
Hedge Type	Interest Rate		Maturity	December 31, 2018		December 31, 2017
Swap - cash flow	1.57%	⁽¹⁾	May 2019	$	100,000	$	—
Swap - cash flow	1.57%	⁽¹⁾	May 2019	62,500		—
Swap - cash flow	1.57%	⁽¹⁾	May 2019	15,000		—
Swap - cash flow	1.63%		January 2020	50,000		50,000
Swap - cash flow	1.63%		January 2020	50,000		50,000
Swap - cash flow	2.46%		January 2020	50,000		50,000
Swap - cash flow	2.46%		January 2020	50,000		50,000
Swap - cash flow	1.66%		January 2020	50,000		50,000
Swap - cash flow	1.66%		January 2020	50,000		50,000
Swap - cash flow	1.74%		January 2021	75,000		75,000
Swap - cash flow	1.75%		January 2021	50,000		50,000
Swap - cash flow	1.53%		January 2021	37,500		37,500
Swap - cash flow	1.53%		January 2021	37,500		37,500
Swap - cash flow	1.46%	⁽¹⁾	January 2021	100,000		—
Swap - cash flow	1.47%	⁽¹⁾	January 2021	47,500		—
Swap - cash flow	1.47%	⁽¹⁾	January 2021	47,500		—
Swap - cash flow	1.47%	⁽¹⁾	January 2021	47,500		—
Swap - cash flow	1.47%	⁽¹⁾	January 2021	47,500		—
Swap - cash flow	2.60%	⁽²⁾	October 2021	55,000		—
Swap - cash flow	2.60%	⁽²⁾	October 2021	55,000		—
Swap - cash flow	1.78%	⁽¹⁾	January 2022	100,000		—
Swap - cash flow	1.78%	⁽¹⁾	January 2022	50,000		—
Swap - cash flow	1.79%	⁽¹⁾	January 2022	30,000		—
Swap - cash flow	1.68%		April 2022	25,000		25,000
Swap - cash flow	1.68%		April 2022	25,000		25,000
Swap - cash flow	1.64%		April 2022	25,000		25,000
Swap - cash flow	1.64%		April 2022	25,000		25,000
Swap - cash flow	2.60%	⁽³⁾	January 2024	75,000		—
Swap - cash flow	2.60%	⁽³⁾	January 2024	50,000		—
Swap - cash flow	2.60%	⁽³⁾	January 2024	25,000		—
Swap - cash flow	2.60%	⁽³⁾	January 2024	75,000		—
Swap - cash flow	2.60%	⁽³⁾	January 2024	75,000		—

^{________________________}

⁽¹⁾ Swaps assumed from the LaSalle merger on November 30, 2018.

⁽²⁾ Swaps will be effective January 2019.

⁽³⁾ Swaps will be effective January 2020.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details