Debt (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of Debt

The Company's debt consisted of the following as of March 31, 2020 and December 31, 2019 (dollars in thousands):

			Balance Outstanding as of
	Interest Rate	Maturity Date	March 31, 2020			December 31, 2019
Revolving credit facilities
Senior unsecured credit facility	Floating (1)	January 2022	$	643,168		$	165,000
PHL unsecured credit facility	Floating (2)	January 2022	—			—
Total revolving credit facilities			$	643,168		$	165,000
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
Fourth Term Loan	Floating (3)	October 2024	110,000			110,000
Sixth Term Loan
Tranche 2021	Floating (3)	November 2021	300,000			300,000
Tranche 2022	Floating (3)	November 2022	400,000			400,000
Tranche 2023	Floating (3)	November 2023	400,000			400,000
Tranche 2024	Floating (3)	January 2024	400,000			400,000
Total Sixth Term Loan			1,500,000			1,500,000
Total term loans at stated value			1,975,000			1,975,000
Deferred financing costs, net			(9,497		)	(10,343		)
Total term loans			$	1,965,503		$	1,964,657
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			(413		)	(437		)
Total senior unsecured notes			$	99,587		$	99,563
Total debt			$	2,708,258		$	2,229,220

 

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⁽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. As of March 31, 2020, $1.6 billion of the borrowings under the term loan facilities bore an effective weighted-average fixed interest rate of 3.56%, after taking into account interest rate swap agreements, and $345.0 million bore a weighted-average floating interest rate of 2.55%. As of December 31, 2019, $1.6 billion of the borrowings under the term loan facilities bore a weighted-average fixed interest rate of 3.43%, after taking into account interest rate swap agreements, and $345.0 million bore a weighted-average floating interest rate of 3.32%.

Schedule of Components of Interest Expense

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

	For the three months ended March 31,
	2020		2019
Unsecured revolving credit facilities	$	2,305	$	1,400
Unsecured term loan facilities	17,152		21,865
Senior unsecured notes	1,198		1,198
Mortgage debt	—		626
Amortization of deferred financing fees	1,190		1,488
Other	1,746		2,751
Total interest expense	$	23,591	$	29,328

Schedule of Interest Rate Swaps

The Company's interest rate swaps at March 31, 2020 and December 31, 2019 consisted of the following (dollars in thousands):

				Notional Value as of
Hedge Type	Interest Rate		Maturity	March 31, 2020		December 31, 2019
Swap - cash flow	1.63%		January 2020	$	—	$	50,000
Swap - cash flow	1.63%		January 2020	—		50,000
Swap - cash flow	2.46%		January 2020	—		50,000
Swap - cash flow	2.46%		January 2020	—		50,000
Swap - cash flow	1.66%		January 2020	—		50,000
Swap - cash flow	1.66%		January 2020	—		50,000
Swap - cash flow	2.12%		December 2020	100,000		100,000
Swap - cash flow	2.12%		December 2020	100,000		100,000
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		100,000
Swap - cash flow	1.47%	(1)	January 2021	47,500		47,500
Swap - cash flow	1.47%	(1)	January 2021	47,500		47,500
Swap - cash flow	1.47%	(1)	January 2021	47,500		47,500
Swap - cash flow	1.47%	(1)	January 2021	47,500		47,500
Swap - cash flow	2.60%		October 2021	55,000		55,000
Swap - cash flow	2.60%		October 2021	55,000		55,000
Swap - cash flow	1.78%	(1)	January 2022	100,000		100,000
Swap - cash flow	1.78%	(1)	January 2022	50,000		50,000
Swap - cash flow	1.79%	(1)	January 2022	30,000		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	1.99%		November 2023	85,000		85,000
Swap - cash flow	1.99%		November 2023	85,000		85,000
Swap - cash flow	1.99%		November 2023	50,000		50,000
Swap - cash flow	1.99%		November 2023	30,000		30,000
Swap - cash flow	2.60%		January 2024	75,000		—
Swap - cash flow	2.60%		January 2024	50,000		—
Swap - cash flow	2.60%		January 2024	25,000		—
Swap - cash flow	2.60%		January 2024	75,000		—
Swap - cash flow	2.60%		January 2024	75,000		—
Total				$	1,630,000	$	1,630,000

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⁽¹⁾ Swaps assumed in connection with the merger with LaSalle Hotel Properties on November 30, 2018.