Note 7. Debt

On May 8, 2014, the Company entered into a Third Amended and Restated Senior Credit Agreement (the “Facility”) with KeyBank National Association, as administrative agent and as a lender, KeyBanc Capital Markets, as a lead arranger and PNC Bank, National Association, Union Bank, N.A. and Regions Bank as lenders (collectively the “Lenders”) to, among other matters, add a seven-year $50.0 million term loan to the existing $150.0 million facility, which included a $100.0 million revolving credit facility and a five-year $50.0 million term loan. The seven-year $50.0 million term loan maturity date under the Facility is May 2021. The five-year $50.0 million term loan maturity date under the Facility was extended to May 2019 (previously January 2018) and the maturity date of the revolving credit facility was extended to May 2018 (previously January 2016) with one 12-month extension option exercisable by the Company, subject, among other things, to there being an absence of an event of default under the Facility and to the payment of an extension fee.

On December 8, 2014 the Company entered into a first amendment to the Facility (the “Amended Facility”) with KeyBank National Association, as administrative agent and as a lender, and PNC Bank, National Association, MUFG Union Bank, N.A., Regions Bank and Goldman Sachs Bank USA as lenders to add a five-year $100.0 million term loan to the Company’s existing $200.0 million credit facility. The five-year $100.0 million term loan matures in March 2020.

The aggregate amount of the Amended Facility may be increased to a total of up to $500.0 million, subject to the approval of the administrative agent and the identification of lenders willing to make available additional amounts. Outstanding borrowings under the Amended Facility are limited to the lesser of (i) the sum of the $100.0 million revolving credit facility, the $50.0 million five-year term loan, the $50.0 million seven-year term loan and the $100.0 million five-year term loan or (ii) 60.0% of the value of the unencumbered properties. Interest on the Amended Facility, including the five-year and seven-year term loans, is generally to be paid based upon, at the Company’s option, either (i) LIBOR plus the applicable LIBOR margin or (ii) the applicable base rate which is the greatest of the administrative agent’s prime rate, 0.50% above the federal funds effective rate, or thirty-day LIBOR plus the applicable LIBOR margin for LIBOR rate loans under the Amended Facility plus 1.25%. The applicable LIBOR margin will range from 1.50% to 2.05% (1.50% at December 31, 2014) for the revolving credit facility and each of the five-year term loans and 1.75% to 2.30% (1.75% at December 31, 2014) for the seven-year term loan, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value.

The Amended Facility requires quarterly payments of an annual unused facility fee in an amount equal to 0.20% or 0.25% depending on the unused portion of the Amended Facility. The Amended Facility is guaranteed by us and by substantially all of the current and to-be-formed subsidiaries of the borrower that own an unencumbered property. The Amended Facility has been modified to be unsecured by the Company’s properties or by interests in the subsidiaries that hold such properties. The Amended Facility includes a series of financial and other covenants that the Company must comply with in order to borrow under the Amended Facility. As of December 31, 2014, there no borrowings outstanding on the revolving credit facility and $200.0 million of borrowings outstanding on the term loans. As of December 31, 2013, there were $31.0 million of borrowings outstanding on the revolving credit facility and $50.0 million of borrowings outstanding on a five-year term loan. The Company was in compliance with the covenants under the Amended Facility at December 31, 2014 and 2013.

The Company has mortgage loans payable which are collateralized by certain of the properties and require monthly interest and principal payments until maturity and are generally non-recourse. The mortgage loans mature between 2015 and 2021. As of December 31, 2014, the Company had nine mortgage loans payable totaling approximately $104.5 million, which bear interest at a weighted average fixed annual rate of 4.5%. As of December 31, 2013, the Company had nine mortgage loans payable totaling approximately $108.3 million, which bore interest at a weighted average fixed annual interest rate of 4.5%. As of December 31, 2014 and 2013, the total net book value of the properties securing the debt was approximately $213.4 million and $218.0 million, respectively.

During the years ended December 31, 2014, 2013 and 2012, the Company capitalized approximately $0.3 million, $0.2 million and $0, respectively, of interest associated with redevelopment and expansion activities.

The scheduled principal payments of the Company’s debt as of December 31, 2014 were as follows (dollars in thousands):



		Credit Facility		Term Loans		Mortgage Loans Payable		Total Debt
2015	$	-	$	-	$	24,788	$	24,788
2016		-		-		12,130		12,130
2017		-		-		1,916		1,916
2018		-		-		1,910		1,910
2019		-		50,000		18,806		68,806
Thereafter		-		150,000		44,348		194,348
Subtotal		-		200,000		103,898		303,898
Unamortized net premiums		-		-		603		603
Total Debt	$	-	$	200,000	$	104,501	$	304,501

Weighted Average Interest Rate		n/a		1.7%		4.5%		2.7%