Debt

6 Months Ended

Jun. 30, 2020

Note 7. Debt

As of June 30, 2020, the Company had $50.0 million of senior unsecured notes that mature in September 2022, $100.0 million of senior unsecured notes that mature in July 2024, $50.0 million of senior unsecured notes that mature in July 2026,$50.0 million of senior unsecured notes that mature in October 2027, $100.0 million of senior unsecured notes that mature in December 2029 (collectively, the “Senior Unsecured Notes”), and a credit facility (the “Facility”), which consists of a $250.0 million unsecured revolving credit facility that matures in October 2022, and a $100.0 million term loan that matures in January 2022. As of both June 30, 2020 and December 31, 2019, there were no borrowings outstanding on the revolving credit facility and $100.0 million of borrowings outstanding on the term loan. As of June 30, 2020, the Company had one interest rate cap to hedge the variable cash flows associated with its $100.0 million term loan. As of December 31, 2019, the Company had two interest rate caps to hedge the variable cash flows associated with its existing $100.0 million variable-rate term loan. See “Note 9 - Derivative Financial Instruments” for more information regarding the Company’s interest rate caps.

The aggregate amount of the Facility may be increased to a total of up to $600.0 million, subject to the approval of the administrative agent and the identification of lenders willing to make available additional amounts. Outstanding borrowings under the Facility are limited to the lesser of (i) the sum of the $100.0 million term loan and the $250.0 million revolving credit facility, or (ii) 60.0% of the value of the unencumbered properties. Interest on the Facility, including the term loan, 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 Facility plus 1.25%. The applicable LIBOR margin will range from 1.05% to 1.50% (1.05% as of June 30, 2020) for the revolving credit facility and 1.20% to 1.70% (1.20% as of June 30, 2020) for the $100.0 million term loan that matures in January 2022, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value. The Facility requires quarterly payments of an annual facility fee in an amount ranging from 0.15% to 0.30%, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value.

The Facility and the Senior Unsecured Notes are guaranteed by the Company and by substantially all of the current and to-be-formed subsidiaries of the Company that own an unencumbered property. The Facility and the Senior Unsecured Notes are unsecured by the Company’s properties or by interests in the subsidiaries that hold such properties. The Facility and the Senior Unsecured Notes include a series of financial and other covenants with which the Company must comply. The Company was in compliance with the covenants under the Facility and the Senior Unsecured Notes as of June 30, 2020 and December 31, 2019.

As of June 30, 2020, the Company had one mortgage loan payable, net of deferred financing costs, totaling approximately $11.5 million, which bore interest at a weighted average fixed annual rate of 5.5%. The mortgage loan payable is collateralized by one property, is non-recourse and requires monthly interest and principal payments until it matures in April 2021. As of December 31, 2019, the Company had two mortgage loans payable, net of deferred financing costs, totaling approximately $44.3 million, which bore interest at a weighted average fixed annual interest rate of 4.1%. As of June 30, 2020 and December 31, 2019, the total gross book value of the properties securing the debt was approximately $33.9 million and $114.9 million, respectively.

The scheduled principal payments of the Company’s debt as of June 30, 2020 were as follows (dollars in thousands):


	Credit Facility		Term Loan			Senior Unsecured Notes			Mortgage Loan Payable			Total Debt
2020 (6 months)	$	—	$	—		$	—		$	231		$	231
2021	—		—			—			11,271			11,271
2022	—		100,000			50,000			—			150,000
2023	—		—			—			—			—
2024	—		—			100,000			—			100,000
Thereafter	—		—			200,000			—			200,000
Total debt	—		100,000			350,000			11,502			461,502
Deferred financing costs, net	—		(313)			(2,131)			(14)			(2,458)
Total debt, net	$	—	$	99,687		$	347,869		$	11,488		$	459,044
Weighted average interest rate	n/a		1.7		%	3.8		%	5.5		%	3.4		%