Debt (Tables)

3 Months Ended

Mar. 31, 2015

Debt

Summary of the mortgage notes payable, unsecured term loans and credit facility

The following table sets forth a summary of the Company’s outstanding indebtedness, including borrowings under the Company’s unsecured credit facility, unsecured term loans, unsecured notes and mortgage notes payable as of March 31, 2015 and December 31, 2014 (dollars in thousands):

			Principal			Principal
			outstanding as			outstanding as
			of			of				Pre-
	Interest		March 31,			December 31,			Current	payment
Loan	Rate (1)		2015			2014			Maturity	Terms (2)
Unsecured credit facility:
$300 Million Wells Fargo Unsecured Credit Facility	L + 1.15	%		73,000			131,000		Dec-18-2019	i
Total unsecured credit facility			$	73,000		$	131,000
Unsecured term loans:
$150 Million Wells Fargo Unsecured Term Loan A	L + 1.65	%		150,000			150,000		Mar-31-2022	ii
$150 Million Wells Fargo Unsecured Term Loan B	L + 1.70	%		—			—		Mar-21-2021	ii
Total unsecured term loans			$	150,000		$	150,000
Unsecured notes:
$50 Million Series A Unsecured Notes	4.98	%		50,000			50,000		Oct-1-2024	ii
$50 Million Series B Unsecured Notes	4.98	%		50,000			50,000		Jul-1-2026	ii
$80 Million Series C Unsecured Notes	4.42	%		80,000			80,000		Dec-30-2026	ii
$100 Million Series D Unsecured Notes	4.32	%		100,000			—		Feb-20-2025	ii
$20 Million Series E Unsecured Notes	4.42	%		20,000			—		Feb-20-2027	ii
Total unsecured notes			$	300,000		$	180,000
Mortgage notes payable (secured debt):
Sun Life Assurance Company of Canada (U.S.)	6.05	%	$	3,393	(3)	$	3,445	(3)	Jun-1-2016	ii
Webster Bank, National Association	4.22	%		5,636			5,677		Aug-4-2016	ii
Union Fidelity Life Insurance Co.	5.81	%		6,017	(3)		6,103	(3)	Apr-30-2017	ii
Webster Bank, National Association	3.66	%		3,013			3,035		May-29-2017	ii
Webster Bank, National Association	3.64	%		3,244			3,268		May-31-2017	ii
Wells Fargo, National Association	5.90	%		4,165	(3)		4,182	(3)	Aug-1-2017	iii
Connecticut General Life Insurance Company -1 Facility	6.50	%		57,835			58,050		Feb-1-2018	iv
Connecticut General Life Insurance Company -2 Facility	5.75	%		58,825			59,065		Feb-1-2018	iv
Connecticut General Life Insurance Company -3 Facility	5.88	%		16,587			16,647		Feb-1-2018	iv
Wells Fargo Bank, National Association CMBS Loan	4.31	%		65,146			65,567		Dec-1-2022	v
Total mortgage notes payable			$	223,861		$	225,039
Total unamortized fair market value premium				270			308
Total carrying value mortgage notes payable			$	224,131		$	225,347
Total / weighted average interest rate(4)	4.47	%	$	747,131		$	686,347

(1) Current interest rate as of March 31, 2015. At March 31, 2015 and December 31, 2014, the one-month LIBOR (“L”) was 0.17625% and 0.17125%, respectively.  The current interest rate presented in the table above are not adjusted to include the amortization of deferred financing fees incurred in obtaining debt or the unamortized fair market value premium.

(2) Prepayment terms consist of (i) pre-payable with no penalty; (ii) pre-payable with penalty; (iii) pre-payable with penalty beginning May 1, 2017, however can be defeased; (iv) pre-payable without penalty six months prior to the maturity date; and (v) not pre-payable, however can be defeased beginning January 1, 2016. 

(3) The principal outstanding does not include an unamortized fair market value premium.

(4) The weighted average interest rate was calculated using the current swapped notional amount of $300 million of debt, and excludes fair market value premiums.

Schedule of aggregate carrying value of the debt and the corresponding estimate of fair value

The following table presents the aggregate carrying value of the Company’s debt and the corresponding estimate of fair value as of March 31, 2015 and December 31, 2014 (in thousands):

	March 31, 2015				December 31, 2014
	Principal		Fair		Principal		Fair
	Outstanding		Value		Outstanding		Value
Unsecured credit facility	$	73,000	$	73,000	$	131,000	$	131,000
Unsecured term loans		150,000		150,493		150,000		150,000
Unsecured notes		300,000		318,941		180,000		187,587
Mortgage notes payable		223,861		239,366		225,039		237,602
Total principal amount		746,861	$	781,800		686,039	$	706,189
Total unamortized fair market value premium		270				308
Total carrying value	$	747,131			$	686,347