Debt

Debt consisted of the following as of June 30, 2017 and December 31, 2016 (amounts in thousands):



	Principal Balance						As of June 30, 2017
	June 30, 2017			December 31, 2016			Stated Rate		Effective Rate⁽¹⁾		Maturity Date⁽²⁾
Mortgage debt collateralized by:
Fixed rate mortgage debt
1333 Broadway	$	67,138		$	67,656		6.32	%	3.74	%	1/5/2018
1400 Broadway
(first lien mortgage loan)	67,181			67,714			6.12	%	3.37	%	2/5/2018
(second lien mortgage loan)	9,281			9,389			3.35	%	3.35	%	2/5/2018
111 West 33rd Street
(first lien mortgage loan)	74,662			75,261			6.01	%	3.31	%	4/5/2018
(second lien mortgage loan)	9,440			9,509			6.56	%	3.62	%	4/5/2018
1350 Broadway	37,458			37,764			5.87	%	3.71	%	4/5/2018
Metro Center	94,976			95,985			3.59	%	3.65	%	11/5/2024
10 Union Square	50,000			50,000			3.70	%	3.97	%	4/1/2026
1542 Third Avenue	30,000			17,795			4.29	%	4.68	%	5/1/2027
First Stamford Place⁽³⁾	180,000			235,067			4.28	%	4.81	%	7/1/2027
1010 Third Avenue and 77 West 55th Street	40,000			26,502			4.01	%	4.50	%	1/5/2028
10 Bank Street	35,000			31,544			4.23	%	4.50	%	6/1/2032
383 Main Avenue	30,000			28,654			4.44	%	4.88	%	6/30/2032
Total mortgage debt	725,136			752,840
Senior unsecured notes - exchangeable	250,000			250,000			2.63	%	3.93	%	8/15/2019
Senior unsecured notes:⁽⁶⁾
Series A	100,000			100,000			3.93	%	3.98	%	3/27/2025
Series B	125,000			125,000			4.09	%	4.14	%	3/27/2027
Series C	125,000			125,000			4.18	%	4.23	%	3/27/2030
Unsecured revolving credit facility⁽⁶⁾	—			—			⁽⁴⁾		⁽⁴⁾		1/23/2019
Unsecured term loan facility⁽⁶⁾	265,000			265,000			⁽⁵⁾		⁽⁵⁾		8/24/2022
Total principal	1,590,136			1,617,840
Unamortized premiums, net of unamortized discount	(1,232		)	905
Deferred financing costs, net	(9,405		)	(6,414		)
Total	$	1,579,499		$	1,612,331

______________


(1)	The effective rate is the yield as of June 30, 2017, including the effects of debt issuance costs and the amortization of the fair value of debt adjustment.


(2)	Pre-payment is generally allowed for each loan upon payment of a customary pre-payment penalty.


(3)	Represents a $164 million mortgage loan bearing interest of 4.09% and a $16 million loan bearing interest at 6.25%.


(4)	At June 30, 2017, the unsecured revolving credit facility bears a floating rate at 30 day LIBOR plus 1.15%. The rate at June 30, 2017 was 2.37%.


(5)	The unsecured term loan facility bears a floating rate at 30 day LIBOR plus 1.60%. The rate at June 30, 2017 was 2.82%. Pursuant to a forward interest rate swap agreement, the LIBOR rate is fixed at 2.1485% for the period beginning on August 31, 2017 through maturity.


(6)	At June 30, 2017, we were in compliance with all debt covenants.

Mortgage Debt

During April 2017, we refinanced a mortgage loan collateralized by 1542 Third Avenue. The new $30.0 million loan bears interest at a fixed rate of 4.29% and matures in May 2027.

During May 2017, we refinanced a mortgage loan collateralized by 10 Bank Street. The new $35.0 million loan bears interest at a fixed rate of 4.23% and matures in June 2032.

During June 2017, we refinanced a mortgage loan collateralized by First Stamford Place. The new $180.0 million loans bear a blended interest rate of 4.28% and mature in July 2027. One mortgage loan is for $164.0 million and bears an interest rate of 4.09%. The second loan is for $16.0 million and bears an interest rate of 6.25%.

During June 2017, we refinanced a mortgage loan collateralized by 1010 Third Avenue and 77 West 55th Street. The new $40.0 million loan bears interest at a fixed rate of 4.01% and matures in January 2028.

During June 2017, we refinanced a mortgage loan collateralized by 383 Main Avenue. The new $30.0 million loan bears interest at a fixed rate of 4.44% and matures in June 2032.

Principal Payments

Aggregate required principal payments at June 30, 2017 are as follows (amounts in thousands):



Year	Amortization		Maturities		Total
2017	$	3,898	$	—	$	3,898
2018	4,417		262,210		266,627
2019	3,790		250,000		253,790
2020	3,938		—		3,938
2021	4,090		—		4,090
Thereafter	43,310		1,014,483		1,057,793
Total	$	63,443	$	1,526,693	$	1,590,136

Deferred Financing Costs

Deferred financing costs, net, consisted of the following at June 30, 2017 and December 31, 2016 (amounts in thousands):



	June 30, 2017			December 31, 2016
Financing costs	$	17,803		$	23,145
Less: accumulated amortization	(4,986		)	(12,241		)
Total deferred financing costs, net	$	12,817		$	10,904

At June 30, 2017 and December 31, 2016, $3.4 million and $4.5 million, respectively, of net deferred financing costs associated with the unsecured revolving credit facility was included in deferred costs, net on the condensed consolidated balance sheet.

Amortization expense related to deferred financing costs was $1.3 million and $1.1 million for the three months ended June 30, 2017 and 2016, respectively, and $2.6 million and $2.4 million for the six months ended June 30, 2017 and 2016, respectively, and was included in interest expense.

Unsecured Revolving Credit Facility

Our unsecured revolving credit facility is comprised of a revolving credit facility in the maximum principal amount of $1.1 billion. The unsecured revolving credit facility contains an accordion feature that would allow us to increase the maximum aggregate principal amount to $1.25 billion under specified circumstances.

The initial maturity of the unsecured revolving credit facility is January 2019. We have the option to extend the initial term for up to two additional 6-month periods, subject to certain conditions, including the payment of an extension fee equal to 0.075% of the then outstanding commitments under the unsecured revolving credit facility.

Exchangeable Senior Notes

Issued in August 2014, the $250.0 million 2.625% Exchangeable Senior Notes (“2.625% Exchangeable Senior Notes”) are due August 15, 2019. The 2.625% Exchangeable Senior Notes will be exchangeable into cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at our election. We have asserted that it is our intent and ability to settle the principal amount of the 2.625% Exchangeable Senior Notes in cash. As of June 30, 2017, the exchange rate of the 2.625% Exchangeable Senior Notes was 51.6590 shares per $1,000 principal amount of notes (equivalent to an initial exchange price of approximately $19.36 per share of Class A common stock), subject to adjustment, as described in the related indenture governing the 2.625% Exchangeable Senior Notes.

For the three and six months ended June 30, 2017, total interest expense related to the 2.625% Exchangeable Senior Notes was $2.5 million and $4.9 million, respectively, consisting of (i) the contractual interest expense of $1.7 million and $3.3 million, respectively, (ii) the additional non-cash interest expense of $0.6 million and $1.3 million, respectively, relating to the accretion of the debt discount, and (iii) the amortization of deferred financing costs of $0.2 million and $0.3 million, respectively. For the three and six months ended June 30, 2016, total interest expense related to the 2.625% Exchangeable Senior Notes was $2.5 million and $4.9 million, respectively, consisting of (i) the contractual interest expense of $1.7 million and $3.3 million, respectively, (ii) the additional non-cash interest expense of $0.6 million and $1.3 million, respectively, relating to the accretion of the debt discount, and (iii) the amortization of deferred financing costs of $0.2 million and $0.3 million, respectively.