UNSECURED BANK CREDIT FACILITIES

12 Months Ended

Dec. 31, 2015

Line of Credit Facility [Abstract]

UNSECURED BANK CREDIT FACILITIES

Until July 30, 2015, EastGroup had $225 million and $25 million unsecured bank credit facilities with margins over LIBOR of 117.5 basis points, facility fees of 22.5 basis points and maturity dates of January 5, 2017. The Company closed amended credit facilities on July 30, 2015. The amended agreements expand the facilities to $300 million and $35 million, reduce the current applicable margins to 100 basis points and the current applicable facility fees to 20 basis points, and extend the maturity dates to July 30, 2019.

EastGroup's amended $300 million unsecured revolving credit facility is with a group of nine banks and matures on July 30, 2019. The credit facility contains an option for a one-year extension (at the Company's election) and a $150 million expansion (with agreement by all parties). The interest rate on each tranche is usually reset on a monthly basis and as of December 31, 2015, was LIBOR plus 100 basis points with an annual facility fee of 20 basis points. The margin and facility fee are subject to changes in the Company's credit ratings. At December 31, 2015, the weighted average interest rate was 1.394% on a balance of $137,000,000.

The Company's amended $35 million agreement matures on July 30, 2019, and it contains a provision that the credit facility would automatically be extended for one year if the extension option in the $300 million facility is exercised. The interest rate is reset on a daily basis and as of December 31, 2015, was LIBOR plus 100 basis points with an annual facility fee of 20 basis points. The margin and facility fee are subject to changes in the Company's credit ratings. At December 31, 2015, the interest rate was 1.430% on a balance of $13,836,000.

Average unsecured bank credit facilities borrowings were $109,777,000 in 2015 compared to $96,162,000 in 2014 with weighted average interest rates of 1.85% in 2015 compared to 1.92% in 2014.  Weighted average interest rates (including amortization of loan costs) were 2.30% for 2015 and 2.35% for 2014.  Amortization of unsecured bank credit facilities costs was $493,000, $413,000 and $410,000 for 2015, 2014 and 2013, respectively.

The Company’s unsecured bank credit facilities have certain restrictive covenants, such as maintaining debt service coverage and leverage ratios and maintaining insurance coverage, and the Company was in compliance with all of its debt covenants at December 31, 2015.