DEBT

Secured debt decreased $89,375,000 during the nine months ended September 30, 2016. The decrease primarily resulted from the repayment of two mortgage loans with a combined balance of $75,737,000 and regularly scheduled principal payments of $13,558,000.

Properties encumbered by EastGroup's Secured debt were disclosed in the Company's Form 10-K for the year ended December 31, 2015. During the nine months ended September 30, 2016, the Company closed collateral substitutions for two of its secured loans. The first collateral substitution was for a loan previously secured by America Plaza, Central Green, Glenmont, West Loop, World Houston 3-9, Interstate I-III, Rojas, Stemmons Circle and Venture. Colorado Crossing in Austin and Steele Creek 1 & 2 in Charlotte were substituted for America Plaza, Central Green, Glenmont and West Loop in Houston.

The second collateral substitution was for a loan previously secured by 40th Avenue, Beltway Crossing V, Centennial Park, Executive Airport, Ocean View, Techway Southwest IV, Wetmore 5-8 and World Houston 26, 28, 29 and 30. Interchange Park I in Charlotte was substituted for Techway Southwest IV in Houston.

Unsecured debt increased $24,825,000 during the nine months ended September 30, 2016, primarily due to the closing of senior unsecured term loans totaling $105 million, partially offset by the repayment of an $80 million unsecured term loan.

The Company closed a $65 million senior unsecured term loan on April 1, 2016 with a seven-year term and interest only payments. The loan bears interest at the annual rate of LIBOR plus an applicable margin (currently 1.65%) based on the Company's senior unsecured long-term debt rating. The Company also entered into an interest rate swap agreement to convert the loan's LIBOR rate component to a fixed interest rate for the entire term of the loan providing a total effective fixed interest rate of 2.863%.

EastGroup closed a $40 million senior unsecured term loan on July 29, 2016 with a five-year term and interest only payments. The loan bears interest at the annual rate of LIBOR plus an applicable margin (currently 1.10%) based on the Company's senior unsecured long-term debt rating. The Company also entered into an interest rate swap agreement to convert the loan's LIBOR rate component to a fixed interest rate for the entire term of the loan providing a total effective fixed interest rate of 2.335%.

In August 2016, EastGroup repaid (with no penalty) an $80 million unsecured term loan with an effectively fixed interest rate of 2.770% and an original maturity date of August 15, 2018. On the same day, the Company borrowed $80 million through its $300 million unsecured bank credit facility; the maturity date for the credit facility is July 30, 2019. The Company re-designated the interest rate swap that was previously applied to the $80 million unsecured term loan to the $80 million unsecured bank credit facility borrowing. The $80 million unsecured bank credit facility draw has an effectively fixed interest rate of 2.020% through the interest rate swap's maturity date of August 15, 2018.

Unsecured bank credit facilities increased $56,037,000 during the nine months ended September 30, 2016, mainly due to proceeds of $444,314,000 (including the $80 million draw on August 15, 2016) exceeding repayments of $388,569,000 during the period.

In connection with the adoption of ASU 2015-03, which is described in further detail in Note 17, the Company presents debt issuance costs as reductions of Secured debt, Unsecured debt and Unsecured bank credit facilities on the Consolidated Balance Sheets as detailed below.



	September 30, 2016			December 31, 2015
	(In thousands)
Secured debt - fixed rate, carrying amount	$	262,081		351,401
Unamortized debt issuance costs	(1,171		)	(1,116	)
Secured debt	260,910			350,285

Unsecured debt - fixed rate, carrying amount ⁽¹⁾	555,000			530,000
Unamortized debt issuance costs	(1,965		)	(1,790	)
Unsecured debt	553,035			528,210

Unsecured bank credit facilities - variable rate, carrying amount	126,581			150,836
Unsecured bank credit facilities - fixed rate, carrying amount ⁽¹⁾	80,000			—
Unamortized debt issuance costs	(1,130		)	(1,422	)
Unsecured bank credit facilities	205,451			149,414

Total debt	$	1,019,396		1,027,909


(1)	These loans have a fixed interest rate or an effectively fixed interest rate due to interest rate swaps.

Scheduled principal payments on long-term debt, including Secured debt and Unsecured debt (not including Unsecured bank credit facilities), as of September 30, 2016 are as follows:



Years Ending December 31,	(In thousands)
Remainder of 2016	$	3,485
2017	58,239
2018	61,316
2019	130,569
2020	114,097
2021 and beyond	449,375
Total	$	817,081