DEBT

6 Months Ended

Jun. 30, 2019

The Company’s debt is detailed below. EastGroup presents debt issuance costs as reductions of Unsecured bank credit facilities, Unsecured debt and Secured debt on the Consolidated Balance Sheets.



	June 30, 2019			December 31, 2018
	(In thousands)
Unsecured bank credit facilities - variable rate, carrying amount	$	195,880		195,730
Unamortized debt issuance costs	(1,553		)	(1,804	)
Unsecured bank credit facilities	194,327			193,926

Unsecured debt - fixed rate, carrying amount ⁽¹⁾	805,000			725,000
Unamortized debt issuance costs	(1,466		)	(1,600	)
Unsecured debt	803,534			723,400

Secured debt - fixed rate, carrying amount ⁽¹⁾	137,941			189,038
Unamortized debt issuance costs	(448		)	(577	)
Secured debt	137,493			188,461

Total debt	$	1,135,354		1,105,787


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

Until June 14, 2018, EastGroup had $300 million and $35 million unsecured bank credit facilities with margins over LIBOR of 100 basis points, facility fees of 20 basis points and maturity dates of July 30, 2019. The Company amended and restated these credit facilities on June 14, 2018, expanding the capacity to $350 million and $45 million, as detailed below.

The $350 million unsecured bank credit facility is with a group of nine banks and has a maturity date of July 30, 2022. The credit facility contains options for two six-month extensions (at the Company’s election) and a $150 million accordion (with agreement by all parties). The interest rate on each tranche is usually reset on a monthly basis and as of June 30, 2019, 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. The Company had designated an interest rate swap to an $80 million unsecured bank credit facility draw that effectively fixed the interest rate on the $80 million draw to 2.020% through the interest rate swap’s maturity date. This swap matured on August 15, 2018, and the $80 million draw has reverted to the variable interest rate associated with the Company’s unsecured bank credit facilities. As of June 30, 2019, the Company had $165,000,000 of variable rate borrowings on this unsecured bank credit facility with a weighted average interest rate of 3.398%. The Company has a standby letter of credit of $674,000 pledged on this facility.

The Company’s $45 million unsecured bank credit facility has a maturity date of July 30, 2022, or such later date as designated by the bank; the Company also has two six-month extensions available if the extension options in the $350 million facility are exercised. The interest rate is reset on a daily basis and as of June 30, 2019, 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. As of June 30, 2019, the interest rate was 3.398% on a balance of $30,880,000.

In March 2019, the Company closed $80 million of senior unsecured private placement notes with an insurance company. The notes have a 10-year term and a fixed interest rate of 4.27% with semi-annual interest payments. The notes will not be and have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Scheduled principal payments on long-term debt, including Unsecured debt and Secured debt (not including Unsecured bank credit facilities), as of June 30, 2019, are as follows:



Years Ending December 31,	(In thousands)
2019 - Remainder of year	$	79,469
2020	114,096
2021	129,562
2022	107,770
2023	115,119
2024 and beyond	396,925
Total	$	942,941