DEBT

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Debt Disclosure

DEBT

The Company’s debt is detailed below:

	March 31, 2024		December 31, 2023
	(In thousands)
Unsecured bank credit facilities — variable rate, carrying amount	$	—	—
Unamortized debt issuance costs	(1,281)		(1,520)
Unsecured bank credit facilities, net of debt issuance costs	(1,281)		(1,520)
Unsecured debt — fixed rate, carrying amount (1)	1,680,000		1,680,000
Unamortized debt issuance costs	(3,427)		(3,653)
Unsecured debt, net of debt issuance costs	1,676,573		1,676,347
Total unsecured debt, net of debt issuance costs	$	1,675,292	1,674,827

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

The Company has a $625,000,000 unsecured bank credit facility with a group of 11 banks; the facility has a maturity date of July 30, 2025. The credit facility contains options for two six-month extensions (at the Company's election) and an additional $125,000,000 accordion (with agreement by all parties). The interest rate on each tranche is reset on a monthly basis and as of March 31, 2024, was Secured Overnight Financing Rate (“SOFR”) plus 76.5 basis points with an annual facility fee of 15 basis points. As of March 31, 2024, the Company had no variable rate borrowings on this unsecured bank credit facility and an interest rate of 6.194%. The Company has two standby letters of credit totaling $2,655,000 pledged on this facility, which reduces borrowing capacity under the credit facility.

The Company also has a $50,000,000 unsecured bank credit facility with a maturity date of July 30, 2025, or such later date as designated by the bank; the Company also has two six-month extensions available if the extension options in the $625,000,000 facility are exercised. The interest rate is reset on a daily basis and as of March 31, 2024, was SOFR plus 77.5 basis points with an annual facility fee of 15 basis points. As of March 31, 2024, the interest rate was 6.215% with no outstanding balance.

For both facilities, the margin and facility fee are subject to changes in the Company's credit ratings. Although the Company’s current credit rating is Baa2, given the strength of the Company’s key credit metrics, initial pricing for the credit facilities is based on the BBB+/Baa1 credit ratings level. This favorable pricing level will be retained provided that the Company’s consolidated leverage ratio, as defined in the applicable agreements, remains less than 32.5%. The $625,000,000 facility also includes a sustainability-linked pricing component pursuant to which the applicable interest margin is reduced by one basis point if the Company meets a certain sustainability performance target. This sustainability metric is evaluated annually and was achieved for the years ended December 31, 2023 and 2022, which allowed for the interest rate reduction in each of the years subsequent to achieving the metric. The margin was effectively reduced on this unsecured bank credit facility by one basis point, from 77.5 to 76.5 basis points.

Scheduled principal payments on long-term debt, including Unsecured debt, net of debt issuance costs (not including Unsecured bank credit facilities, net of debt issuance costs), as of March 31, 2024, are as follows: 

Years Ending December 31,	(In thousands)
2024 — Remainder of year	$	170,000
2025	145,000
2026	140,000
2027	175,000
2028	160,000
2029 and beyond	890,000
Total	$	1,680,000