Capital and Financing Transactions (Tables)

12 Months Ended

Dec. 31, 2014

Summary of outstanding credit facilities

At December 31, 2014, the Company had a total of $481.5 million outstanding under the following credit facilities (in thousands):



Credit Facilities	Interest Rate		Maturity	Outstanding Balance
$10.0 Million Working Capital Revolving Credit Facility	1.7	%	03/30/2018	$	—
$250.0 Million Revolving Credit Facility	1.6	%	03/30/2018	131,500
$250.0 Million Five-Year Term Loan	2.5	%	03/29/2019	250,000
$100.0 Million Seven-Year Term Loan	4.3	%	03/31/2021	100,000
				$	481,500

At December 31, 2013, the Company had a total of $303.0 million outstanding under the following credit facilities (in thousands):



Credit Facilities	Interest Rate		Maturity	Outstanding Balance
$10.0 Million Unsecured Working Capital Revolving Credit Facility	—	%	03/29/2016	$	—
$215.0 Million Unsecured Revolving Credit Facility	2.0	%	03/29/2016	58,000
$125.0 Million Unsecured Term Loan (1)	2.5	%	09/27/2017	125,000
$120.0 Million Term Loan Facility (2)	3.3	%	06/11/2018	120,000
				$	303,000

(1)

Effective October 1, 2012, the Company executed two floating-to-fixed interest rate swaps associated with the Term Loan Facility totaling $125 million, locking LIBOR at 0.7% for five years. The loan bears interest at LIBOR plus the applicable spread which ranges between 150 to 225 basis points based on overall Company leverage. The current spread associated with the loan is 1.75% resulting in an all-in rate of 2.45%.

(2)

Effective June 12, 2013, the Company entered into a new floating-to-fixed interest rate swap associated with a New Term Loan Facility totaling $120 million, locking LIBOR at 1.6% for five years. The loan bears interest at LIBOR plus the applicable spread which ranges between 145 to 220 basis points based on overall Company leverage. The current spread associated with the loan is 1.7% resulting in an all-in rate of 3.3%.

Summary of mortgage notes payable

A summary of mortgage notes payable at December 31, 2014 and 2013 is as follows (in thousands):



	Variable	Fixed	Maturity	Monthly		December 31,
Office and Parking Properties	Rate	Rate (1)	Date	Payment		2014		2013
Wholly Owned
Westshore Corporate Center		2.5%	05/01/2015	$	88	$	14,091	$	14,312
Teachers Insurance and Annuity Associations (5 properties)		6.2%	01/01/2016	565		68,884		71,307
John Hancock Facility (2 properties)		7.6%	06/01/2016	130		17,398		17,634
3350 Peachtree, formerly Capital City Plaza		7.3%	03/05/2017	253		32,185		32,860
One Orlando Centre		4.6%	05/11/2017	265		54,000		—
One Congress Plaza		3.2%	06/11/2017	649		128,000		—
San Jacinto Center		3.2%	06/11/2017	509		101,000		—
The Pointe		4.0%	02/10/2019	78		23,500		23,500
Corporate Center IV (2)		4.6%	04/08/2019	129		36,000		36,000
Raymond James Tower (3)		7.6%	10/01/2019	—		—		9,211
Citrus Center		6.3%	06/01/2020	153		21,138		21,601
Bank of America Center (4)		4.7%	05/18/2018	—		—		33,875
Stein Mart		6.5%	08/01/2020	81		11,041		11,286
Phoenix Tower		3.9%	03/01/2023	258		80,000		80,000
Deerwood North and South		3.9%	04/01/2023	276		84,500		84,500
Lincoln Place		3.6%	06/11/2016	293		48,670		49,317
CityWestPlace I & II		3.5%	07/06/2016	738		116,111		117,663
CityWestPlace III & IV		4.3%	03/05/2020	512		91,889		93,367
San Felipe Plaza		4.3%	12/01/2018	576		109,585		110,000
Total Wholly Owned				$	5,553	$	1,037,992	$	806,433

Parkway Properties Office Fund II, LP
3344 Peachtree		5.3%	10/01/2017	485		82,907		84,739
Hayden Ferry Lakeside I (2)		4.5%	07/25/2018	112		21,887		22,000
Hayden Ferry Lakeside II & IV (2)		4.5%	07/25/2018	163		46,875		46,875
Hayden Ferry Lakeside III	2.0%		07/25/2018	1		481		—
245 Riverside (2)		5.2%	03/31/2019	51		9,166		9,250
Two Ravinia (2)		5.0%	05/20/2019	86		22,100		22,100
Two Liberty Place		5.2%	06/10/2019	391		90,200		90,200
Total Fund II				$	1,289	$	273,616	$	275,164
Unamortized premium, net						$	27,842	$	15,896
Total Mortgage Notes Payable				$	6,842	$	1,339,450	$	1,097,493


(1)	This represents the net effective interest rate.


(2)	Property has entered into an interest rate swap agreement with the Lender associated with these mortgage loans.


(3)	The first mortgage secured by Raymond James Tower was prepaid in full on December 31, 2014, and the asset was sold on January 15, 2015. The Company incurred a $2.1 million loss on extinguishment of debt as a result of the debt prepayment.


(4)	On December 23, 2013, the Company acquired its partner's 70.0% ownership interest in Bank of America Center. No changes were made to the size, structure or terms of the mortgage note secured by the property.

Aggregate annual maturities of mortgage notes payable

The aggregate annual maturities of mortgage notes payable at December 31, 2014 are as follows (in thousands):



	Total Mortgage Maturities		Debt Balloon Payments		Debt Principal Amortization
2015	$	30,005	$	14,013	$	15,992
2016	260,594		244,747		15,847
2017	405,525		390,939		14,586
2018	179,443		162,710		16,733
2019	175,947		167,935		8,012
Thereafter	260,094		245,476		14,618
Total principal maturities	1,311,608		1,225,820		85,788
Unamortized premium, net	27,842		N/A		N/A
Total principal maturities and fair value premium on mortgage debt acquired	$	1,339,450	$	1,225,820	$	85,788

Summary of interest rate hedge contracts

The Company's interest rate hedge contracts at December 31, 2014 and 2013 are summarized as follows (in thousands):



							Asset (Liability) Balance
							December 31,
Type of Hedge	Balance Sheet Location	Associated Loan	Notional Amount	Maturity Date	Reference Rate	Fixed Rate	2014			2013
Swap	Receivables and Other Assets	5-year term loan	50,000	09/27/2017	1-month LIBOR	0.7%	452			769
Swap	Account payable and other liabilities	5-year term loan	120,000	06/11/2018	1-month LIBOR	1.6%	(1,438		)	(985		)
Swap	Account payable and other liabilities	Corporate Center IV	13,671	10/08/2018	1-month LIBOR	3.3%	(18		)	90
Swap	Receivables and Other Assets	5-year term loan	75,000	09/27/2017	1-month LIBOR	0.7%	679			1,162
Swap	Account payable and other liabilities	Hayden Ferry Lakeside II	3,750	01/25/2018	1-month LIBOR	1.7%	(71		)	(49		)
Swap	Account payable and other liabilities	Bank of America Center	33,875	11/18/2017	1-month LIBOR	4.7%	—			(1,973		)
Swap	Account payable and other liabilities	Hayden Ferry Lakeside I	21,887	01/25/2018	1-month LIBOR	4.5%	(877		)	(1,067		)
Swap	Account payable and other liabilities	Hayden Ferry Lakeside II	43,125	01/25/2018	1-month LIBOR	1.5%	(413		)	(383		)
Swap	Account payable and other liabilities	245 Riverside	9,166	09/30/2018	1-month LIBOR	5.2%	(617		)	(703		)
Swap	Account payable and other liabilities	Corporate Center IV	22,329	10/08/2018	1-month LIBOR	5.4%	(1,613		)	(1,843		)
Swap	Account payable and other liabilities	Two Ravinia	22,100	11/18/2018	1-month LIBOR	5.0%	(1,317		)	(1,427		)
Swap	Account payable and other liabilities	5 year term loan	5,000	04/01/2019	1-month LIBOR	1.7%	(60		)	—
Swap	Account payable and other liabilities	7 year term loan	100,000	03/31/2021	1-month LIBOR	2.6%	(4,652		)	—
							$	(9,945	)	$	(6,409	)

Derivative financial instruments

The table below presents the effect of the Company's derivative financial instruments on the Company's consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2014, 2013, and 2012 (in thousands):



	Year Ended
Derivatives in Cash Flow Hedging Relationships (Interest Rate Swaps)	December 31,
	2014			2013			2012
Amount of gain (loss) recognized in other comprehensive income on derivative	$	(10,968	)	$	4,110		$	(7,413	)
Amount of loss reclassified from accumulated other comprehensive income into interest expense	(7,445		)	(5,615		)	(4,117		)
Amount of gain reclassified from accumulated other comprehensive income into non-cash expense on interest rate swap included in discontinued operations	—			—			215
Amount of loss recognized in income on derivative (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing)	(212		)	(390		)	—