Debt

Bank Line of Credit and Term Loans

The Company's $2.0 billion unsecured revolving line of credit facility (the “Facility”) matures on October 19, 2021 and contains two, six-month extension options. Borrowings under the Facility accrue interest at LIBOR plus a margin that depends upon the Company’s credit ratings. The Company pays a facility fee on the entire revolving commitment that depends on its credit ratings. Based on the Company’s credit ratings at December 31, 2018, the margin on the Facility was 0.875%, and the facility fee was 0.15%. The Facility also includes a feature that allows the Company to increase the borrowing capacity by an aggregate amount of up to $750 million, subject to securing additional commitments. At December 31, 2018, the Company had $80 million, including £55 million ($70 million), outstanding under the Facility with a weighted average effective interest rate of 2.12%.

In March 2017, the Company repaid a £137 million unsecured term loan. On June 30, 2017, the Company repaid £51 million of its four-year unsecured term loan entered into in January 2015 (the "2015 Term Loan"). Concurrently, the Company terminated its three-year interest rate swap which fixed the interest of the 2015 Term Loan and therefore, beginning June 30, 2017, the 2015 Term Loan accrued interest at a rate of GBP LIBOR plus 1.15%, subject to adjustments based on the Company's credit ratings.

On July 3, 2018, the Company exercised its one-time right to repay the outstanding GBP balance and re-borrow in USD with all other key terms unchanged, which resulted in repayment of the £169 million balance and re-borrowing of $224 million. In November 2018, the Company repaid the $224 million unsecured term loan, bringing the total term loan balance to zero as of December 31, 2018.

The Facility contains certain financial restrictions and other customary requirements, including cross-default provisions to other indebtedness. Among other things, these covenants, using terms defined in the agreements: (i) limit the ratio of Consolidated Total Indebtedness to Consolidated Total Asset Value to 60%, (ii) limit the ratio of Secured Debt to Consolidated Total Asset Value to 30%, (iii) limit the ratio of Unsecured Debt to Consolidated Unencumbered Asset Value to 60%; (iv) require a minimum Fixed Charge Coverage ratio of 1.5 times; and (v) require a Minimum Consolidated Tangible Net Worth of $6.5 billion at December 31, 2018. At December 31, 2018, the Company believes it was in compliance with each of these restrictions and requirements of the Facility.

Senior Unsecured Notes

At December 31, 2018, the Company had senior unsecured notes outstanding with an aggregate principal balance of $5.3 billion. The senior unsecured notes contain certain covenants including limitations on debt, maintenance of unencumbered assets, cross-acceleration provisions and other customary terms. The Company believes it was in compliance with these covenants at December 31, 2018.

The following table summarizes the Company’s senior unsecured notes payoffs for the periods presented (dollars in thousands):



Period	Amount		Coupon Rate
Year ended December 31, 2018:
July 16, 2018⁽¹⁾	$	700,000	5.375	%
November 8, 2018	$	450,000	3.750	%
Year ended December 31, 2017:
May 1, 2017	$	250,000	5.625	%
July 27, 2017⁽²⁾	$	500,000	5.375	%
Year ended December 31, 2016:
February 1, 2016	$	500,000	3.750	%
September 15, 2016	$	400,000	6.300	%
November 30, 2016⁽³⁾	$	500,000	6.000	%
November 30, 2016⁽³⁾	$	600,000	6.700	%

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(1)	The Company recorded a $44 million loss on debt extinguishment related to the repurchase of senior notes.


(2)	The Company recorded a $54 million loss on debt extinguishment related to the repurchase of senior notes.


(3)	The Company recorded a $46 million loss on debt extinguishment related to the repurchase of senior notes.

There were no senior unsecured notes issuances for the years ended December 31, 2018, 2017, and 2016.

Mortgage Debt

At December 31, 2018, the Company had $133 million in aggregate principal of mortgage debt outstanding, which is secured by 15 healthcare facilities with a carrying value of $278 million. In March 2017, the Company paid off $472 million of mortgage debt.

Mortgage debt generally requires monthly principal and interest payments, is collateralized by real estate assets and is generally non-recourse. Mortgage debt typically restricts transfer of the encumbered assets, prohibits additional liens, restricts prepayment, requires payment of real estate taxes, requires maintenance of the assets in good condition, requires maintenance of insurance on the assets and includes conditions to obtain lender consent to enter into or terminate material leases. Some of the mortgage debt is also cross-collateralized by multiple assets and may require tenants or operators to maintain compliance with the applicable leases or operating agreements of such real estate assets.

Debt Maturities

The following table summarizes the Company’s stated debt maturities and scheduled principal repayments at December 31, 2018 (dollars in thousands):



	Bank Line of Credit⁽¹⁾		Senior Unsecured Notes⁽²⁾					Mortgage Debt⁽³⁾				Total⁽⁴⁾
Year	Bank Line of Credit⁽¹⁾		Amount			Interest Rate		Amount		Interest Rate		Total⁽⁴⁾
2019	$	—	$	—		—	%	$	3,561	—	%	$	3,561
2020	—		800,000			2.79	%	3,609		5.08	%	803,609
2021	80,103		—			—	%	10,957		5.26	%	91,060
2022	—		900,000			3.93	%	2,691		—	%	902,691
2023	—		800,000			4.39	%	2,811		—	%	802,811
Thereafter	—		2,800,000			4.34	%	109,705		4.10	%	2,909,705
	80,103		5,300,000					133,334				5,513,437
(Discounts), premium and debt costs, net	—		(41,450		)			5,136				(36,314		)
	$	80,103	$	5,258,550				$	138,470			$	5,477,123

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(1)	Includes £55 million translated into USD.


(2)	Interest rates on the notes range from 2.79% to 6.87% with a weighted average effective rate of 4.03% and a weighted average maturity of six years.


(3)	Interest rates on the mortgage debt range from 2.80% to 5.91% with a weighted average effective interest rate of 4.20% and a weighted average maturity of 19 years.


(4)	Excludes $91 million of other debt that have no scheduled maturities. Other debt represents (i) $58 million of non-interest bearing life care bonds and occupancy fee deposits at certain of the Company's senior housing facilities and (ii) $33 million of on-demand notes from the CCRC JV which bear interest at a rate of 3.6%.