Debt Obligations (Tables)

12 Months Ended

Dec. 31, 2014

The following table sets forth information regarding the Company’s consolidated debt obligations outstanding at December 31, 2014 and 2013 (in thousands):



	December 31, 2014			December 31, 2013			Effective Interest Rate			Maturity Date
MORTGAGE DEBT:

Tysons Corner	$	89,513		$	91,395		5.36	%		Aug 2015
One Commerce Square	123,205			125,089			3.68	%	(a)	Jan 2016
Two Logan Square	87,767			88,583			7.57	%		Apr 2016
Fairview Eleven Tower	21,242			21,630			4.25	%	(b)	Jan 2017
Two Commerce Square	112,000			112,000			4.51	%	(a)	Apr 2023
IRS Philadelphia Campus	184,442			190,964			7.00	%		Sep 2030
Cira South Garage	37,765			40,101			7.12	%		Sep 2030
Principal balance outstanding	655,934			669,762
Plus: fair market value premiums (discounts), net	(1,344		)	389
Total mortgage indebtedness	$	654,590		$	670,151
UNSECURED DEBT:
Three-Year Term Loan - Swapped to fixed	$	—		$	150,000		2.60	%	(c)	Feb 2015
Four-Year Term Loan	—			100,000			LIBOR + 1.75%		(c), (d)	Feb 2016
Seven-Year Term Loan - Swapped to fixed	200,000			200,000			3.62	%		Feb 2019
$250.0M 5.40% Guaranteed Notes due 2014	—			218,549			5.53	%	(e)	Nov 2014
$250.0M 7.50% Guaranteed Notes due 2015	—			157,625			7.76	%	(e)	May 2015
$250.0M 6.00% Guaranteed Notes due 2016	149,919			149,919			5.95	%		Apr 2016
$300.0M 5.70% Guaranteed Notes due 2017	300,000			300,000			5.68	%		May 2017
$325.0M 4.95% Guaranteed Notes due 2018	325,000			325,000			5.13	%		Apr 2018
$250.0M 3.95% Guaranteed Notes due 2023	250,000			250,000			4.02	%		Feb 2023
$250.0M 4.10% Guaranteed Notes due 2024	250,000			—			4.23	%	(e)	Oct 2024
$250.0M 4.55% Guaranteed Notes due 2029	250,000			—			4.60	%	(e)	Oct 2029
Indenture IA (Preferred Trust I)	27,062			27,062			2.75	%		Mar 2035
Indenture IB (Preferred Trust I)	25,774			25,774			3.30	%		Apr 2035
Indenture II (Preferred Trust II)	25,774			25,774			3.09	%		Jul 2035
Principal balance outstanding	1,803,529			1,929,703
plus: original issue premium (discount), net	(6,811		)	(4,473		)
Total unsecured indebtedness	$	1,796,718		$	1,925,230
Total Debt Obligations	$	2,451,308		$	2,595,381


(a)	This loan was assumed upon acquisition of the related properties on December 19, 2013. The interest rate reflects the market rate at the time of acquisition.


(b)	Represents the full debt amount of a property in a consolidated joint venture for which the Company maintains a 50% interest.


(c)	On September 16, 2014, the Company repaid all balances outstanding under its $150.0 million three-year term loan and its $100.0 million four-year term loan prior to the scheduled maturity dates of February 1, 2015 and February 1, 2016, respectively.


(d)	London Interbank Offered Rate (“LIBOR”).

(e)

On September 16, 2014, the Company closed on an underwritten offering of $250.0 million 4.10% Guaranteed Notes due 2024 (the "2024 Notes") and $250.0 million 4.55% Guaranteed Notes due 2029 (the "2029 Notes"). The Company used the net proceeds, together with cash on hand, to redeem the remaining outstanding balance of its 5.40% Guaranteed Notes due November 1, 2014 (the "2014 Notes") and its 7.50% Guaranteed Notes due May 15, 2015 (the "2015 Notes"). (See further discussion below).

Summary of debt repurchases

The following table provides additional information on the Company’s repurchase of $376.2 million in aggregate principal amount of its outstanding unsecured notes (consisting of the 2014 Notes and 2015 Notes, as indicated above) during the twelve months ended December 31, 2014 (in thousands):



Notes	Principal		Repurchase Amount (a)		Gain (Loss) on Early Extinguishment of Debt (b)			Acceleration of Deferred Financing Amortization
2014 5.40% Notes	$	218,549	$	219,404	$	(855	)	$	9
2015 7.50% Notes	157,625		164,364		(6,739		)	143
	$	376,174	$	383,768	$	(7,594	)	$	152

During the year-ended December 31, 2013, the Company repurchased $29.3 million of its outstanding unsecured Notes in a series of transactions that are summarized in the following table (in thousands):



Notes	Principal		Repurchase Amount (a)		Gain (Loss) on Early Extinguishment of Debt (b)			Acceleration of Deferred Financing Amortization
2014 5.40% Notes	$	19,830	$	20,853	$	(1,020	)	$	16
2015 7.50% Notes	8,910		9,945		(1,036		)	23
2016 6.00% Notes	510		571		(63		)	1
	$	29,250	$	31,369	$	(2,119	)	$	40

During the year-ended December 31, 2012, the Company repurchased $165.0 million of its outstanding unsecured Notes in a series of transactions that are summarized in the following table (in thousands):



Notes	Principal		Repurchase Amount (a) (c)		Gain (Loss) on Early Extinguishment of Debt (b)			Acceleration of Deferred Financing Amortization
2012 5.75% Notes	$	301	$	303	$	(2	)	$	—
2014 5.40% Notes	4,302		4,566		(264		)	8
2015 7.50% Notes	60,794		69,497		(8,712		)	183
2016 6.00% Notes	99,571		112,541		(13,024		)	260
	$	164,968	$	186,907	$	(22,002	)	$	451


(a)	Includes cash losses with respect to redemption of debt.


(b)	Includes unamortized balance of the original issue discount.


(c)	Does not include $151.2 million of 5.75% Guaranteed Notes due 2012 that matured.

Schedule of principal payments of debt obligations

As of December 31, 2014, the aggregate principal payments of recourse and non-recourse debt payable to third-parties are as follows (in thousands):



2015	$	279,351
2016	133,809
2017	44,465
2018	231,030
2019	182,522
Thereafter	93,900
	$	965,077

As of December 31, 2014, the Company’s aggregate scheduled principal payments of debt obligations, excluding amortization of discounts and premiums, were as follows (in thousands):



2015	$	102,030
2016	367,703
2017	330,323
2018	336,954
2019	213,155
Thereafter	1,109,298
Total principal payments	2,459,463
Net unamortized premiums/(discounts)	(8,155		)
Outstanding indebtedness	$	2,451,308