Debt Obligations (Tables)

9 Months Ended

Sep. 30, 2017

The following table sets forth information regarding the Company’s consolidated debt obligations outstanding at September 30, 2017 and December 31, 2016 (in thousands):

	September 30, 2017			December 31, 2016			Effective Interest Rate			Maturity Date
MORTGAGE DEBT:

Two Logan Square	$	84,839		$	86,012			3.98%		May 2020
One Commerce Square		124,518			127,026			3.64%	(a)	Apr 2023
Two Commerce Square		112,000			112,000			4.51%	(b)	Apr 2023
Principal balance outstanding		321,357			325,038
Plus: fair market value premium (discount), net		(2,434	)		(2,761	)
Less: deferred financing costs		(606	)		(728	)
Mortgage indebtedness	$	318,317		$	321,549

UNSECURED DEBT
$600.0M Revolving Credit Facility	$	178,000		$	-		LIBOR + 1.20%			May 2019
Seven-Year Term Loan - Swapped to fixed		250,000			250,000			3.72%		Oct 2022
$300.0M 5.70% Guaranteed Notes due 2017 (c)		-			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			250,000			4.33%		Oct 2024
$250.0M 4.55% Guaranteed Notes due 2029		250,000			250,000			4.60%		Oct 2029
Indenture IA (Preferred Trust I) - Swapped to fixed		27,062			27,062			2.75%		Mar 2035
Indenture IB (Preferred Trust I) - Swapped to fixed		25,774			25,774			3.30%		Apr 2035
Indenture II (Preferred Trust II) - Swapped to fixed		25,774			25,774			3.09%		Jul 2035
Principal balance outstanding		1,581,610			1,703,610
Plus: original issue premium (discount), net		(3,937	)		(4,678	)
Less: deferred financing costs		(6,350	)		(7,369	)
Total unsecured indebtedness	$	1,571,323		$	1,691,563
Total Debt Obligations	$	1,889,640		$	2,013,112

(a)

This loan was assumed upon acquisition of the related properties on December 19, 2013. On December 29, 2015, the Company refinanced the debt increasing the principal balance to $130.0 million and extended the scheduled maturity date from January 6, 2016 to April 5, 2023. The effective interest rate as of December 31, 2015 was 3.64%. A default under this loan will also constitute a default under the loan secured by Two Commerce Square. This loan is also secured by a lien on Two Commerce Square.

(b)

This loan was assumed upon acquisition of the related property on December 19, 2013. The interest rate reflects the market rate at the time of acquisition. A default under this loan will also constitute a default under the loan secured by One Commerce Square. This loan is also secured by a lien on One Commerce Square.

(c)

On May 1, 2017, the entire principal balance of the unsecured 5.70% Guaranteed Notes was repaid upon maturity. Available cash balances and the Credit Facility (as defined below) were used to fund the repayment of the unsecured notes.

Schedule of Maturities of Long-term Debt

As of September 30, 2017, the Company’s aggregate scheduled principal payments of debt obligations, excluding amortization of discounts and premiums, are as follows (in thousands):

2017 (three months remaining)	$	1,250
2018		331,601
2019		185,360
2020		86,978
2021		6,099
Thereafter		1,291,679
Total principal payments		1,902,967
Net unamortized premiums/(discounts)		(6,371	)
Net deferred financing costs		(6,956	)
Outstanding indebtedness	$	1,889,640