Debt

6 Months Ended

Jun. 30, 2020

The following table summarizes our mortgages, notes payable, revolving credit facility and finance lease obligation as of June 30, 2020 and December 31, 2019:


Notes Payable and Finance Lease Obligation	June 30, 2020		December 31, 2019
	(In thousands)
Senior unsecured notes	$	535,000	$	535,000
Unsecured term loan facilities	310,000		310,000
Fixed rate mortgages	86,455		87,581
Unsecured revolving credit facility	175,000		—

	1,106,455		932,581
Unamortized premium	1,541		1,995
Unamortized deferred financing costs	(4,000)		(3,768)
Total notes payable	$	1,103,996	$	930,808

Finance lease obligation	$	926	$	926

Senior Unsecured Notes

The following table summarizes the Company's senior unsecured notes:


		June 30, 2020						December 31, 2019
Senior Unsecured Notes	Maturity Date	Principal Balance		Interest Rate/Weighted Average Interest Rate		Principal Balance		Interest Rate/Weighted Average Interest Rate
		(in thousands)				(in thousands)
Senior unsecured notes	6/27/2021	$	37,000	3.75	%	$	37,000	3.75	%
Senior unsecured notes	6/27/2023	41,500		4.12	%	41,500		4.12	%
Senior unsecured notes	5/28/2024	50,000		4.65	%	50,000		4.65	%
Senior unsecured notes	11/18/2024	25,000		4.05	%	25,000		4.05	%
Senior unsecured notes	6/27/2025	31,500		4.27	%	31,500		4.27	%
Senior unsecured notes	7/6/2025	50,000		4.20	%	50,000		4.20	%
Senior unsecured notes	9/30/2025	50,000		4.09	%	50,000		4.09	%
Senior unsecured notes	5/28/2026	50,000		4.74	%	50,000		4.74	%
Senior unsecured notes	11/18/2026	25,000		4.28	%	25,000		4.28	%
Senior unsecured notes	12/21/2027	30,000		4.57	%	30,000		4.57	%
Senior unsecured notes	11/30/2028	75,000		3.64	%	75,000		3.64	%
Senior unsecured notes	12/21/2029	20,000		4.72	%	20,000		4.72	%
Senior unsecured notes	12/27/2029	50,000		4.15	%	50,000		4.15	%
		$	535,000	4.20	%	$	535,000	4.20	%
Unamortized deferred financing costs		(1,898)				(1,460)
	Total	$	533,102			$	533,540

Unsecured Term Loan Facilities and Revolving Credit Facility

The following table summarizes the Company's unsecured term loan facilities and revolving credit facility:


		June 30, 2020						December 31, 2019
Unsecured Credit Facilities	Maturity Date	Principal Balance		Interest Rate/Weighted Average Interest Rate		Principal Balance		Interest Rate/Weighted Average Interest Rate
		(in thousands)				(in thousands)
Unsecured term loan - fixed rate ⁽¹⁾	3/3/2023	$	60,000	2.97	%	$	60,000	2.97	%
Unsecured term loan - fixed rate ⁽²⁾	11/6/2024	50,000		2.46	%	50,000		2.91	%
Unsecured term loan - fixed rate ⁽³⁾	2/6/2025	50,000		2.52	%	50,000		2.66	%
Unsecured term loan - fixed rate ⁽⁴⁾	11/6/2026	50,000		2.90	%	50,000		3.31	%
Unsecured term loan - fixed rate ⁽⁵⁾	2/5/2027	100,000		3.07	%	100,000		3.25	%
		$	310,000	2.84	%	$	310,000	3.06	%
Unamortized deferred financing costs		(2,102)				(2,308)
Term loans, net		$	307,898			$	307,692

Revolving credit facility - variable rate	11/6/2023	$	175,000	1.28	%	—		2.80	%

⁽¹⁾Swapped to a weighted average fixed rate of 1.77%, plus a credit spread of 1.20%, based on a leverage grid at June 30, 2020.

⁽²⁾Swapped to a weighted average fixed rate of 1.26%, plus a credit spread of 1.20%, based on a leverage grid at June 30, 2020.

⁽³⁾Swapped to a weighted average fixed rate of 1.32%, plus a credit spread of 1.20%, based on a leverage grid at June 30, 2020.

⁽⁴⁾Swapped to a weighted average fixed rate of 1.30%, plus a credit spread of 1.60%, based on a leverage grid at June 30, 2020.

⁽⁵⁾Swapped to a weighted average fixed rate of 1.47%, plus a credit spread of 1.60%, based on a leverage grid at June 30, 2020.

As of June 30, 2020 we had $175.0 million outstanding under our unsecured revolving credit facility, an increase of $175.0 million from December 31, 2019, as a result of borrowings in March 2020 to strengthen the Company's liquidity position due to the COVID-19 pandemic. We had no outstanding letters of credit issued under our revolving credit facility as of June 30, 2020. We had $175.0 million of unused capacity under our $350.0 million unsecured revolving credit facility that could be borrowed subject to compliance with applicable financial covenants. Based on our recent borrowings under our revolving credit facility to enhance our liquidity position, our current amount of outstanding indebtedness is close to the maximum permitted amount under the covenants contained in our revolving credit facility, and as a result our ability to retain our outstanding borrowings and utilize the limited remaining amount available under our revolving credit facility would depend on our continued compliance with financial covenants and other terms of our revolving credit agreement, which may be impacted by certain factors including tenant store closures and the nonpayment of rent, unless we obtain waivers or modifications to our loan document covenants. These covenants are generally based on our financial results from the most recently completed four fiscal quarters and, as a result, the impact on these financial covenants from adverse short-term impacts on operating results is partially mitigated by previous and/or subsequent operating results. The interest rate as of June 30, 2020 was 1.28%.

Mortgages

The following table summarizes the Company's fixed rate mortgages:


		June 30, 2020						December 31, 2019
Mortgage Debt	Maturity Date	Principal Balance		Interest Rate/Weighted Average Interest Rate		Principal Balance		Interest Rate/Weighted Average Interest Rate
		(in thousands)				(in thousands)
Bridgewater Falls Shopping Center	2/6/2022	$	52,857	5.70	%	$	53,423	5.70	%
The Shops on Lane Avenue	1/10/2023	28,433		3.76	%	28,650		3.76	%
Nagawaukee II	6/1/2026	5,165		5.80	%	5,508		5.80	%
		$	86,455	5.07	%	$	87,581	5.07	%
Unamortized premium		1,541				1,995
	Total	$	87,996			$	89,576

The fixed rate mortgages are secured by properties that have an approximate net book value of $149.2 million as of June 30, 2020.

The mortgage loans encumbering our properties are generally nonrecourse, subject to certain exceptions for which we would be liable for any resulting losses incurred by the lender. These exceptions vary from loan to loan but generally include fraud or a material misrepresentation, misstatement or omission by the borrower, intentional or grossly negligent conduct by the borrower that harms the property or results in a loss to the lender, filing of a bankruptcy petition by the borrower, either directly or indirectly and certain environmental liabilities. In addition, upon the occurrence of certain events, such as fraud or filing of a bankruptcy petition by the borrower, we or our joint ventures would be liable for the entire outstanding balance of the loan, all interest accrued thereon and certain other costs, including penalties and expenses.

Covenants

On June 30, 2020, the Company entered into amendments to the note purchase agreements governing all of the Company's outstanding senior unsecured notes. The following is a summary of the material amendments:

•The occupancy tests relating to the minimum ratio of consolidated total unencumbered asset value to unsecured indebtedness were eliminated during the period from June 30, 2020 through and including September 30, 2021 (the “Specified Period”) and were otherwise reduced during the fiscal quarters ended December 31, 2021 and March 31, 2022;

•The minimum ratio of consolidated total unencumbered asset value to unsecured indebtedness that the Operating Partnership is required to maintain was reduced during the Specified Period; and

•The Operating Partnership agreed to a minimum liquidity requirement during the Specified Period.

Our revolving credit facility, senior unsecured notes as amended and term loan facilities contain financial covenants relating to total leverage, fixed charge coverage ratio, unencumbered assets, tangible net worth and various other calculations. As of June 30, 2020, we were in compliance with these covenants.

Debt Maturities

The following table presents scheduled principal payments on mortgages, notes payable and revolving credit facility as of June 30, 2020:


Year Ending December 31,
	(In thousands)
2020 (remaining)	$	1,201
2021	39,508
2022	52,397
2023 ⁽¹⁾	304,388
2024	125,879
Thereafter	583,082
Subtotal debt	1,106,455
Unamortized premium	1,541
Unamortized deferred financing costs	(4,000)
Total debt	$	1,103,996

⁽¹⁾Scheduled maturities in 2023 include the $175.0 million balance on the unsecured revolving credit facility drawn as of June 30, 2020. The unsecured revolving credit facility has two six-month extensions available at the Company's option provided compliance with financial covenants is maintained.