Notes Payable and Unsecured Credit Facilities

The Company’s outstanding debt consisted of the following:



(in thousands)	June 30, 2016			December 31, 2015
Notes payable:
Fixed rate mortgage loans	$	429,273		475,214
Variable rate mortgage loans	54,154		⁽¹⁾	34,154
Fixed rate unsecured loans	1,191,204			1,190,403
Total notes payable	1,674,631			1,699,771
Unsecured credit facilities:
Line of Credit (the "Line")	145,000			—
Term Loan	164,585			164,514
Total unsecured credit facilities	309,585			164,514
Total debt outstanding	$	1,984,216		1,864,285

⁽¹⁾ As of June 30, 2016, the amount consists of two mortgages with variable interest rates of one month LIBOR plus 150 basis points and which mature on October 16, 2020 and April 1, 2023, respectively. Interest rate swaps are in place fixing the interest rates at 3.696% on $28.1 million and 2.803% on $20.0 million, respectively, of these two variable rate mortgages. See note 5.

As of June 30, 2016 , the key interest rates of the Company's notes payables and credit facilities were as follows:



	June 30, 2016
	Weighted Average Effective Rate		Weighted Average Contractual Rate
Mortgage loans	6.1%		6.1%
Fixed rate unsecured loans	5.5%		4.8%
Unsecured credit facilities	1.5%	⁽¹⁾	1.4%

⁽¹⁾Weighted average effective rate for the unsecured credit facilities is calculated based on a fully drawn Line balance.

Significant financing activity since December 31, 2015 includes the following:


•	The Company has repaid three mortgages totaling $41.6 million that were scheduled to mature during 2016.


•	The Company issued new variable rate mortgage debt of $20.0 million, related to one of the mortgages that matured during 2016.


•	The Company borrowed on the Line to fund its acquisition of Market Common Clarendon during the three months ended June 30, 2016.

Financing - Subsequent Events

•

Subsequent to June 30, 2016, the Company amended its existing Term Loan, which increased the facility size by $100.0 million to $265.0 million, extended the maturity date to January 5, 2022 and reduced the applicable interest rate. The Term Loan now bears interest at LIBOR plus a ratings based margin of 0.95% per annum, subject to adjustment from time to time based on changes to the Company's corporate credit rating. At closing, the Company executed interest rate swaps for the full notional amount of the Term Loan, which fixed the interest rate at 2.0% through maturity. Proceeds from the expanded Term Loan facility were used to repay part of the Line balance.


•	Subsequent to June 30, 2016, the Company provided 30 days notice to redeem the entirety of its $300 million of 5.875% senior unsecured notes due June 15, 2017 funded from proceeds from an equity offering, as discussed in note 7. The redemption will include a $13.2 million make-whole premium, which will be paid and expensed in August 2016.

As of June 30, 2016, scheduled principal payments and maturities on notes payable were as follows:



(in thousands)	June 30, 2016
Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Mortgage Loan Maturities	Unsecured Maturities ⁽¹⁾			Total
2016	$	2,963	—	—			2,963
2017	5,778		117,298	300,000		⁽²⁾	423,076
2018	5,103		57,358	—			62,461
2019	4,393		106,000	310,000		⁽³⁾	420,393
2020	4,349		84,011	150,000			238,360
Beyond 5 Years	13,184		76,792	750,000			839,976
Unamortized debt premium/(discount) and issuance costs	—		6,198	(9,211	)		(3,013	)
Total	$	35,770	447,657	1,500,789			1,984,216

⁽¹⁾ Includes unsecured public debt and unsecured credit facilities.

⁽²⁾ The 2017 unsecured debt will be redeemed in August 2016 with proceeds from an equity offering.

⁽³⁾ In July 2016, the Term Loan was amended to mature in January 2022.

The Company was in compliance as of June 30, 2016 with the financial and other covenants under its unsecured public debt and unsecured credit facilities.