Subsequent Events

9 Months Ended

Sep. 30, 2017

Subsequent Event [Line Items]

Subsequent Events [Text Block]

Subsequent Events

Credit Facility

In October 2017, the Company replaced its existing $800 million credit facility which was set to mature in March 2018 with a new $900 million unsecured credit facility. The new facility includes a revolving credit facility for aggregate borrowings up to $800 million (the "Revolving Credit Facility") and a delayed draw term loan facility aggregating up to $100 million. It matures in October 2021 and the Company has options to extend the maturity date for up to one additional year. Based upon the Company’s current credit ratings, borrowings under the Revolving Credit Facility bear interest at LIBOR plus 87.5 basis points and bear interest at LIBOR plus 95 basis points for delayed draw term loans. There is also a 15 basis point annual facility fee. The Revolving Credit Facility contains a competitive bid option, whereby participating lenders bid on the interest rate to be charged. This feature is available for up to 50% of the amount of the Revolving Credit Facility. The financial and other covenants under the new facility are similar to our previous credit facility. The Company expects to incur approximately $5.1 million of debt issuance costs associated with the new facility.

Agreement of Sale

On October 2, 2017 the Company entered into an agreement to sell 14 office properties totaling 641,000 square feet of leasable space for $75.4 million. The properties are in the Southeastern PA segment. The sale is currently anticipated to close in 2017, subject to the satisfaction of certain closing conditions.