Annual report pursuant to Section 13 and 15(d)

Unsecured Lines Of Credit Payable

v2.4.0.6
Unsecured Lines Of Credit Payable
12 Months Ended
Dec. 31, 2011
Unsecured Debt [Abstract]  
Unsecured Lines Of Credit Payable
UNSECURED LINES OF CREDIT PAYABLE
As of December 31, 2011, we maintained a $75.0 million unsecured line of credit maturing in June 2012 (“Credit Facility No. 1”) and a $400.0 million unsecured line of credit maturing in July 2014 (“Credit Facility No. 2”). The amounts of these lines of credit unused and available at December 31, 2011 are as follows (in millions):
 
Credit Facility No. 1
 
Credit Facility No. 2
Committed capacity
$
75.0

 
$
400.0

Borrowings outstanding
(74.0
)
 
(25.0
)
Letters of credit issued
(0.8
)
 

Unused and available
$
0.2

 
$
375.0


We executed borrowings and repayments on the unsecured lines of credit during 2011 as follows (in millions):
 
Credit Facility No. 1
 
Credit Facility No. 2
Balance at December 31, 2010
$

 
$
100.0

Borrowings
92.0

 
169.0

Repayments
(18.0
)
 
(244.0
)
Balance at December 31, 2011
$
74.0

 
$
25.0


We made borrowings under Credit Facility No. 1 during 2011 to partially fund our acquisitions of 1140 Connecticut Avenue and 1227 25th Street, and for general corporate purposes. We made borrowings under Credit Facility No. 2 to repay unsecured notes, to partially fund the acquisitions of Olney Village Center, John Marshall II and Braddock Gateway and for general corporate purposes. We made repayments during 2011 using proceeds from the sales of the Industrial Portfolio and the sale of Dulles Station, Phase I.
Borrowings under Credit Facility No. 1 bear interest at our option of LIBOR plus a spread based on the credit rating on our publicly issued debt or the higher of SunTrust Bank’s prime rate and the Federal Funds Rate in effect plus 0.5%. Borrowings under Credit Facility No. 2 bear interest at our option of LIBOR plus a spread based on the credit rating of our publicly issued debt or the higher of Wells Fargo Bank’s prime rate and the Federal Funds Rate in effect plus 1.0%. The interest rate spreads are 42.5 basis points and 122.5 basis points for Credit Facilities No. 1 and 2, respectively.
All outstanding advances for Credit Facilities No. 1 and 2 are due and payable upon maturity in June 2012 and July 2014, respectively. Credit Facility No. 2 may be extended for one year at our option. Interest only payments are due and payable generally on a monthly basis. For the years ended December 31, 2011, 2010 and 2009, we recognized interest expense (excluding facility fees) as follows (in millions):
 
2011
 
2010
 
2009
Credit Facility No. 1
$
0.4

 
$
0.1

 
$

Credit Facility No.2
$
2.7

 
$
2.7

 
$
0.5


The average interest rate on borrowings for the years ended December 31, 2011, 2010 and 2009 was as follows:
 
2011
 
2010
 
2009
Credit Facility No. 1
0.65
%
 
0.71
%
 
0.70
%
Credit Facility No.2
2.54
%
 
2.65
%
 
1.81
%

In addition, we pay a facility fee based on the credit rating of our publicly issued debt which currently equals 0.15% and 0.225% per annum of the committed capacity of Credit Facility No. 1 and Credit Facility No. 2, respectively, without regard to usage. Rates and fees may be adjusted up or down based on changes in our senior unsecured credit ratings. For the years ended December 31, 2011, 2010 and 2009, we incurred facility fees as follows (in millions):
 
2011
 
2010
 
2009
Credit Facility No. 1
$
0.1

 
$
0.1

 
$
0.1

Credit Facility No.2
$
0.7

 
$
0.4

 
$
0.4


Credit Facilities No. 1 and No. 2 contain certain financial and non-financial covenants, all of which we have met as of December 31, 2011. Included in these covenants is the requirement to maintain a minimum level of net worth, as well as limits on our total liabilities, secured indebtedness and required debt service payments.
Information related to revolving credit facilities is as follows (in thousands):
 
2011
 
2010
 
2009
Total revolving credit facilities at December 31
$
475,000

 
$
337,000

 
$
337,000

Borrowings outstanding at December 31
$
99,000

 
$
100,000

 
$
128,000

Weighted average daily borrowings during the year
$
160,090

 
$
112,573

 
$
33,656

Maximum daily borrowings during the year
$
281,000

 
$
141,000

 
$
128,000

Weighted average interest rate during the year
1.90
%
 
2.43
%
 
1.62
%
Weighted average interest rate at December 31
0.90
%
 
2.53
%
 
2.79
%