Quarterly report pursuant to Section 13 or 15(d)

Unsecured Lines of Credit Payable

v3.7.0.1
Unsecured Lines of Credit Payable
3 Months Ended
Mar. 31, 2017
Unsecured Debt [Abstract]  
Unsecured Lines of Credit Payable
UNSECURED LINES OF CREDIT PAYABLE

We have a $600.0 million unsecured revolving credit agreement (“Revolving Credit Facility”) that matures in June 2019, unless extended pursuant to one or both of the two six months extension options. The Revolving Credit Facility has an accordion feature, which we utilized a portion of in September 2015, as described below, that allows us to increase the facility to $1.0 billion, subject to the extent the lenders agree to provide additional revolving loan commitments or term loans. In September 2015, we entered into a $150.0 million unsecured term loan (“2015 Term Loan”) by executing a portion of the accordion feature under the Revolving Credit Facility. The 2015 Term Loan has a 5.5 year term and currently has an interest rate of one month LIBOR plus 110 basis points, based on Washington REIT’s current unsecured debt ratings. We entered into two interest rate swaps to effectively fix the interest rate at 2.7% (see note 7).

The Revolving Credit Facility bears interest at a rate of either one month LIBOR plus a margin ranging from 0.875% to 1.55% or the base rate plus a margin ranging from 0.0% to 0.55% (in each case depending upon Washington REIT’s credit rating). The base rate is the highest of the administrative agent’s prime rate, the federal funds rate plus 0.50% and the LIBOR market index rate plus 1.0%. In addition, the Revolving Credit Facility requires the payment of a facility fee ranging from 0.125% to 0.30% (depending on Washington REIT’s credit rating) on the $600.0 million committed capacity, without regard to usage. As of March 31, 2017, the interest rate on the facility is one month LIBOR plus 1.00% and the facility fee is 0.20%.

The amount of the Revolving Credit Facility’s unsecured line of credit unused and available at March 31, 2017 is as follows (in thousands):
Committed capacity
$
600,000

Borrowings outstanding
(123,000
)
Unused and available
$
477,000



We executed borrowings and repayments on the Revolving Credit Facility during the 2017 Quarter as follows (in thousands):
 
Revolving Credit Facility
Balance at December 31, 2016
$
120,000

Borrowings
90,000

Repayments
(87,000
)
Balance at March 31, 2017
$
123,000