Annual report pursuant to Section 13 and 15(d)

Unsecured Lines Of Credit Payable

v2.4.0.8
Unsecured Lines Of Credit Payable
12 Months Ended
Dec. 31, 2013
Unsecured Debt [Abstract]  
Unsecured Lines Of Credit Payable
As of December 31, 2013, we maintained a $100.0 million unsecured line of credit maturing in June 2015 (“Credit Facility No. 1”) and a $400.0 million unsecured line of credit maturing in July 2016 (“Credit Facility No. 2”). Credit Facility No. 1 and No. 2 have accordion features that allow us to increase the facilities to $200.0 million and $600.0 million, respectively, subject to additional lender commitments. The amounts of these lines of credit unused and available at December 31, 2013 were as follows (in thousands):
 
Credit Facility No. 1
 
Credit Facility No. 2
Committed capacity
$
100,000

 
$
400,000

Borrowings outstanding

 

Letters of credit issued

 

Unused and available
$
100,000

 
$
400,000


We executed borrowings and repayments on the unsecured lines of credit during 2013 as follows (in thousands):
 
Credit Facility No. 1
 
Credit Facility No. 2
Balance at December 31, 2012
$

 
$

Borrowings
100,000

 
60,000

Repayments
(100,000
)
 
(60,000
)
Balance at December 31, 2013
$

 
$



We made borrowings to pay off the West Gude mortgage note and our 5.125% unsecured notes, fund the acquisition of The Paramount and for general corporate purposes. We made repayments during the year ended December 31, 2013 using proceeds from the sale of The Atrium Building, the sale of the Medical Office Portfolio transactions I & II, and cash from operations.
Borrowings under Credit Facility No. 1 and No. 2 bear interest at LIBOR plus a spread based on the credit rating on our publicly issued debt. The interest rate spread is 120 basis points for each facility.
All outstanding advances for Credit Facility No. 1 and No. 2 are due and payable upon maturity in June 2015 and July 2016, respectively. Credit Facility No. 1 and 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 three years ended December 31, 2013, we recognized interest expense (excluding facility fees) as follows (in thousands):
 
Year Ended December 31,
 
2013
 
2012
 
2011
Credit Facility No. 1
$
281

 
$
470

 
$
355

Credit Facility No. 2
586

 
783

 
2,735



In addition, we pay a facility fee based on the credit rating of our publicly issued debt which as of December 31, 2013 equals 0.25%  per annum of the committed capacity of each facility, without regard to usage. Rates and fees may be adjusted up or down based on changes in our senior unsecured credit ratings. For the three years ended December 31, 2013, we incurred facility fees as follows (in thousands):
 
Year Ended December 31,
 
2013
 
2012
 
2011
Credit Facility No. 1
$
253

 
$
175

 
$
114

Credit Facility No. 2
1,014

 
887

 
658


Credit Facility No. 1 and No. 2 contain certain financial and non-financial covenants, all of which we have met as of December 31, 2013 and 2012. 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 for the three years ended December 31, 2013 as follows (in thousands, except percentage amounts):
 
Year Ended December 31,
 
2013
 
2012
 
2011
Total revolving credit facilities at December 31
$
500,000

 
$
500,000

 
$
475,000

Borrowings outstanding at December 31

 

 
99,000

Weighted average daily borrowings during the year
61,548

 
108,589

 
160,090

Maximum daily borrowings during the year
135,000

 
242,000

 
281,000

Weighted average interest rate during the year
1.41
%
 
1.15
%
 
1.90
%
Weighted average interest rate on borrowings outstanding at December 31
N/A

 
N/A

 
0.90
%