Annual report pursuant to Section 13 and 15(d)

Notes Payable

v2.4.0.8
Notes Payable
12 Months Ended
Dec. 31, 2013
Notes Payable [Abstract]  
Notes Payable
Our unsecured notes outstanding as of December 31, 2013 were as follows (in thousands):
 
Coupon/Stated Rate
 
Effective Rate (1)
 
Principal Amount
 
Maturity Date (2)
10 Year Unsecured Notes
5.25
%
 
5.339
%
 
$
100,000

 
1/15/2014
10 Year Unsecured Notes
5.35
%
 
5.359
%
 
50,000

 
5/1/2015
10 Year Unsecured Notes
5.35
%
 
5.490
%
 
100,000

 
5/1/2015
10 Year Unsecured Notes
4.95
%
 
5.053
%
 
250,000

 
10/1/2020
10 Year Unsecured Notes
3.95
%
 
4.018
%
 
300,000

 
10/15/2022
30 Year Unsecured Notes
7.25
%
 
7.360
%
 
50,000

 
2/25/2028
Total principal
 
 
 
 
850,000

 
 
Net unamortized discount
 
 
 
 
(3,297
)
 
 
Total
 
 
 
 
$
846,703

 
 
(1) Yield on issuance date, including the effects of discounts on the notes.
(2) No principal amounts are due prior to maturity.
We extinguished the remaining $60.0 million of our 5.125% unsecured notes on their due date of March 15, 2013, using borrowings on our unsecured line of credit.
After December 31, 2013, we extinguished the remaining $100.0 million of our 5.25% unsecured notes on its maturity date.
The required principal payments excluding the effects of note discounts or premium for the remaining years subsequent to December 31, 2013 are as follows (in thousands):
2014
$
100,000

2015
150,000

2016

2017

2018

Thereafter
600,000

 
$
850,000


 
Interest on these notes is payable semi-annually. These notes contain certain financial and non-financial covenants, all of which we have met as of December 31, 2013. Included in these covenants is the requirement to maintain a minimum level of unencumbered assets, as well as limits on our total indebtedness, secured indebtedness and required debt service payments.
The covenants under our line of credit agreements require us to insure our properties against loss or damage in amounts customarily maintained by similar businesses or as they may be required by applicable law. The covenants for the notes require us to keep all of our insurable properties insured against loss or damage at least equal to their then full insurable value. We have an insurance policy which has no terrorism exclusion, except for non-certified nuclear, chemical and biological acts of terrorism. Our financial condition and results of operations are subject to the risks associated with acts of terrorism and the potential for uninsured losses as the result of any such acts. Effective November 26, 2002, under this existing coverage, any losses caused by certified acts of terrorism would be partially reimbursed by the United States under a formula established by federal law. Under this formula the United States pays 85% of covered terrorism losses exceeding the statutorily established deductible paid by the insurance provider, and insurers pay 10% until aggregate insured losses from all insurers reach $100 billion in a calendar year. If the aggregate amount of insured losses under this program exceeds $100 billion during the applicable period for all insured and insurers combined, then each insurance provider will not be liable for payment of any amount which exceeds the aggregate amount of $100 billion. On December 26, 2007, the Terrorism Risk Insurance Program Reauthorization Act of 2007 was signed into law and extends the program through December 31, 2014.