Annual report pursuant to Section 13 and 15(d)

Unsecured Lines Of Credit Payable

v2.4.1.9
Unsecured Lines Of Credit Payable
12 Months Ended
Dec. 31, 2014
Unsecured Debt [Abstract]  
Unsecured Lines Of Credit Payable
NOTE 5: UNSECURED LINES OF CREDIT PAYABLE
As of December 31, 2014, 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, 2014 were as follows (in thousands):
 
Credit Facility No. 1
 
Credit Facility No. 2
Committed capacity
$
100,000

 
$
400,000

Borrowings outstanding
(5,000
)
 
(45,000
)
Letters of credit issued

 

Unused and available
$
95,000

 
$
355,000


During January 2015, we provided a letter of credit under Credit Facility No. 2 for $15.5 million to the lender for John Marshall II relating to tenant improvements.
We executed borrowings and repayments on the unsecured lines of credit during 2014 as follows (in thousands):
 
Credit Facility No. 1
 
Credit Facility No. 2
Balance at December 31, 2013
$

 
$

Borrowings
10,000

 
45,000

Repayments
(5,000
)
 

Balance at December 31, 2014
$
5,000

 
$
45,000


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. In addition, we pay a facility fee based on the credit rating of our publicly issued debt which as of December 31, 2014 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, 2014, we recognized interest expense (excluding facility fees) and facility fees as follows (in thousands):
 
Year Ended December 31,
 
2014
 
2013
 
2012
Interest expense (excluding facility fees)
$
196

 
$
867

 
$
1,253

Facility fees
1,267

 
1,267

 
1,062


Credit Facility No. 1 and No. 2 contain certain financial and non-financial covenants, all of which we have met as of December 31, 2014 and 2013. 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, 2014 as follows (in thousands, except percentage amounts):
 
Year Ended December 31,
 
2014
 
2013
 
2012
Total revolving credit facilities at December 31
$
500,000

 
$
500,000

 
$
500,000

Borrowings outstanding at December 31
50,000

 

 

Weighted average daily borrowings during the year
12,849

 
61,548

 
108,589

Maximum daily borrowings during the year
55,000

 
135,000

 
242,000

Weighted average interest rate during the year
1.53
%
 
1.41
%
 
1.15
%
Weighted average interest rate on borrowings outstanding at December 31
1.37
%
 
N/A

 
N/A