Washington Real Estate Investment Trust Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Unsecured Lines Of Credit Payable

Unsecured Lines Of Credit Payable

12 Months Ended

Dec. 31, 2014

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

- Definition

Tabular disclosure of short-term or long-term contractual arrangements with lenders, including letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line.

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