Quarterly report pursuant to Section 13 or 15(d)

Debt of the Operating Partnership

v3.8.0.1
Debt of the Operating Partnership
9 Months Ended
Sep. 30, 2017
Tanger Properties Limited Partnership [Member]  
Debt of the Operating Partnership
Debt of the Operating Partnership

The debt of the Operating Partnership consisted of the following (in thousands):
 
 
 
 
 
 
As of
 
As of
 
 
 
 
 
 
September 30, 2017
 
December 31, 2016
 
 
Stated Interest Rate(s)
 
Maturity Date
 
Principal
 
Book Value(1)
 
Principal
 
Book Value(1)
Senior, unsecured notes:
 
 
 
 

 
 
 
 
 
 
Senior notes
 
6.125
%
 
June 2020
 
$

 
$

 
$
300,000

 
$
298,226

Senior notes
 
3.875
%
 
December 2023
 
250,000

 
245,882

 
250,000

 
245,425

Senior notes
 
3.750
%
 
December 2024
 
250,000

 
247,321

 
250,000

 
247,058

Senior notes
 
3.125
%
 
September 2026
 
350,000

 
344,993

 
350,000

 
344,600

Senior notes
 
3.875
%
 
July 2027
 
300,000

 
295,985

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgages payable:
 
 
 
 
 
 
 
 
 
 
 
 
Atlantic City (2)
 
5.14%-7.65%

 
November 2021- December 2026
 
38,230

 
40,747

 
40,471

 
43,286

     Foxwoods
 
LIBOR + 1.55%

 
December 2017
 
70,250

 
70,174

 
70,250

 
69,902

     Southaven
 
LIBOR + 1.75%

 
April 2018
 
60,000

 
59,855

 
59,277

 
58,957

Unsecured term loan
 
LIBOR + 0.95%

 
April 2021
 
325,000

 
323,011

 
325,000

 
322,410

Unsecured lines of credit
 
LIBOR + 0.90%

 
October 2019
 
148,200

 
146,013

 
61,000

 
58,002

 
 
 
 
 
 
$
1,791,680

 
$
1,773,981

 
$
1,705,998

 
$
1,687,866

(1)
Including premiums and net of debt discount and debt origination costs.
(2)
The effective interest rate assigned during the purchase price allocation to the Atlantic City mortgages assumed during the acquisition in 2011 was 5.05%.

Certain of our properties, which had a net book value of approximately $314.5 million at September 30, 2017, serve as collateral for mortgages payable. We maintain unsecured lines of credit that provide for borrowings of up to $520.0 million. The unsecured lines of credit include a $20.0 million liquidity line and a $500.0 million syndicated line. The syndicated line may be increased up to $1.0 billion through an accordion feature in certain circumstances. As of September 30, 2017, letters of credit totaling approximately $5.5 million were issued under the lines of credit.

We provide guarantees to lenders for our joint ventures which include standard non-recourse carve out indemnifications for losses arising from items such as but not limited to fraud, physical waste, payment of taxes, environmental indemnities, misapplication of insurance proceeds or security deposits and failure to maintain required insurance. For construction and term loans, we may include a guaranty of completion as well as a principal guaranty ranging from 5% to 100% of principal.  The principal guarantees include terms for release or reduction based upon satisfactory completion of construction and performance targets including occupancy thresholds and minimum debt service coverage tests. As of September 30, 2017, the maximum amount of unconsolidated joint venture debt guaranteed by the Company was $32.8 million.

The unsecured lines of credit and senior unsecured notes include covenants that require the maintenance of certain ratios, including debt service coverage and leverage, and limit the payment of dividends such that dividends and distributions will not exceed funds from operations, as defined in the agreements, for the prior fiscal year on an annual basis or 95% of funds from operations on a cumulative basis. As of September 30, 2017, we were in compliance with all of our debt covenants.

$300.0 Million Unsecured Senior Notes due 2027

In July 2017, we completed an underwritten public offering of $300.0 million of 3.875% senior notes due 2027 (the "2027 Notes"). The 2027 Notes priced at 99.579% of the principal amount to yield 3.926% to maturity. The 2027 Notes pay interest semi-annually at a rate of 3.875% per annum and mature on July 15, 2027. The estimated net proceeds from the offering, after deducting the underwriting discount and offering expenses, were approximately $295.9 million. In August 2017, we used the net proceeds from the sale of the 2027 Notes, together with borrowings under our unsecured lines of credit, to redeem all of our 6.125% senior notes due 2020 (the "2020 Notes") (approximately $300.0 million in aggregate principal amount outstanding). The 2020 Notes were redeemed at par plus a “make-whole” premium of approximately $34.1 million. In addition, we wrote off approximately $1.5 million of unamortized debt discount and debt origination costs related to the 2020 Notes.

Debt Maturities

Maturities of the existing long-term debt as of September 30, 2017 for the next five years and thereafter are as follows (in thousands):
Calendar Year
 
Amount

2017
 
$
71,017

2018
 
63,183

2019
 
151,569

2020
 
3,566

2021
 
330,793

Thereafter
 
1,171,552

Subtotal
 
1,791,680

Net discount and debt origination costs
 
(17,699
)
Total
 
$
1,773,981