Tanger Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Debt of the Operating Partnership

Debt of the Operating Partnership

9 Months Ended

Sep. 30, 2019

Tanger Properties Limited Partnership [Member]

The debt of the Operating Partnership consisted of the following (in thousands):



						As of				As of
						September 30, 2019				December 31, 2018
	Stated Interest Rate(s)				Maturity Date	Principal		Book Value⁽¹⁾		Principal		Book Value⁽¹⁾
Senior, unsecured notes:
Senior notes	3.875	%			December 2023	$	250,000	$	247,145	$	250,000	$	246,664
Senior notes	3.750	%			December 2024	250,000		248,035		250,000		247,765
Senior notes	3.125	%			September 2026	350,000		346,079		350,000		345,669
Senior notes	3.875	%			July 2027	300,000		296,856		300,000		296,565

Mortgages payable:
Atlantic City ⁽²⁾⁽³⁾	5.14	%	-	7.65%	November 2021- December 2026	31,769		33,491		34,279		36,298
Southaven	LIBOR		+	1.80%	April 2021	51,400		51,247		51,400		51,173
Unsecured term loan	LIBOR		+	0.90%	April 2024	350,000		347,253		350,000		346,799
Unsecured lines of credit	LIBOR		+	0.875%	October 2021	4,100		1,817		145,100		141,985
						$	1,587,269	$	1,571,923	$	1,730,779	$	1,712,918


(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%.


(3)	Principal and interest due monthly with remaining principal due at maturity.

Certain of our properties, which had a net book value of approximately $174.5 million at September 30, 2019, serve as collateral for mortgages payable. We maintain unsecured lines of credit that provide for borrowings of up to $600.0 million. The unsecured lines of credit include a $20.0 million liquidity line and a $580.0 million syndicated line. The syndicated line may be increased up to $1.2 billion through an accordion feature in certain circumstances. As of September 30, 2019, letters of credit totaling approximately $170,000 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, 2019, the maximum amount of unconsolidated joint venture debt guaranteed by the Company was $19.4 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, 2019, we believe we were in compliance with all of our debt covenants.

Debt Maturities

Maturities of the existing long-term debt as of September 30, 2019 for the next five years and thereafter are as follows (in thousands):



Calendar Year	Amount
For the remainder of 2019	$	860
2020	3,566
2021	61,293
2022	4,436
2023	254,768
Thereafter	1,262,346
Subtotal	1,587,269
Net discount and debt origination costs	(15,346		)
Total	$	1,571,923