Quarterly report pursuant to Section 13 or 15(d)

Debt of the Operating Partnership

v3.19.3
Debt of the Operating Partnership
9 Months Ended
Sep. 30, 2019
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, 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