Quarterly report pursuant to Section 13 or 15(d)

Debt Guaranteed by the Company

v3.22.2.2
Debt Guaranteed by the Company
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Debt Guaranteed by the Company Debt Guaranteed by the Company
All of the Company’s debt is held by the Operating Partnership and its consolidated subsidiaries.

The Company guarantees the Operating Partnership’s obligations with respect to its unsecured lines of credit which have a total borrowing capacity of $520.0 million as of March 31, 2022. The Company also guarantees the Operating Partnership’s unsecured term loan.

The Operating Partnership had the following principal amounts outstanding on the debt guaranteed by the Company (in thousands):
As of
March 31, 2022 December 31, 2021
Unsecured lines of credit $ —  $ — 
Unsecured term loan $ 300,000  $ 300,000 
Debt of the Operating Partnership
The debt of the Operating Partnership consisted of the following (in thousands):
As of As of
March 31, 2022 December 31, 2021
Stated Interest Rate(s) Maturity Date Principal
Book Value(1)
Principal
Book Value(1)
Senior, unsecured notes:  
Senior notes 3.125  % September 2026 $ 350,000  $ 347,470  $ 350,000  $ 347,329 
Senior notes 3.875  % July 2027 300,000  297,842  300,000  297,742 
Senior notes 2.750  % September 2031 400,000  391,323  400,000  391,110 
Mortgages payable:
Atlantic City (2) (3)
6.44  % - 7.65% December 2024- December 2026 20,468  21,215  21,550  22,387 
     Southaven LIBOR + 1.80% April 2023 40,144  40,097  40,144  40,087 
Unsecured term loan LIBOR + 1.25% April 2024 300,000  298,590  300,000  298,421 
Unsecured lines of credit LIBOR + 1.20% July 2025 —  —  —  — 
  $ 1,410,612  $ 1,396,537  $ 1,411,694  $ 1,397,076 
(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 $149.0 million at March 31, 2022, serve as collateral for mortgages payable. As of March 31, 2022, we maintained unsecured lines of credit that provided for borrowings of up to $520.0 million. The unsecured lines of credit as of March 31, 2022 included a $20.0 million liquidity line and a $500.0 million syndicated line. The syndicated line may be increased up to $1.2 billion through an accordion feature in certain circumstances.

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 0% to 17% 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 March 31, 2022, the maximum amount of unconsolidated joint venture debt guaranteed by the Company was $21.9 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 March 31, 2022, we believe we were in compliance with all of our debt covenants.
Debt Maturities

Maturities of the existing long-term debt as of March 31, 2022 for the next five years and thereafter are as follows (in thousands):
Calendar Year Amount
For the remainder of 2022 $ 3,360 
2023 44,916 
2024 305,130 
2025 1,501 
2026 355,705 
Thereafter 700,000 
Subtotal 1,410,612 
Net discount and debt origination costs (14,075)
Total $ 1,396,537 
We have considered our short-term (one year or less from the date of filing these financial statements) liquidity needs and the adequacy of our estimated cash flows from operating activities and other financing sources to meet these needs. These other sources include but are not limited to: existing cash, ongoing relationships with certain financial institutions, our ability to sell debt or issue equity subject to market conditions and proceeds from the potential sale of non-core assets. We believe that we have access to the necessary financing to fund our short-term liquidity needs.