SPIRIT REALTY CAPITAL, INC. - 10-K filing on 2019-02-21

Debt (Tables)

12 Months Ended

Dec. 31, 2018

The Company's debt is summarized below:



	2018 Weighted Average Effective Interest Rates⁽¹⁾		2018 Weighted Average Stated Rates ⁽²⁾		2018 Weighted Average Remaining Term ⁽³⁾	December 31, 2018			December 31, 2017
						(In Thousands)
2015 Credit Facility	5.19	%	3.34	%	0.2	$	146,300		$	112,000
2015 Term Loan	3.83	%	3.63	%	0.8	420,000			—
Master Trust Notes	5.60	%	5.01	%	5.0	167,854			2,248,504
CMBS	5.77	%	5.53	%	4.5	274,758			332,647
Related party notes payable	1.00	%	1.00	%	9.2	27,890			—
Convertible Notes	5.31	%	3.28	%	1.3	747,500			747,500
Senior Unsecured Notes	4.64	%	4.45	%	7.7	300,000			300,000
Total debt	5.26	%	4.19	%	2.9	2,084,302			3,740,651
Debt discount, net						(14,733		)	(61,399		)
Deferred financing costs, net ⁽⁴⁾						(14,932		)	(39,572		)
Total debt, net						$	2,054,637		$	3,639,680

⁽¹⁾ The effective interest rates include amortization of debt discount/premium, amortization of deferred financing costs, facility fees, and non-utilization fees, where applicable, calculated for the year ended December 31, 2018 and based on the average principal balance outstanding.

⁽²⁾ Represents the weighted average stated interest rate based on the outstanding principal balance as of December 31, 2018.

⁽³⁾ Represents the weighted average maturity based on the outstanding principal balance as of December 31, 2018.

⁽⁴⁾The Company records deferred financing costs for the 2015 Credit Facility in deferred costs and other assets, net on its consolidated balance sheets.

Schedule of Debt Maturities of Company's Revolving Credit Facilities, Mortgages and Notes Payable, Including Balloon Payments

As of December 31, 2018, scheduled debt maturities of the Company’s 2015 Credit Facility, 2015 Term Loan, Senior Unsecured Notes, mortgages and notes payable, and Convertible Notes, including balloon payments, are as follows (in thousands):



	Scheduled Principal		Balloon Payment		Total
2019 ⁽¹⁾	$	11,672	$	978,914	$	990,586
2020	12,164		—		12,164
2021	12,737		345,000		357,737
2022	13,315		42,400		55,715
2023	11,609		339,526		351,135
Thereafter	16,895		300,070		316,965
Total	$	78,392	$	2,005,910	$	2,084,302

⁽¹⁾ The balloon payment balance in 2019 includes the 2015 Credit Facility and 2015 Term Loan. On January 11, 2019, Spirit entered into a new 2019 Facilities Agreement which replaces the existing 2015 Credit Facility and 2015 Term Loan in their entirety, see Note 16 for further discussion. The balloon payment balance in 2019 also includes $10.1 million, of which $3.4 million is capitalized interest, for the acceleration of principal payable following an event of default under one non-recourse CMBS loan.

Summary of the Components of Interest Expense Related to the Company's Borrowings

The following table is a summary of the components of interest expense related to the Company's borrowings (in thousands):



	Years Ended December 31,
	2018		2017		2016
Interest expense – 2015 Credit Facility ⁽¹⁾	$	8,220	$	7,957	$	3,314
Interest expense – 2015 Term Loan	6,594		9,793		5,218
Interest expense – mortgages and notes payable	68,530		111,049		143,233
Interest expense – Convertible Notes ⁽²⁾	24,509		24,509		24,509
Interest expense – Unsecured Senior Notes	13,350		13,351		4,932
Non-cash interest expense:
Amortization of deferred financing costs	9,306		9,896		9,070
Amortization of net losses related to interest rate swaps	—		—		93
Amortization of debt discount/(premium), net	13,560		13,572		6,217
Total interest expense	$	144,069	$	190,127	$	196,586

⁽¹⁾Includes facility fees of approximately $2.1 million, $2.1 million and $2.0 million for the years ended December 31, 2018, 2017 and 2016, respectively.

⁽²⁾ Included in interest expense on the Operating Partnership's consolidated statements of operations are amounts paid to the Corporation by the Operating Partnership related to the notes payable to Spirit Realty Capital, Inc.

Master Trust Notes

Debt Instrument [Line Items]

Summary of Debt

The Master Trust Notes are summarized below:



	Stated Rate		Remaining Term	December 31, 2018			December 31, 2017
			(in Years)	(in Thousands)
Series 2014-1 Class A1							$	—
Series 2014-1 Class A2							252,437
Series 2014-2							222,683
Series 2014-3							311,336
Series 2014-4 Class A1							150,000
Series 2014-4 Class A2							358,664
Series 2017-1 Class A							515,280
Series 2017-1 Class B							125,400
Total Master Trust 2014 notes							1,935,800
Series 2013-1 Class A				$	—		125,000
Series 2013-2 Class A	5.60	%	5.0	167,854			187,704
Total Master Trust 2013 notes	5.60	%	5.0	167,854			312,704
Total Master Trust Notes				167,854			2,248,504
Debt discount, net				—			(36,188		)
Deferred financing costs, net				(4,189		)	(24,010		)
Total Master Trust Notes, net				$	163,665		$	2,188,306