SPIRIT REALTY CAPITAL, INC. - 10-Q filing on 2015-05-08

Debt (Tables)

3 Months Ended

Mar. 31, 2015

The Company's debt is summarized below:



	Weighted Average Effective Interest Rates ⁽¹⁾		Weighted Average Stated Rates ⁽²⁾		Weighted Average Term ⁽³⁾	March 31, 2015			December 31, 2014
					(in Years)	(In Thousands)
Revolving Credit Facilities	NM		2.23	%	3.8	$	185,081		$	15,181
Master Trust Notes	5.44	%	5.04	%	7.9	1,705,910			1,710,380
CMBS - fixed-rate	5.45	%	5.86	%	3.0	1,671,951			1,836,181
CMBS - variable-rate⁽⁴⁾	3.50	%	3.30	%	2.5	110,598			110,685
Convertible Notes	4.84	%	3.28	%	5.0	747,500			747,500
Unsecured fixed rate promissory note	9.12	%	7.00	%	6.8	1,269			1,293
	5.33	%	4.89	%	5.3	4,422,309			4,421,220
Debt discount, net						(54,574		)	(51,586		)
Deferred financing costs, net ⁽⁵⁾						(48,499		)	(48,666		)
Total debt, net						$	4,319,236		$	4,320,968

⁽¹⁾ The effective interest rates include amortization of debt discount, amortization of deferred financing costs and non-utilization fees, where applicable, calculated for the three months ended March 31, 2015 and based on the average principal balance outstanding during the period. The average outstanding principal balance of the Revolving Credit Facilities was not significant during the three months ended March 31, 2015, resulting in an effective interest rate that was not meaningful.

⁽²⁾ Represents the weighted average stated interest rate based on the outstanding principal balance as of March 31, 2015.

⁽³⁾Represents the weighted average time to maturity based on the outstanding principal balance as of March 31, 2015.

⁽⁴⁾ Variable-rate notes are predominantly hedged with interest rate swaps (see Note 5).

⁽⁵⁾ The Company early adopted ASU 2015-03 requiring deferred financing costs to be presented as a direct deduction from the carrying amount of the related indebtedness.

Schedule of Debt Maturities

As of March 31, 2015, scheduled debt maturities of the Company’s Revolving Credit Facilities, mortgages and notes payable and Convertible Notes, including balloon payments, are as follows (in thousands):



	Scheduled Principal		Balloon Payment		Total
Remainder of 2015 ⁽¹⁾	$	22,363	$	230,032	$	252,395
2016	29,090		284,930		314,020
2017	28,535		816,108		844,643
2018	42,560		248,851		291,411
2019	44,520		622,000		666,520
Thereafter	289,321		1,763,999		2,053,320
Total	$	456,389	$	3,965,920	$	4,422,309

⁽¹⁾ The balloon payment balance in 2015 includes $77.4 million for the acceleration of principal payable following an event of default under four separate non-recourse CMBS loans.

Summary of Components of Interest Expense Related to Borrowings

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



	Three Months Ended March 31,
	2015		2014
Interest expense – Revolving Credit Facilities ⁽¹⁾	$	803	$	720
Interest expense – mortgages and notes payable	48,408		53,596
Interest expense – Convertible Notes	6,127		—
Interest expense – other	—		6
Non-cash interest expense:
Amortization of deferred financing costs	2,072		973
Amortization of net losses related to interest rate swaps	28		33
Amortization of debt (premium)/discount	476		(929		)
Total interest expense	$	57,914	$	54,399

Master Trust Notes

Debt Instrument [Line Items]

Summary of Debt

The Master Trust Notes are summarized below:



	Effective Interest Rates ⁽¹⁾		Stated Rates ⁽²⁾		Remaining Term	March 31, 2015			December 31, 2014
					(in Years)	(in Thousands)
Series 2014-1 Class A1	6.0	%	5.1	%	5.2	$	72,933		$	75,489
Series 2014-1 Class A2	6.0	%	5.4	%	5.3	253,300			253,300
Series 2014-2	6.1	%	5.8	%	6.0	232,086			232,867
Series 2014-3	6.0	%	5.7	%	7.0	312,600			312,705
Series 2014-4 Class A1	3.9	%	3.5	%	4.8	150,000			150,000
Series 2014-4 Class A2	4.8	%	4.6	%	14.8	360,000			360,000
Total Master Trust 2014 notes	5.5	%	5.1	%	8.2	1,380,919			1,384,361
Series 2013-1 Class A	4.6	%	3.9	%	3.7	125,000			125,000
Series 2013-2 Class A	5.6	%	5.3	%	8.7	199,991			201,019
Total Master Trust 2013 notes	5.2	%	4.7	%	6.8	324,991			326,019
						1,705,910			1,710,380
Debt discount, net						(25,916		)	(26,903		)
Deferred financing costs, net						(21,808		)	(22,113		)
Total Master Trust Notes, net						$	1,658,186		$	1,661,364

⁽¹⁾ The effective interest rates include amortization of debt discount and amortization of deferred financing costs calculated for the three months ended March 31, 2015 based on the average principal balance outstanding during the period.

⁽²⁾ Represents the individual series stated interest rate as of March 31, 2015 and the weighted average stated rate of the total Master Trust Notes, based on the collective series outstanding principal balances as of March 31, 2015.