SPIRIT REALTY CAPITAL, INC. - 10-Q filing on 2017-11-02

Debt (Tables)

9 Months Ended

Sep. 30, 2017

The Company's debt is summarized below:



	Weighted Average Effective Interest Rates ⁽¹⁾		Weighted Average Stated Rates ⁽²⁾		Weighted Average Maturity ⁽³⁾	September 30, 2017			December 31, 2016
					(in Years)	(In Thousands)
Revolving Credit Facility	3.43	%	2.49	%	1.5	$	386,000		$	86,000
Term Loan	2.83	%	2.59	%	1.1	420,000			420,000
Senior Unsecured Notes	4.59	%	4.45	%	9.0	300,000			300,000
Master Trust Notes	5.58	%	5.03	%	5.5	1,657,402			1,672,706
CMBS fixed-rate	5.85	%	5.89	%	3.9	426,583			528,427
Convertible Notes	5.32	%	3.28	%	2.5	747,500			747,500
Total debt	4.97	%	4.24	%	4.2	3,937,485			3,754,633
Debt discount, net						(43,327		)	(52,894		)
Deferred financing costs, net ⁽⁴⁾						(31,013		)	(37,111		)
Total debt, net						$	3,863,145		$	3,664,628

⁽¹⁾ The effective interest rates include amortization of debt discount/premium, amortization of deferred financing costs and credit facility fees, where applicable, calculated for the three months ended September 30, 2017 and based on the average principal balance outstanding during the period.

⁽²⁾ Represents the weighted average stated interest rate based on the outstanding principal balance as of September 30, 2017.

⁽³⁾Represents the weighted average maturity based on the outstanding principal balance as of September 30, 2017.

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

Schedule of Debt Maturities

As of September 30, 2017, scheduled debt maturities of the Company’s Revolving Credit Facility, Term Loan, Senior Unsecured Notes, Master Trust Notes, CMBS and Convertible Notes, including balloon payments, are as follows (in thousands):



	Scheduled Principal		Balloon Payment		Total
Remainder of 2017 ⁽¹⁾	$	7,538	$	122,634	$	130,172
2018 ⁽²⁾	41,954		569,800		611,754
2019 ⁽³⁾	44,325		798,500		842,825
2020	39,096		413,206		452,302
2021	30,658		554,753		585,411
Thereafter	219,000		1,096,021		1,315,021
Total	$	382,571	$	3,554,914	$	3,937,485

⁽¹⁾ The balloon payment balance in 2017 includes $62.9 million, including $11.8 million of capitalized interest, for the acceleration of principal payable following an event of default under six non-recourse CMBS loans with a stated maturity in 2017.

⁽²⁾ 2018 includes $420 million unsecured Term Loan that is extendible at borrower's option pursuant to two one-year extension options.

⁽³⁾ 2019 includes the Revolving Credit Facility which is extendible for one year at the borrower's option.

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 September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Interest expense – Revolving Credit Facility ⁽¹⁾	$	3,075	$	1,155	$	5,632	$	2,507
Interest expense – Term Loan	2,768		1,307		7,525		3,376
Interest expense – Senior Unsecured Notes	3,337		1,595		10,013		1,595
Interest expense – mortgages and notes payable	27,563		33,291		83,640		113,837
Interest expense – Convertible Notes ⁽²⁾	6,127		6,127		18,382		18,382
Non-cash interest expense:
Amortization of deferred financing costs	2,451		2,303		7,274		6,706
Amortization of net losses related to interest rate swaps	—		28		—		85
Amortization of debt discount, net	3,359		1,847		9,663		3,354
Total interest expense	$	48,680	$	47,653	$	142,129	$	149,842

⁽¹⁾ Includes facility fees of approximately $0.5 million for both of the three month periods ended September 30, 2017 and 2016, and approximately $1.6 million and $1.5 million for the nine month periods ended September 30, 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 Rates ⁽¹⁾		Maturity	September 30, 2017			December 31, 2016
			(in Years)	(in Thousands)
Series 2014-1 Class A1	5.1	%	2.7	$	45,141		$	53,919
Series 2014-1 Class A2	5.4	%	2.8	253,300			253,300
Series 2014-2	5.8	%	3.5	223,604			226,283
Series 2014-3	5.7	%	4.5	311,459			311,820
Series 2014-4 Class A1	3.5	%	2.3	150,000			150,000
Series 2014-4 Class A2	4.6	%	12.3	360,000			360,000
Total Master Trust 2014 notes	5.1	%	5.8	1,343,504			1,355,322
Series 2013-1 Class A	3.9	%	1.2	125,000			125,000
Series 2013-2 Class A	5.3	%	6.2	188,898			192,384
Total Master Trust 2013 notes	4.7	%	4.2	313,898			317,384
Total Master Trust notes				1,657,402			1,672,706
Debt discount, net				(15,613		)	(18,787		)
Deferred financing costs, net				(14,050		)	(16,376		)
Total Master Trust Notes, net				$	1,627,739		$	1,637,543

⁽¹⁾ Represents the individual series stated interest rate as of September 30, 2017 and the weighted average stated rate of the total Master Trust Notes, based on the collective series outstanding principal balances as of September 30, 2017.