SPIRIT REALTY CAPITAL, INC. - 10-Q filing on 2018-05-03

Debt (Tables)

3 Months Ended

Mar. 31, 2018

The Company's debt is summarized below:



	Weighted Average Effective Interest Rates ⁽¹⁾		Weighted Average Stated Rates ⁽²⁾		Weighted Average Maturity ⁽³⁾	March 31, 2018			December 31, 2017
					(in Years)	(In Thousands)
Revolving Credit Facility	5.88	%	3.06	%	1.0	$	154,500		$	112,000
Term Loan	—	%	—	%	0.6	—			—
Master Trust Notes	5.63	%	4.95	%	5.0	2,243,210			2,248,504
CMBS	5.61	%	5.56	%	6.0	382,718			332,647
Convertible Notes	5.31	%	3.28	%	2.0	747,500			747,500
Senior Unsecured Notes	4.70	%	4.45	%	8.5	300,000			300,000
Total debt	5.52	%	4.57	%	4.6	3,827,928			3,740,651
Debt discount, net						(48,768		)	(61,399		)
Deferred financing costs, net ⁽⁴⁾						(38,140		)	(39,572		)
Total debt, net						$	3,741,020		$	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 three months ended March 31, 2018 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 March 31, 2018.

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

⁽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 March 31, 2018, 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 2018 ⁽¹⁾	$	32,562	$	155,226	$	187,788
2019 ⁽²⁾	45,413		557,000		602,413
2020	50,240		364,997		415,237
2021	33,665		565,176		598,841
2022	33,849		981,461		1,015,310
Thereafter	195,915		812,424		1,008,339
Total	$	391,644	$	3,436,284	$	3,827,928

⁽¹⁾ The balloon payment balance in 2018 includes $31.4 million, including $10.3 million of capitalized interest, for the acceleration of principal payable following an event of default under three non-recourse CMBS loans with a stated maturity in 2018.

⁽²⁾ 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 March 31,
	2018		2017
Interest expense – Revolving Credit Facility ⁽¹⁾	$	1,352	$	1,232
Interest expense – Term Loan	—		2,246
Interest expense – Senior Unsecured Notes	3,338		3,338
Interest expense – mortgages and notes payable	32,707		28,218
Interest expense – Convertible Notes ⁽²⁾	6,127		6,127
Non-cash interest expense:
Amortization of deferred financing costs	2,979		2,401
Amortization of debt discount, net	4,562		3,061
Total interest expense	$	51,065	$	46,623

⁽¹⁾ Includes facility fees of approximately $0.5 million and $0.6 million for the three month periods ended March 31, 2018 and 2017, respectively.

⁽²⁾ Included in interest expense on the Operating Partnership's consolidated statements of operations and comprehensive income 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	March 31, 2018			December 31, 2017
			(in Years)	(in Thousands)
Series 2014-1 Class A2	5.4	%	2.3	249,203			252,437
Series 2014-2	5.8	%	3.0	232,768			222,683
Series 2014-3	5.7	%	4.0	310,439			311,336
Series 2014-4 Class A1	3.5	%	1.8	149,629			150,000
Series 2014-4 Class A2	4.6	%	11.8	353,746			358,664
Series 2017-1 Class A ⁽²⁾	4.4	%	4.7	513,569			515,280
Series 2017-1 Class B ⁽²⁾	6.4	%	4.7	125,400			125,400
Total Master Trust 2014 notes	5.0	%	5.1	1,934,754			1,935,800
Series 2013-1 Class A	3.9	%	0.7	123,781			125,000
Series 2013-2 Class A	5.3	%	5.7	184,675			187,704
Total Master Trust 2013 notes	4.7	%	3.7	308,456			312,704
Total Master Trust notes				2,243,210			2,248,504
Debt discount, net				(26,125		)	(36,188		)
Deferred financing costs, net				(22,825		)	(24,010		)
Total Master Trust Notes, net				$	2,194,260		$	2,188,306

⁽¹⁾ Represents the individual series stated interest rate as of March 31, 2018 and the weighted average stated rate of the total Master Trust Notes, based on the collective series outstanding principal balances as of March 31, 2018.

⁽²⁾The Operating Partnership acquired $27.1 million in aggregate principal amount of Class A Notes and $6.6 million in aggregate principal amount of Class B Notes to satisfy its regulatory risk retention obligations.