SPIRIT REALTY CAPITAL, INC. - 10-Q filing on 2018-08-09

Debt (Tables)

6 Months Ended

Jun. 30, 2018

The Company's debt is summarized below:



	Weighted Average Effective Interest Rates ⁽¹⁾		Weighted Average Stated Rates ⁽²⁾		Weighted Average Maturity ⁽³⁾	June 30, 2018			December 31, 2017
					(in Years)	(In Thousands)
Revolving Credit Facility	4.49	%	3.32	%	0.8	$	346,500		$	112,000
Term Loan	—	%	—	%	0.3	—			—
Master Trust Notes	5.50	%	5.27	%	5.5	170,154			2,248,504
CMBS	5.73	%	5.51	%	5.0	276,124			332,647
Related Party Notes Payable	0.99	%	1.00	%	9.4	29,368			—
Convertible Notes	5.32	%	3.28	%	1.8	747,500			747,500
Senior Unsecured Notes	4.65	%	4.45	%	8.2	300,000			300,000
Total debt	5.30	%	3.95	%	3.6	1,869,646			3,740,651
Debt discount, net						(20,042		)	(61,399		)
Deferred financing costs, net ⁽⁴⁾						(17,472		)	(39,572		)
Total debt, net						$	1,832,132		$	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 June 30, 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 June 30, 2018.

⁽³⁾Represents the weighted average maturity based on the outstanding principal balance as of June 30, 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 June 30, 2018, scheduled debt maturities of the Company’s Revolving Credit Facility, Term Loan, Senior Unsecured Notes, Master Trust 2013, CMBS and Convertible Notes, including balloon payments, are as follows (in thousands):



	Scheduled Principal		Balloon Payment		Total
Remainder of 2018 ⁽¹⁾	$	5,635	$	9,624	$	15,259
2019 ⁽²⁾	11,672		749,000		760,672
2020	12,164		—		12,164
2021	12,737		345,000		357,737
2022	13,315		42,400		55,715
Thereafter	28,410		639,689		668,099
Total	$	83,933	$	1,785,713	$	1,869,646

⁽¹⁾ The balloon payment balance in 2018 of $9.6 million includes $2.9 million of capitalized interest for the acceleration of principal payable following an event of default under one non-recourse CMBS loan 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 June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Interest expense – Revolving Credit Facility ⁽¹⁾	$	2,849	$	1,325	$	4,201	$	2,557
Interest expense – Term Loan	—		2,511		—		4,757
Interest expense – Senior Unsecured Notes	3,337		3,338		6,675		6,675
Interest expense – mortgages and notes payable	23,480		27,860		56,187		56,078
Interest expense – Convertible Notes ⁽²⁾	6,128		6,127		12,255		12,255
Non-cash interest expense:
Amortization of deferred financing costs	2,573		2,423		5,552		4,823
Amortization of debt discount, net	3,689		3,242		8,252		6,304
Total interest expense	$	42,056	$	46,826	$	93,122	$	93,449

⁽¹⁾ Includes facility fees of approximately $0.6 million and $0.5 million for the three month periods ended June 30, 2018 and 2017, respectively, and $1.1 million for each of the six months ended June 30, 2018 and 2017.

⁽²⁾ Included in interest expense on the Operating Partnership's consolidated statements of operations and comprehensive income are amounts paid to the Company 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	June 30, 2018			December 31, 2017
			(in Years)	(in Thousands)
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	5.3	%	5.5	170,154			187,704
Total Master Trust 2013 notes	5.3	%	5.5	170,154			312,704
Debt discount, net				—			(36,188		)
Deferred financing costs, net				(4,588		)	(24,010		)
Total Master Trust Notes, net				$	165,566		$	2,188,306

⁽¹⁾ Represents the individual series stated interest rate as of June 30, 2018 and the weighted average stated rate of the total Master Trust Notes, based on the collective series outstanding principal balances as of June 30, 2018.