SPIRIT REALTY CAPITAL, INC. - 10-Q filing on 2020-07-31

Debt (Tables)

6 Months Ended

Jun. 30, 2020

The Company's debt is summarized below (dollars in thousands):

	Weighted Average Effective Interest Rates ⁽¹⁾	Weighted Average Stated Interest Rates ⁽²⁾		Weighted Average Remaining Years to Maturity⁽³⁾		June 30, 2020			December 31, 2019
Revolving credit facilities	3.66%		—		2.8	$	—		$	116,500
Term loans	1.96%	1.69%			1.8		400,000			—
Senior Unsecured Notes	3.85%	3.73%			8.1		1,500,000			1,500,000
CMBS	5.81%	5.47%			3.3		216,316			218,338
Convertible Notes	5.64%	3.75%			0.9		345,000			345,000
Total debt	4.10%	3.55%			5.7		2,461,316			2,179,838
Debt discount, net							(6,804	)		(9,272	)
Deferred financing costs, net ⁽⁴⁾							(18,004	)		(17,549	)
Total debt, net						$	2,436,508		$	2,153,017

⁽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 six months ended June 30, 2020 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, 2020.

⁽³⁾	Represents the weighted average remaining years to maturity based on the outstanding principal balance as of June 30, 2020.

⁽⁴⁾	The Company records deferred financing costs for its revolving credit facilities in deferred costs and other assets, net on its consolidated balance sheets.

Summary of Senior Unsecured Notes

The following is a summary of the Senior Unsecured Notes outstanding (dollars in thousands):

	Maturity Date	Stated Interest Rate	June 30, 2020		December 31, 2019
2026 Senior Notes	September 15, 2026	4.45%	$	300,000	$	300,000
2027 Senior Notes	January 15, 2027	3.20%		300,000		300,000
2029 Senior Notes	July 15, 2029	4.00%		400,000		400,000
2030 Senior Notes	January 15, 2030	3.40%		500,000		500,000
Total Senior Unsecured Notes		3.73%	$	1,500,000	$	1,500,000

Schedule of Debt Maturities

As of June 30, 2020, scheduled debt maturities, including balloon payments, were as follows (in thousands):

	Scheduled Principal		Balloon Payment		Total
Remainder of 2020	$	2,078	$	—	$	2,078
2021		4,365		345,000		349,365
2022		4,617		400,000		404,617
2023		3,074		197,912		200,986
2024		590		—		590
Thereafter		3,610		1,500,070		1,503,680
Total	$	18,334	$	2,442,982	$	2,461,316

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,
	2020		2019		2020		2019
Interest expense – revolving credit facilities ⁽¹⁾	$	804	$	1,798	$	2,860	$	3,976
Interest expense – term loans		1,671		5,691		1,671		9,669
Interest expense – Senior Unsecured Notes		13,987		3,515		27,975		6,853
Interest expense – mortgages and notes payable		2,998		5,829		6,011		12,082
Interest expense – Convertible Notes ⁽²⁾		3,235		4,649		6,469		10,776
Non-cash interest expense:
Amortization of deferred financing costs		1,456		1,774		2,598		3,805
Amortization of debt discount, net		1,242		1,920		2,466		4,626
Amortization of net losses related to interest rate swaps		702		—		1,404		—
Total interest expense	$	26,095	$	25,176	$	51,454	$	51,787

⁽¹⁾	Includes facility fees of approximately $0.4 million and $0.5 million for the three months ended June 30, 2020 and 2019, respectively, and $0.8 million and $1.2 million for the six months ended June 30, 2020 and 2019, respectively.

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