Secured and Unsecured Debt of the Operating Partnership | Secured and Unsecured Debt of the Operating Partnership Secured Debt The following table sets forth the composition of our secured debt as of September 30, 2015 and December 31, 2014 : Type of Debt Annual Stated Interest Rate (1) GAAP Effective Rate (1)(2) Maturity Date September 30, 2015 (3) December 31, 2014 (3) (in thousands) Mortgage note payable 4.27% 4.27% February 2018 $ 128,937 $ 130,767 Mortgage note payable (4) 4.48% 4.48% July 2027 96,743 97,000 Mortgage note payable (4) 6.05% 3.50% June 2019 86,737 89,242 Mortgage note payable 6.51% 6.51% February 2017 65,841 66,647 Mortgage note payable (4) (5) 5.23% 3.50% January 2016 51,431 52,793 Mortgage note payable (4) (5) 5.57% 3.25% February 2016 39,188 40,258 Mortgage note payable (6) 5.09% 3.50% August 2015 — 34,311 Mortgage note payable (6) 4.94% 4.00% April 2015 — 26,285 Mortgage note payable 7.15% 7.15% May 2017 4,649 6,568 Other Various Various Various 2,397 2,421 Total $ 475,923 $ 546,292 ________________________ (1) All interest rates presented are fixed-rate interest rates. (2) This represents the rate at which interest expense is recorded for financial reporting purposes, which reflects the amortization of discounts/premiums, excluding debt issuance costs. (3) Amounts reported include the amounts of unamortized debt premiums of $7.2 million and $10.3 million as of September 30, 2015 and December 31, 2014 , respectively. (4) The secured debt and the related properties that secure the debt are held in a special purpose entity and the properties are not available to satisfy the debts and other obligations of the Company or the Operating Partnership. (5) These mortgage notes payable were repaid in October 2015 at par. (6) These mortgage notes payable were repaid during the nine months ended September 30, 2015 at par. Although our mortgage loans are secured and non-recourse to the Company and the Operating Partnership, the Company provides limited customary secured debt guarantees for items such as voluntary bankruptcy, fraud, misapplication of payments and environmental liabilities. Unsecured Senior Notes In September 2015, the Operating Partnership issued $400.0 million of aggregate principal amount of unsecured senior notes in a registered public offering. The outstanding balance of the unsecured senior notes is included in unsecured debt, net of issuance discount of $2.2 million , on our consolidated balance sheets. The unsecured senior notes, which are scheduled to mature on October 1, 2025 , require semi-annual interest payments each April and October based on a stated annual interest rate of 4.375% . The Company will use the net proceeds to repay the 5.000% Unsecured Senior Notes upon maturity in November 2015 and other general corporate purposes, including the repayment of debt and funding development expenditures. The following table summarizes the balance and significant terms of the registered unsecured senior notes issued by the Operating Partnership as of September 30, 2015 and December 31, 2014 : Principal Amount as of Issuance date Maturity date Stated coupon rate Effective interest rate (1) September 30, 2015 December 31, (in thousands) 4.375% Unsecured Senior Notes (2) September 2015 October 2025 4.375% 4.440% $ 400,000 $ — Unamortized discount $ (2,215 ) $ — Net carrying amount $ 397,785 $ — 4.250% Unsecured Senior Notes (3) July 2014 August 2029 4.250% 4.350% $ 400,000 $ 400,000 Unamortized discount (4,124 ) (4,348 ) Net carrying amount $ 395,876 $ 395,652 3.800% Unsecured Senior Notes (4) January 2013 January 2023 3.800% 3.804% $ 300,000 $ 300,000 Unamortized discount (72 ) (79 ) Net carrying amount $ 299,928 $ 299,921 4.800% Unsecured Senior Notes (4) (5) July 2011 July 2018 4.800% 4.827% $ 325,000 $ 325,000 Unamortized discount (209 ) (265 ) Net carrying amount $ 324,791 $ 324,735 6.625% Unsecured Senior Notes (6) May 2010 June 2020 6.625% 6.743% $ 250,000 $ 250,000 Unamortized discount (994 ) (1,154 ) Net carrying amount $ 249,006 $ 248,846 5.000% Unsecured Senior Notes (7) November 2010 November 2015 5.000% 5.014% $ 325,000 $ 325,000 Unamortized discount (4 ) (33 ) Net carrying amount $ 324,996 $ 324,967 ________________________ (1) This represents the rate at which interest expense is recorded for financial reporting purposes, which reflects the amortization of initial issuance discounts, excluding debt issuance costs. (2) Interest on these notes is payable semi-annually in arrears on April 1st and October 1st of each year. (3) Interest on these notes is payable semi-annually in arrears on February 15th and August 15th of each year. (4) Interest on these notes is payable semi-annually in arrears on January 15th and July 15th of each year. (5) In October 2015, certain common limited partners in the Operating Partnership that previously contributed their interests in the property at 6255 W. Sunset Blvd., Los Angeles, California to the Operating Partnership entered into an agreement with the Company. Pursuant to this agreement, such common limited partners will reimburse the Company for a portion of any amounts the Company may be required to pay pursuant to its guarantee of the Operating Partnership’s 4.800% Senior Notes due 2018 or that the Company may otherwise become required to pay under applicable law with respect to such notes. (6) Interest on these notes is payable semi-annually in arrears on June 1st and December 1st of each year. (7) Interest on these notes is payable semi-annually in arrears on May 3rd and November 3rd of each year. Unsecured Revolving Credit Facility and Term Loan Facility The following table summarizes the balance and terms of our unsecured revolving credit facility as of September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 (in thousands) Outstanding borrowings $ — $ 140,000 Remaining borrowing capacity 600,000 460,000 Total borrowing capacity (1) $ 600,000 $ 600,000 Interest rate (2) — % 1.41 % Facility fee-annual rate (3) 0.200 % 0.250 % Maturity date July 2019 ________________________ (1) We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $311.0 million under an accordion feature under the terms of the unsecured revolving credit facility and term loan facility. (2) Our unsecured revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.050% and LIBOR plus 1.250% as of September 30, 2015 and December 31, 2014 , respectively. (3) Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of September 30, 2015 , $4.9 million of deferred financing costs remains to be amortized through the maturity date of our unsecured revolving credit facility. The Company intends to borrow amounts under the unsecured revolving credit facility from time to time for general corporate purposes, to fund potential acquisitions, to finance development and redevelopment expenditures and to potentially repay long-term debt. The following table summarizes the balance and terms of our unsecured term loan facility as of September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 (in thousands) Outstanding borrowings $ 150,000 $ 150,000 Interest rate (1) 1.35 % 1.56 % Maturity date July 2019 ________________________ (1) Our unsecured term loan facility interest rate was calculated based on an annual rate of LIBOR plus 1.150% and LIBOR plus 1.400% as of September 30, 2015 and December 31, 2014 , respectively. Additionally, the Company has a $39.0 million unsecured term loan outstanding with an annual interest rate of LIBOR plus 1.150% and LIBOR plus 1.400% as of September 30, 2015 and December 31, 2014 , respectively, that matures in July 2019. Debt Covenants and Restrictions The unsecured revolving credit facility, the unsecured term loan facility, the unsecured term loan, the unsecured senior notes, and certain other secured debt arrangements contain covenants and restrictions requiring us to meet certain financial ratios and reporting requirements. Some of the more restrictive financial covenants include a maximum ratio of total debt to total asset value, a minimum fixed-charge coverage ratio, a minimum unsecured debt ratio and a minimum unencumbered asset pool debt service coverage ratio. Noncompliance with one or more of the covenants and restrictions could result in the full principal balance of the associated debt becoming immediately due and payable. We believe we were in compliance with all of our debt covenants as of September 30, 2015 . Debt Maturities The following table summarizes the stated debt maturities and scheduled amortization payments, excluding debt discounts and premiums, as of September 30, 2015 : Year (in thousands) Remaining 2015 $ 327,768 2016 99,431 2017 71,748 2018 451,728 2019 265,370 Thereafter 1,441,643 Total (1) $ 2,657,688 ________________________ (1) Includes gross principal balance of outstanding debt before impact of net unamortized discounts totaling approximately $0.4 million . Capitalized Interest and Loan Fees The following table sets forth gross interest expense reported in continuing operations, including debt discount/premium and loan cost amortization, net of capitalized interest, for the three and nine months ended September 30, 2015 and 2014 . The interest expense capitalized was recorded as a cost of development and redevelopment, and increased the carrying value of undeveloped land and construction in progress. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Gross interest expense $ 27,386 $ 29,936 $ 82,322 $ 85,740 Capitalized interest and loan fees (14,567 ) (13,328 ) (37,761 ) (35,860 ) Interest expense $ 12,819 $ 16,608 $ 44,561 $ 49,880 |