Leverage, Line and Term Loan Capacity
Total debt and preferred equity as a percentage of undepreciated real estate assets (adjusted for joint venture partners’ share of real estate assets and debt) was 38.5% at December 31, 2012.
In October 2012, the Company prepaid $53.0 million of 5.50% secured debt at par. The mortgage debt was scheduled to mature in early 2013.
In November 2012, the Company took advantage of recent upgrades to its corporate credit ratings to issue $250.0 million of senior unsecured notes bearing interest at 3.375% and due in 2022.
In December 2012, the Company prepaid $130.1 million of 6.30% senior unsecured notes. The notes were scheduled to mature in mid-2013. In connection with the prepayment, the Company recognized an extinguishment loss of $4.0 million related to the prepayment premiums and the write-off of unamortized deferred loan costs.
As of February 1, 2013, the Company had cash and cash equivalents of $83.0 million. Additionally, the Company had no outstanding borrowings, and letters of credit totaling $0.6 million under its combined $330 million unsecured lines of credit. The Company has no principal debt maturities in either 2013 or 2014.
Computations of debt ratios and reconciliations of the ratios to the appropriate GAAP measures in the Company’s financial statements are included in the financial data (Table 4) accompanying this press release.
At-the-Market Common Equity Activity
The Company has available an at-the-market (“ATM”) common equity program that provides for the sale of up to 4 million shares of common stock. Through the fourth quarter and as of February 1, 2013, no shares have been issued under that program. The Company expects to continue to use its ATM program as an additional source of capital and liquidity, to maintain the strength of its balance sheet and to fund its future investment activities. Sales under this program are dependent upon a variety of factors, including, among others, market conditions, the trading price of the Company’s common stock, the Company’s liquidity position and the potential use of proceeds.