Debt

12 Months Ended

Dec. 31, 2018

As of December 31, 2018 and December 31, 2017, the Company’s debt consisted of the following:



	December 31,						Contractual Interest Rate ⁽¹⁾	Loan Maturity	Effective Interest Rate ⁽²⁾
	2018			2017			Contractual Interest Rate ⁽¹⁾	Loan Maturity	Effective Interest Rate ⁽²⁾
HealthSpring loan	$	21,219		$	21,694		4.18%	April 2023	4.60%
Midland loan	102,262			104,197			3.94%	April 2023	4.11%
Emporia Partners loan	2,554			2,978			5.88%	September 2023	5.96%
Samsonite loan	22,085			22,961			6.08%	September 2023	5.18%
Highway 94 loan	16,497			17,352			3.75%	August 2024	4.68%
Bank of America loan	375,000			375,000			3.77%	October 2027	3.91%
AIG loan	107,562			109,275			4.96%	February 2029	5.07%
TW Telecom loan ⁽³⁾	—			19,169			—	—	—%
Total Mortgage Debt	647,179			672,626
Term Loan	715,000			715,000			LIBO Rate +1.40% ⁽⁴⁾	July 2020	4.16%
Revolver Loan	—			10,153			LIBO Rate +1.45% ⁽⁴⁾	July 2020 ⁽⁴⁾	4.01%
Total Debt	1,362,179			1,397,779
Unamortized Deferred Financing Costs and Discounts, net	(8,648		)	(11,695		)
Total Debt, net	$	1,353,531		$	1,386,084


(1)	Including the effect of an interest rate swap agreement with a total notional amount of $425.0 million, the weighted average interest rate as of December 31, 2018 was 3.76% for the Company’s fixed-rate and variable-rate debt combined and 3.75%the Company’s fixed-rate debt only.


(2)	Reflects the effective interest rate as of December 31, 2018 and includes the effect of amortization of discounts/premiums and deferred financing costs.


(3)	In March 2018, the Company, through the Operating Partnership, paid off the remaining balance of the TW Telecom loan.


(4)	LIBOR (defined below) as of December 31, 2018 was 2.35%. The Revolver Loan has an initial term of four years, maturing on July 20, 2019, and may be extended for a one-year period if certain conditions are met and upon payment of an extension fee. See discussion below.

Unsecured Credit Facility

On July 20, 2015, the Company, through the Operating Partnership, entered into an amended and restated credit agreement, as amended by that certain first amendment to amended and restated credit agreement dated as of February 12, 2016 (as amended, the "Unsecured Credit Agreement") with a syndicate of lenders, co-led by KeyBank National Association ("KeyBank"), Bank of America, N.A. ("Bank of America"), Fifth Third Bank ("Fifth Third"), and BMO Harris Bank, N.A. ("BMO Harris"), under which KeyBank serves as administrative agent and Bank of America, Fifth Third, and BMO Harris serve as co-syndication agents, and KeyBanc Capital Markets, Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch"), Fifth Third, and BMO Capital Markets serve as joint bookrunners and joint lead arrangers. Pursuant to the Unsecured Credit Agreement, the Company was provided with a $1.14 billion senior unsecured credit facility (the "Unsecured Credit Facility"), consisting of a $500.0 million senior unsecured revolver (the "Revolver Loan") and a $640.0 million senior unsecured term loan (the "Term Loan"). The Unsecured Credit Facility may be increased up to $860.0 million, in minimum increments of $50.0 million, for a maximum of $2.0 billion by increasing either the Revolver Loan, the Term Loan, or both. The Revolver Loan has an initial term of four years, maturing on July 20, 2019, and may be extended for a one-year period if certain conditions are met and upon payment of an extension fee. The Term Loan has a term of five years, maturing on July 20, 2020. On March 29, 2016, the Company exercised its right to increase the total commitments, pursuant to the Unsecured Credit Agreement. As a result, the total commitments on the Term Loan increased from $640.0 million to $715.0 million.

Bank of America Loan

On September 29, 2017, the Company, through ten SPEs wholly owned by the Operating Partnership, entered into a loan agreement with Bank of America, N.A. (together with its successors and assigns, the "Lender") in which the Company borrowed $375.0 million (the “Bank of America Loan”). The Bank of America Loan is secured by cross-collateralized and cross-defaulted first mortgage liens on ten properties. The Bank of America Loan has a term of 10 years, maturing on October 1, 2027. The Bank of America Loan bears interest at a rate of 3.77% and requires monthly payments of interest only.

Debt Covenant Compliance

Pursuant to the terms of the Company's mortgage loans, Unsecured Credit Facility and Bank of America Loan, the Operating Partnership, in consolidation with the Company, is subject to certain loan compliance covenants. The Company was in compliance with all of its debt covenants as of December 31, 2018.

The following summarizes the future principal repayments of all loans as of December 31, 2018 per the loan terms discussed above:



	December 31, 2018
2019	$	6,570
2020	721,881
2021	7,211
2022	7,556
2023	115,839
Thereafter	503,122
Total principal	1,362,179
Unamortized debt premium/(discount)	(250		)
Unamortized deferred loan costs	(8,398		)
Total	$	1,353,531

Griffin Capital Essential Asset REIT, Inc. 10-K