Cousins Properties Incorporated 2006 Annual Report - SNL Financial

London Interbank Offering Rate (“LIBOR”) plus a spread which was based on the Company’s ratio of total debt to
total assets, as defined by the credit facility, according to the following table:
Leverage Ratio
Applicable
Spread
� to35%............................................................ 0.90%
�35% but � 45% ..................................................... 1.00%
�45% but � 50% ..................................................... 1.10%
�50% but � 55% ..................................................... 1.35%
�55% .............................................................. 1.50%
On March 7, 2006, the Company recast its unsecured revolving credit facility (“Revolver”), increasing the size
by $75 million to $400 million and extending the maturity date to March 7, 2010, with an additional one-year
extension. The Revolver can be expanded to $500 million under certain circumstances, although the availability of
the additional capacity is not guaranteed. The Revolver provides for additional flexibility in some of the financial
covenants as compared to the previous facility. Additionally, the Revolver imposes restrictions on the level of
common and preferred dividends only if the Company’s leverage ratio, as defined by the Revolver, is greater than
55%. Generally interest is calculated under the Revolver equal to LIBOR plus an additional spread based on the
ratio of total debt to total assets, as defined according to the following table:
Leverage Ratio
COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Applicable
Spread
� to35%............................................................ 0.80%
�35% but � 45% ..................................................... 0.90%
�45% but � 50% ..................................................... 1.00%
�50% but � 55% ..................................................... 1.15%
�55% .............................................................. 1.30%
On March 7, 2006 and simultaneous with the recast of the Revolver, the Company entered into an unsecured
$100 million construction facility. While this facility is unsecured, advances under the facility are to be used to fund
the construction costs of the Terminus 100 project. This facility has the same maturity date and key provisions as the
Revolver.
The Company had $128.2 million drawn on the Revolver as of December 31, 2006 and, net of $3.0 million
reserved for outstanding letters of credit, the Company had $268.8 million available for future borrowings under the
Revolver. At December 31, 2006, the interest rate on the borrowings outstanding under the Revolver was 6.12%.
The Company had $64.7 million drawn on its construction facility as of December 31, 2006.
In conjunction with the venture formation on June 29, 2006, as described in Note 5 herein, The Avenue East
Cobb mortgage note payable was assumed by CP Venture IV Holdings LLC (“CPV IV”). The Company recognized
a loss on extinguishment of debt of approximately $2.8 million in 2006 in conjunction with this loan assumption.
In conjunction with the sale of Bank of America Plaza in September 2006 discussed in Note 9 herein, the
Company repaid its note payable to CSC Associates, L.P. (“CSC”) secured by its interest in CSC. CSC had a
corresponding note payable to a third party secured by Bank of America Plaza which was also repaid in conjunction
with the sale. CSC incurred defeasance costs that the Company was obligated to fund. The defeasance costs and the
unamortized balance of deferred loan costs totaled approximately $15.4 million and were recorded as a loss on
extinguishment of debt in 2006 in the accompanying Consolidated Statements of Income.
The 905 Juniper construction loan was repaid in full in 2006 as all of the multi-family residential units in the
project underlying the loan were sold. Also in 2006, two ventures which the Company consolidates obtained loans
from the ventures’ minority partner. One was for construction of the second building at the King Mill industrial
project, which has a maximum available of $2.3 million, an interest rate of 9.0% and a maturity of June 26, 2009.
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