The Company's unconsolidated affiliates retired the following construction loans, secured by the related unconsolidated Properties, in 2016:

<table><tr><td>Date</td><td>Property</td><td>Interest
Rate at
Repayment Date</td><td>Scheduled
Maturity Date</td><td>Principal
Balance
Repaid</td></tr><tr><td>June</td><td>Fremaux Town Center ­ Phase I (1)</td><td>2.44%</td><td>August 2016</td><td>$            40,530</td></tr><tr><td>June</td><td>Fremaux Town Center ­ Phase II (1)</td><td>2.44%</td><td>August 2016</td><td>30,595</td></tr><tr><td>June</td><td>Ambassador Town Center (2)</td><td>2.24%</td><td>December 2017</td><td>41,885</td></tr></table>

(1) The construction loan was retired using a portion of the net proceeds from a \$73,000 fixed­rate non­recourse mortgage loan. See 2016 Financings above for more information.

(2) The construction loan was retired using a portion of the net proceeds from a \$47,660 fixed­rate non­recourse mortgage loan. Excess proceeds were utilized to fund remaining construction costs. See 2016 Financings above for more information.

# Cost Method Investment

The Company owned a 6.2% noncontrolling interest in Jinsheng, an established mall operating and real estate development company located in Nanjing, China, which owned controlling interests in home furnishing shopping malls. In the fourth quarter of 2016, the Company received \$15,538 from Jinsheng for the redemption of its interest that had a carrying value of \$5,325 and recorded a gain on investment of \$10,136. The Company had previously recorded an other­than­temporary impairment of \$5,306 related to this investment in 2009 upon the decline of China's real estate market. The Company accounted for its noncontrolling interest in Jinsheng using the cost method because the Company did not exercise significant influence over Jinsheng and there was no readily determinable market value of Jinsheng’s shares since they are not publicly traded.

# NOTE 6. MORTGAGE AND OTHER INDEBTEDNESS, NET

# Debt of the Company

CBL has no indebtedness. Either the Operating Partnership or one of its consolidated subsidiaries, that it has a direct or indirect ownership interest in, is the borrower on all of the Company's debt.

CBL is a limited guarantor of the Senior Unsecured Notes, as described below, for losses suffered solely by reason of fraud or willful misrepresentation by the Operating Partnership or its affiliates. The Company also provides a similar limited guarantee of the Operating Partnership's obligations with respect to its unsecured credit facilities and three unsecured term loans as of December 31, 2017.

# Debt of the Operating Partnership

Mortgage and other indebtedness consisted of the following:

<table><tr><td rowspan="2"></td><td colspan="2">December 31, 2017</td><td colspan="2">December 31, 2016</td></tr><tr><td>Amount</td><td>Weihgted-
Average
Interest
Rate (1)</td><td>Amount</td><td>Weihgted-
Average
Interest
Rate (1)</td></tr><tr><td>Fixed­rate debt:</td><td></td><td></td><td></td><td></td></tr><tr><td>   Non­recourse loans on operating Properties</td><td>$     1,796,203</td><td>5.33%</td><td>$     2,453,628</td><td>5.55%</td></tr><tr><td>Senior unsecured notes due 2023 (2)</td><td>446,976</td><td>5.25%</td><td>446,552</td><td>5.25%</td></tr><tr><td>Senior unsecured notes due 2024 (3)</td><td>299,946</td><td>4.60%</td><td>299,939</td><td>4.60%</td></tr><tr><td>Senior unsecured notes due 2026 (4)</td><td>615,848</td><td>5.95%</td><td>394,260</td><td>5.95%</td></tr><tr><td>Total fixed­rate debt</td><td>3,158,973</td><td>5.37%</td><td>3,594,379</td><td>5.48%</td></tr><tr><td>Variable­rate debt:</td><td></td><td></td><td></td><td></td></tr><tr><td>Non­recourse loans on operating Properties</td><td>10,836</td><td>3.37%</td><td>19,055</td><td>3.13%</td></tr><tr><td>Recourse loans on operating Properties (5)</td><td>101,187</td><td>4.00%</td><td>24,428</td><td>3.29%</td></tr><tr><td>Construction loan (5)</td><td>—</td><td>—%</td><td>39,263</td><td>3.12%</td></tr></table>

<table><tr><td rowspan="2"></td><td colspan="2">December 31, 2017</td><td colspan="2">December 31, 2016</td></tr><tr><td>Amount</td><td>Weihgted-
Average
Interest
Rate (1)</td><td>Amount</td><td>Weihgted-
Average
Interest
Rate (1)</td></tr><tr><td>Unsecured lines of credit</td><td>93,787</td><td>2.56%</td><td>6,024</td><td>1.82%</td></tr><tr><td>Unsecured term loans (6)</td><td>885,000</td><td>2.81%</td><td>800,000</td><td>2.04%</td></tr><tr><td>Total variable­rate debt</td><td>1,090,810</td><td>2.90%</td><td>888,770</td><td>2.15%</td></tr><tr><td>Total fixed­rate and variable­rate debt</td><td>4,249,783</td><td>4.74%</td><td>4,483,149</td><td>4.82%</td></tr><tr><td>Unamortized deferred financing costs</td><td>(18,938)</td><td></td><td>(17,855)</td><td></td></tr><tr><td>Total mortgage and other indebtedness, net</td><td>$     4,230,845</td><td></td><td>$     4,465,294</td><td></td></tr></table>

(1) Weighted­average interest rate includes the effect of debt premiums and discounts, but excludes amortization of deferred financing costs.

(2) The balance is net of an unamortized discount of \$3,024 and \$3,448, as of December 31, 2017 and 2016, respectively.

(3) The balance is net of an unamortized discount of \$54 and \$61, as of December 31, 2017 and 2016, respectively.

(4) In September 2017, the Operating Partnership issued and sold an additional \$225,000 of the series of 2026 Notes. The balance is net of an unamortized discount of\$9,152 and \$5,740 as of December 31, 2017 and 2016, respectively.

(5) The Outlet Shoppes at Laredo opened in 2017 and the construction loan balance from December 31, 2016 is included in recourse loans on operating Properties as of December 31, 2017.

(6) The Company extended and modified its three unsecured term loans in July 2017. See below for additional information.

Non­recourse and recourse term loans include loans that are secured by Properties owned by the Company that have a net carrying value of \$2,073,448 at December 31, 2017.

# Senior Unsecured Notes

<table><tr><td>Description</td><td>Issued (1)</td><td>Amount</td><td>Interest Rate (2)</td><td>Maturity Date (3)</td></tr><tr><td>2023 Notes</td><td>November 2013</td><td>$             450,000</td><td>5.25%</td><td>December 2023</td></tr><tr><td>2024 Notes</td><td>October 2014</td><td>300,000</td><td>4.60%</td><td>October 2024</td></tr><tr><td>2026 Notes</td><td>December 2016 / September 2017 (4)</td><td>625,000</td><td>5.95%</td><td>December 2026</td></tr></table>

(1) Issued by the Operating Partnership. CBL is a limited guarantor of the Operating Partnership's obligations under the Notes as described above.

(2) Interest is payable semiannually in arrears. The interest rate for the 2024 Notes and the 2023 Notes is subject to an increase ranging from 0.25% to 1.00% from time to time if, on or after January 1, 2016 and prior to January 1, 2020, the ratio of secured debt to total assets of the Company, as defined, is greater than 40% but less than 45%. The required ratio of secured debt to total assets for the 2026 Notes is 40% or less. As of December 31, 2017, this ratio was 23% as shown below.

(3) The Notes are redeemable at the Operating Partnership's election, in whole or in part from time to time, on not less than 30 days and not more than 60 days' notice to the holders of the Notes to be redeemed. The 2026 Notes, the 2024 Notes and the 2023 Notes may be redeemed prior to September 15, 2026; July 15, 2024; and September 1, 2023, respectively, for cash at a redemption price equal to the aggregate principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but not including, the redemption date and a make­whole premium calculated in accordance with the indenture. On or after the redemption date, the Notes are redeemable for cash at a redemption price equal to the aggregate principal amount of the Notes to be redeemed plus accrued and unpaid interest. If redeemed prior to the respective dates noted above, each issuance of Notes is redeemable at the treasury rate plus 0.50%, 0.35% and 0.40% for the 2026 Notes, the 2024 Notes and the 2023 Notes, respectively.

(4) On September 1, 2017, the Operating Partnership issued and sold an additional \$225,000 of the 2026 Notes. Interest was payable with respect to the additional issuance on December 15, 2017. After deducting underwriting discounts and other offering expenses of \$1,879 and a discount of \$3,938, the net proceeds from the sale were approximately \$219,183. The Operating Partnership used the net proceeds to reduce amounts outstanding under its unsecured credit facilities and for general business purposes.

# Unsecured Lines of Credit

The Company has three unsecured credit facilities that are used for retirement of secured loans, repayment of term loans, working capital, construction and acquisition purposes, and issuances of letters of credit.

Each facility bears interest at LIBOR plus a spread of 87.5 to 155 basis points based on credit ratings for the Operating Partnership's senior unsecured long­term indebtedness. As of December 31, 2017, the Operating Partnership's interest rate based on the credit ratings of its unsecured long­term indebtedness of Baa3 from Moody's Investors Service ("Moody's"), BBB­ from Standard & Poor's Rating Services ("S&P") and BB+ from Fitch Ratings ("Fitch"), is LIBOR plus 120 basis points.