violates any of these restrictive financial covenants, it could cause the indebtedness under the Credit Facility to be accelerated  and may impair NNN’s access to the debt and equity markets and limit NNN’s ability to pay dividends to its common and  preferred stockholders, each of which would likely have a material adverse impact on NNN’s financial condition and results of  operations. Mortgages Payable. The following table outlines the mortgages payable included in NNN’s consolidated financial statements  (dollars in thousands): (1)  Each loan is secured by a first mortgage lien on certain of NNN’s properties. The carrying values of the assets are as of  December 31, 2013. (2)  Date entered represents the date that NNN acquired real estate subject to a mortgage securing a loan. The corresponding  original principal balance represents the outstanding principal balance at the time of acquisition. (3)  Monthly payments include interest and principal, if any; the balance is due at maturity. (4)  Initial balance and outstanding principal balance includes unamortized premium. Notes Payable – Convertible. Each of NNN’s outstanding series of convertible notes are summarized in the table below  (dollars in thousands, except conversion price): The carrying amounts of the Company’s convertible debt and equity balances are summarized in the table below as of  December 31 (dollars in thousands): As of December 31, 2013, the debt discount for both the 2028 Notes and the 2026 Notes had been fully amortized.  33 Entered Initial Balance Interest Rate Maturity (3) Carrying Value of Encumbered Asset(s)$^{(1)}$  Outstanding Principal Balance at December 31, 2013 2012 December 2001 (2) $ 623 9.00% April 2014 $ 438 $ 27 $ 95 December 2001 (2) 698 9.00% April 2019 968 263 299 December 2001 (2) 485 9.00% April 2019 936 136 155 February 2004 (2) 6,952 6.90% January 2017 10,797 2,257 2,892 March 2005 (2) 1,015 8.14% September 2016 1,264 335 439 June 2012  (2)(4) 6,850 5.75% April 2016 8,717 6,457 6,722 $ 23,120 $ 9,475 $ 10,602 Terms 2026 Notes 2028 Notes Issue Date September 2006 March 2008 Net Proceeds $ 168,650 $ 228,576 Stated Interest Rate 3.950% 5.125% Effective Interest Rate 5.840% 7.192% Debt Issuance Costs $ 3,850 $ 5,459 Original Principal $ 172,500 $ 234,035 Repurchases (33,800) (11,000) Settled (138,700) (223,035) Outstanding principal balance at December 31, 2013 $ — $ — 2013 2012 Carrying value of equity component $ — $ (22,193) Principal amount of convertible debt — 238,572 Remaining unamortized debt discount — (2,072) Net carrying value of convertible debt $ — $ 214,307