NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 8. LONG-TERM DEBT Long-term debt at December 31, 2003 and 2002 consists of the following (in thousands): As part of the acquisition of the Charter Oak Partners’ portfolio, we assumed $186.4 million of cross-col- lateralized debt which has a stated, fixed interest rate of 6.59% and matures in July 2008. We recorded the debt at its fair value of $198.3 million with an effective interest rate of 4.97%. Accordingly, a debt pre- mium of $11.9 million was recorded and is being amortized over the life of the debt.  We extended the maturities of our existing four unsecured lines of credit with Bank of America, Fleet National Bank, SouthTrust Bank and Wells Fargo Bank until June 30, 2005 and increased our line of cred- it with Wells Fargo Bank from $10 million to $25 million. This addition brings the total capacity under our lines of credit to $100 million. Amounts available under these facilities at December 31, 2003 totaled $77.35 million. Interest is payable based on alternative interest rate bases at our option. Certain of our properties, which had a net book value of approximately $704.8 million at December 31, 2003, serve as collateral for the fixed and variable rate mortgages. The lines of credit require the maintenance of certain ratios, including debt service coverage and lever- age, and limit the payment of dividends such that dividends and distributions will not exceed funds from operations, as defined in the agreements, for the prior fiscal year on an annual basis or 95% of funds from operations on a cumulative basis. Five of the six existing fixed rate mortgage notes are with insurance companies and contain prepayment penalty clauses. During 2003, we purchased at a 2% premium, $2.6 million of our outstanding 7.875% senior, unsecured public notes that mature in October 2004. The purchases were funded by amounts available under our unsecured lines of credit. These purchases were in addition to $24.9 million of the notes that were pur- chased in 2001 and 2002. We currently have authority from our Board of Directors to purchase an addi- tional $22.4 million of our outstanding 7.875% senior, unsecured public notes and may, from time to time, do so at management’s discretion.  TANGER FACTORY OUTLET CENTERS, INC. 53 2003 2002 7.875% Senior, unsecured notes, maturing October 2004 $ 47,509 $ 50,109 9.125% Senior, unsecured notes, maturing February 2008 100,000 100,000 Mortgage notes with fixed interest 9.77%, maturing April 2005 14,179 14,516 9.125%, maturing September 2005 7,812 8,288 4.97%, maturing July 2008, including net premium of $ 11,852 198,258 — 7.875%, maturing April 2009 61,690 62,874 7.98%, maturing April 2009 18,746 19,036 8.86%, maturing September 2010 15,975 16,207 Mortgage notes with variable interest LIBOR plus 1.75%, maturing March 2006 53,500 53,500 Revolving lines of credit with variable interest rates ranging from either prime less .25% to prime or from LIBOR plus 1.60% to LIBOR plus 1.75% 22,650 20,475 $ 540,319 $ 345,005