based on the average daily closing price of NNN's common stock price over a period of 20 days commencing after receipt of a  note holder's conversion notice. In 2013, the Company issued 2,407,911 shares of common stock and paid approximately  $226,427,000 in aggregate settlement value for the $223,035,000 aggregate principal amount of 2028 Notes outstanding. The  difference between the amount paid and the principal amount of the settled notes of $3,197,000 was recognized as a decrease to  additional paid-in capital and $195,000 was recorded as interest expense. Each of NNN’s outstanding series of non-convertible notes is summarized in the table below (dollars in thousands): Note 9 – Notes Payable: (1)  The proceeds from the note issuance were used to pay down outstanding indebtedness of NNN’s Credit Facility. (2)  The proceeds from the note issuance were used to repay the obligation of the 2004 Notes. (3)  The note discounts are amortized to interest expense over the respective term of each debt obligation using the effective interest method. (4)  Includes the effects of the discount, treasury lock gain / loss and swap gain / loss, as applicable. (5)  NNN entered into a forward starting interest rate swap agreement which fixed a swap rate of 4.61% on a notional amount of $94,000.  Upon issuance of the 2014 Notes, NNN terminated the forward starting interest rate swap agreement resulting in a gain of $4,148. The  gain has been deferred and is being amortized as an adjustment to interest expense over the term of the 2014 Notes using the effective  interest method. (6)  NNN entered into an interest rate hedge with a notional amount of $100,000. Upon issuance of the 2017 Notes, NNN terminated the  interest rate hedge agreement resulting in a liability of $3,260, of which $3,228 was recorded to other comprehensive income. The  liability has been deferred and is being amortized as an adjustment to interest expense over the term of the 2017 Notes using the  effective interest method. (7)  NNN entered into two interest rate hedges with a total notional amount of $150,000. Upon issuance of the 2021 Notes, NNN terminated  the interest rate hedge agreements resulting in a liability of $5,300, of which $5,218 was deferred in other comprehensive income. The  deferred liability is being amortized over the term of the note using the effective interest method. (8)  NNN entered into four forward starting swaps with an aggregate notional amount of $240,000. Upon issuance of the 2023 Notes, NNN  terminated the forward starting swaps resulting in a liability of $3,156, of which $3,141 was deferred in other comprehensive income. The deferred liability is being amortized over the term of the note using the effective interest method. (9)  NNN plans to use proceeds from the Credit Facility and/or potential debt or equity offerings to repay the outstanding indebtedness. Each series of the notes represents senior, unsecured obligations of NNN and is subordinated to all secured indebtedness of  NNN. Each of the notes is redeemable at the option of NNN, in whole or in part, at a redemption price equal to the sum of  (i) the principal amount of the notes being redeemed plus accrued and unpaid interest thereon through the redemption date and  (ii) the make-whole amount, if any, as defined in the applicable supplemental indenture relating to the notes. In connection with the debt offerings, NNN incurred debt issuance costs totaling $13,550,000 consisting primarily of  underwriting discounts and commissions, legal and accounting fees, rating agency fees and printing expenses. Debt issuance  costs for all note issuances have been deferred and are being amortized over the term of the respective notes using the effective  interest method. In June 2012, NNN repaid the $50,000,000 7.750% notes payable that were due in June 2012. In accordance with the terms of the indenture, pursuant to which NNN’s notes have been issued, NNN is required to meet  certain restrictive financial covenants, which, among other things, require NNN to maintain (i) certain leverage ratios and  (ii) certain interest coverage. At December 31, 2013, NNN was in compliance with those covenants.  63 Notes Issue Date Principal Discount (3) Net Price Stated Rate Effective Rate (4) Maturity Date 2014 (1)(2)(5)(9) June 2004 $ 150,000 $ 440 149,560 6.250% 5.910% June 2014 2015 (1) November 2005 150,000 390 149,610 6.150% 6.185% December 2015 2017 (1)(6) September 2007 250,000 877 249,123 6.875% 6.924% October 2017 2021 (1)(7) July 2011 300,000 4,269 295,731 5.500% 5.690% July 2021 2022  (1) August 2012 325,000 4,989 320,011 3.800% 3.984% October 2022 2023 (1)(8) April 2013 350,000 2,594 347,406 3.300% 3.388% April 2023