Debt (Tables)

12 Months Ended

Dec. 31, 2015

Debt Instrument [Line Items]

Debt Summary

The following table summarizes our debt at December 31 (dollars in thousands):

	2015					2014
	Weighted Average Interest Rate (1)			Amount Outstanding (2)		Weighted Average Interest Rate (1)			Amount Outstanding
Credit facilities		-	%	$	-		-	%	$	-
Senior notes (3)		3.3	%		6,516,392		3.7	%		6,046,965
Exchangeable senior notes (4)	-				-		3.7	%		456,373
Term loans		2.1	%		2,100,009		1.4	%		568,037
Other debt (5)		6.2	%		15,448		6.2	%		16,087
Secured mortgage debt (6)		5.1	%		1,172,473		6.1	%		1,042,628
Secured mortgage debt of consolidated entities (7)		2.9	%		1,822,509		2.5	%		1,206,887
Totals		3.2	%	$	11,626,831		3.7	%	$	9,336,977

(1) These interest rates represent the effective interest rates (including amortization of the noncash premiums, discounts or debt issuance costs) at the end of the period for the debt outstanding.

(2) Included in the outstanding balances are borrowings denominated in non-U.S. currency, principally: euro ($3.4 billion), Japanese yen ($1.1 billion) and Canadian dollar ($0.4 million).

(3) Notes are due January 2018 to June 2026 and effective interest rates range from 1.5% to 7.6% at December 31, 2015.

(4) As explained below, this debt was paid off in 2015.

(5) The balance at December 31, 2015, represents primarily assessment bonds with varying effective interest rates from 4.5% to 7.9% that are due June 2019 to September 2033. The assessment bonds are issued by municipalities and guaranteed by us as a means of financing infrastructure and secured by assessments (similar to property taxes) on various underlying real estate properties with an aggregate undepreciated cost of $780.3 million at December 31, 2015.

(6) Debt is due May 2016 to December 2025 and effective interest rates range from 0.6% to 7.7% at December 31, 2015. The debt is secured by 175 real estate properties with an aggregate undepreciated cost of $2.9 billion at December 31, 2015.

(7) Debt is due October 2016 to December 2027 and effective interest rates range from 1.9% to 5.3% at December 31, 2015. The debt is secured by 220 real estate properties with an aggregate undepreciated cost of $3.2 billion at December 31, 2015.

Credit Facilities

The following table summarizes information about our Credit Facilities at December 31 (in millions):

	2015			2014			2013
For the years ended December 31:
Weighted average daily interest rate		1.1	%		1.1	%		1.7	%
Weighted average daily borrowings	$	261		$	182		$	789
Maximum borrowings outstanding at any month-end	$	942		$	742		$	1,325
At December 31:
Aggregate lender – commitments	$	2,662		$	2,742		$	2,451
Less:
Borrowings outstanding		-			-			726
Outstanding letters of credit		32			35			73
Current availability	$	2,630		$	2,707		$	1,652

Long-Term Debt Maturities

Principal payments due on our debt, for each year through the period ending December 31, 2025, and thereafter were as follows at December 31, 2015 (in millions):

	Prologis
	Unsecured
	Credit		Senior			Term Loans and			Secured Mortgage						Consolidated Entities’			Total Consolidated
Maturity	Facilities		Notes			Other Debt			Debt			Total			Debt			Debt
2016 (1) (2)	$	-	$	-		$	401		$	363		$	764		$	170		$	934
2017 (3)		-		-			563			8			571			516			1,087
2018		-		175			1			167			343			403			746
2019		-		618			1			305			924			143			1,067
2020		-		849			1			6			856			252			1,108
2021		-		1,262			341			13			1,616			128			1,744
2022		-		762			541			9			1,312			1			1,313
2023		-		850			269			32			1,151			142			1,293
2024		-		762			1			132			895			1			896
2025		-		750			1			129			880			1			881
Thereafter		-		544			6			-			550			2			552
Subtotal		-		6,572			2,126			1,164			9,862			1,759			11,621
Unamortized premiums (discounts), net		-		(23	)		-			13			(10	)		68			58
Unamortized debt issuance costs, net		-		(33	)		(10	)		(5	)		(48	)		(4	)		(52	)
Totals	$	-	$	6,516		$	2,116		$	1,172		$	9,804		$	1,823		$	11,627

(1) We expect to repay the amounts maturing in 2016 related to our wholly owned debt with cash generated from operations, proceeds from dispositions of wholly owned real estate properties, or as necessary, with borrowings on our Credit Facilities.

(2) Included in 2016 maturities is the Senior Term Loan that can be extended until 2017.

(3) Included in 2017 maturities is the Euro Term Loan that can be extended until 2019.

Interest Expense

The following table summarizes the components of interest expense from continuing operations for the years ended December 31 (in thousands):

	2015			2014			2013
Gross interest expense	$	394,012		$	377,666		$	471,923
Amortization of premium, net		(45,253	)		(21,440	)		(39,015	)
Amortization of deferred loan costs		13,412			14,116			14,374
Interest expense before capitalization	$	362,171		$	370,342		$	447,282
Capitalized amounts		(60,808	)		(61,457	)		(67,955	)
Net interest expense	$	301,363		$	308,885		$	379,327
Total cash paid for interest, net of amounts capitalized	$	345,916		$	258,441		$	426,528

Activity Related to Repurchase of Debt and Net Loss on Early Extinguishment of Debt

The following table summarizes the activity related to the repurchase of debt and net loss on early extinguishment of debt for the years ending December 31 (in millions):

	2015		2014		2013
Senior notes:
Original principal amount	$	709.7	$	1,290.4	$	2,142.0
Cash purchase price	$	789.0	$	1,460.3	$	2,411.9
Term loans:
Original principal amount	$	600.0	$	-	$	-
Cash repayment price	$	600.0	$	-	$	-
Secured mortgage debt:
Original principal amount	$	571.5	$	528.0	$	1,570.9
Cash repayment price	$	595.5	$	531.2	$	1,570.9
Total:
Original principal amount	$	1,881.2	$	1,818.4	$	3,712.9
Cash purchase/repayment price	$	1,984.5	$	1,991.5	$	3,982.8
Loss on early extinguishment of debt	$	86.3	$	165.3	$	277.0

Senior Notes [Member]

Debt Instrument [Line Items]

Schedule of Debt

During the years ended December 31 we issued the following senior notes (dollars and euros in thousands):

2015	Principal Amount				Stated Interest Rate		Effective Interest Rate		Maturity Date
May 2015 (1)	€	700,000	$	785,470		1.4%		1.5%	May 2021
October 2015			$	750,000		3.8%		4.0%	November 2025
2014
February 2014 (1)	€	700,000	$	959,420		3.4%		3.5%	February 2024
June 2014 (1)	€	500,000	$	680,550		3.0%		3.1%	June 2026
October 2014 (1)	€	600,000	$	756,420		1.4%		1.4%	October 2020

(1) This debt is denominated in euro and the exchange rate used to calculate into U.S. dollar was the effective rate at the date of the transaction.

Term Loans [Member]

Debt Instrument [Line Items]

Schedule of Debt

The following table summarizes our outstanding term loans at December 31, (dollars in thousands):

Term Loan	Borrowing Currency	Initial Borrowing Date	Lender Commitment at 2015				Balance Outstanding at 2015			Balance Outstanding at 2014			Interest Rate	Maturity Date
			Local		USD		USD			USD
2014 Yen Term Loan (1)	JPY	May 2014	¥	40,916,000	$	339,858	$	339,858		$	342,051		LIBOR plus 1.20%	May 2021
Euro Term Loan (2)	USD, EUR, JPY and GBP	June 2014	€	500,000	$	561,879		561,879			230,679		LIBOR plus 0.98%	June 2017
Senior Term Loan (3) (4)	USD	May 2015			$	400,000		400,000			-		LIBOR plus 1.00%	May 2016
2015 Yen Term Loan (4)	JPY	June 2015	¥	65,000,000	$	539,906		539,906			-		LIBOR plus 1.10%	June 2022
2015 Canadian Term Loan	CAD	December 2015	$	371,925	$	267,872		267,872			-		CDOR rate plus 1.50%	February 2023
Subtotal								2,109,515			572,730
Unamortized debt issuance costs, net								(9,506	)		(4,693	)
Totals							$	2,100,009		$	568,037

(1) We may increase the borrowings to ¥51.1 billion ($424.4 million at December 31, 2015), subject to obtaining additional lender commitments.

(2) We may increase the borrowings up to €1.0 billion ($1.1 billion at December 31, 2015), subject to obtaining additional lender commitments. We may pay down and reborrow on this term loan. We may extend the maturity date twice, by one year each, subject to the satisfaction of certain conditions and payment of an extension fee). During 2015, we borrowed an additional €240 million ($272.6 million). During the second quarter of 2015, we paid off the entire euro balance and subsequently borrowed $561.9 million in connection with the KTR transaction.