NOTE 7. DEBT

All debt is incurred by the Operating Partnership. The Parent does not have any indebtedness, but guarantees the unsecured debt of the Operating Partnership.

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

	June 30, 2016					December 31, 2015
	Weighted Average Interest Rate (1)			Amount Outstanding (2)		Weighted Average Interest Rate (1)			Amount Outstanding
Credit facilities		-		$	-		-		$	-
Senior notes		3.3	%		6,603,070		3.3	%		6,516,392
Term loans		1.9	%		1,829,787		2.1	%		2,100,009
Other		6.2	%		14,930		6.2	%		15,448
Secured mortgages		5.3	%		901,071		5.1	%		1,172,473
Secured mortgages of consolidated entities		3.0	%		1,790,557		2.9	%		1,822,509
Totals		3.2	%	$	11,139,415		3.2	%	$	11,626,831

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

(2)	Included in the outstanding balances are borrowings denominated in non-U.S. dollars, principally: euro ($3.5 billion), Japanese yen ($1.3 billion) and Canadian dollars ($436.0 million).

Credit Facilities

We have a global senior credit facility (the “Global Facility”), under which we may draw in U.S. dollars, euro, Japanese yen, British pounds sterling and Canadian dollars on a revolving basis. In April 2016, we renewed and amended the Global Facility to increase our availability from $2.3 billion to $3.0 billion (subject to currency fluctuations). We have the ability to increase the Global Facility to $3.75 billion, subject to currency fluctuations and obtaining additional lender commitments. Pricing under the Global Facility, including the spread over LIBOR, facility fees and letter of credit fees, varies based on the public debt ratings of the Operating Partnership. The amended Global Facility is scheduled to mature in April 2020; however, we may extend the maturity date for six months on two occasions, subject to the satisfaction of certain conditions and payment of extension fees.

We also have a ¥45 billion ($438.0 million at June 30, 2016) Japanese yen revolver (the “Revolver”) with availability to increase to ¥56.5 billion, subject to obtaining additional lender commitments. Pricing under the Revolver, including the spread over LIBOR, facility fees and letter of credit fees, varies based on the public debt ratings of the Operating Partnership.

We refer to the Global Facility and the Revolver, collectively, as our “Credit Facilities.”

The following table summarizes information about our Credit Facilities at June 30, 2016 (in thousands):


Aggregate lender commitments	$	3,455,604
Less:
Borrowings outstanding		-
Outstanding letters of credit		38,534
Current availability	$	3,417,070

Term Loans

In March 2016, we entered into an unsecured senior term loan agreement (the “2016 Yen Term Loan”) under which we can draw in Japanese yen in an aggregate amount not to exceed ¥11.2 billion ($108.9 million at June 30, 2016). The 2016 Yen Term Loan bears interest at LIBOR plus 1.10% and is scheduled to mature in March 2017. In the first quarter of 2016, we borrowed ¥11.2 billion ($99.6 million), which caused the Yen Term Loan to be fully drawn at June 30, 2016.

Long-Term Debt Maturities

Principal payments due on our debt, for the remainder of 2016 and for each of the years in the period ending December 31, 2025, and thereafter were as follows at June 30, 2016 (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)	$	-	$	-		$	1		$	14		$	15		$	6		$	21
2017 (2)		-		-			522			8			530			514			1,044
2018		-		175			1			167			343			403			746
2019		-		618			1			319			938			143			1,081
2020		-		877			1			59			937			252			1,189
2021		-		1,277			399			14			1,690			128			1,818
2022		-		777			632			10			1,419			154			1,573
2023		-		850			288			33			1,171			142			1,313
2024		-		777			1			132			910			1			911
2025		-		750			1			139			890			1			891
Thereafter		-		555			7			-			562			2			564
Subtotal		-		6,656			1,854			895			9,405			1,746			11,151
Unamortized premiums (discounts), net		-		(22	)		-			11			(11	)		49			38
Unamortized debt issuance costs, net		-		(31	)		(9	)		(5	)		(45	)		(5	)		(50	)
Totals	$	-	$	6,603		$	1,845		$	901		$	9,349		$	1,790		$	11,139

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

(2)	Included in the 2017 maturities is a term loan that can be extended until 2019.

Exchangeable Senior Notes

During March 2015, the holders of exchangeable notes exchanged $459.8 million of their notes for 11.9 million shares of common stock of the Parent and $0.2 million of their notes for cash. When the debt was exchanged into common stock, the value of the derivative associated with the debt was reclassified to Additional Paid-In Capital. We recognized unrealized gains of $8.3 million during the first quarter of 2015 on the change in fair value of the derivative instrument associated with the exchangeable debt.

Debt Covenants

We have approximately $6.6 billion of senior notes and $1.8 billion of term loans outstanding at June 30, 2016 that were issued under three separate indentures, as supplemented, and are subject to certain financial covenants. We are also subject to financial covenants under our Credit Facilities and certain secured mortgage debt. At June 30, 2016, we were in compliance with all covenants.