NOTE 5. 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):

	March 31, 2017					December 31, 2016
	Weighted Average Interest Rate (1)			Amount Outstanding (2)		Weighted Average Interest Rate (1)			Amount Outstanding
Credit facilities		-		$	-		1.0	%	$	35,023
Senior notes		3.3	%		6,471,112		3.3	%		6,417,492
Term loans		1.4	%		1,825,796		1.4	%		1,484,523
Unsecured other		6.1	%		14,604		6.1	%		14,478
Secured mortgages (3)		4.1	%		1,945,201		4.9	%		979,585
Secured mortgages of consolidated entities (3)		2.7	%		710,219		3.0	%		1,677,193
Totals		3.1	%	$	10,966,932		3.2	%	$	10,608,294

(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 the debt outstanding.

(2)	Included in the outstanding balances are borrowings denominated in non-U.S. dollars, principally: euro ($3.4 billion), Japanese yen ($1.4 billion), Canadian dollars ($0.4 billion) and British pounds sterling ($37.5 million).

(3)	As discussed in Note 6, we acquired all of our partner’s interest in Prologis North American Industrial Fund, therefore, the related secured mortgage debt of $958.9 million is now wholly-owned and reported as secured mortgages.

Credit Facilities

We have a global senior credit facility (the “Global Facility”), under which we may draw in British pounds sterling, Canadian dollars, euro, Japanese yen and U.S. dollars on a revolving basis up to $3.0 billion (subject to currency fluctuations). We have the ability to increase the Global Facility to $3.8 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 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 Japanese yen revolver (the “Revolver”). In February 2017, we renewed and amended the Revolver to increase our availability from ¥45.0 billion to ¥50.0 billion ($447.1 million at March 31, 2017). We have the ability to increase the Revolver to ¥65.0 billion ($581.3 million at March 31, 2017), 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. The Revolver is scheduled to mature in February 2021; however, we may extend the maturity date for one year, subject to the satisfaction of certain conditions and payment of extension fees.

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

The following table summarizes information about our Credit Facilities at March 31, 2017 (in millions):

Aggregate lender commitments	$	3,398
Less:
Borrowings outstanding		-
Outstanding letters of credit		36
Current availability	$	3,362

Term Loans

In March 2017, we entered into an unsecured senior term loan agreement (the “2017 Yen Term Loan”) under which we can draw in Japanese yen, of which ¥7.2 billion ($64.4 million at March 31, 2017) matures in March 2027 and bears interest of 0.92% and ¥4.8 billion ($42.9 million at March 31, 2017) matures in March 2028 and bears interest of 1.01%. In the first quarter of 2017, we borrowed ¥12.0 billion ($107.3 million), causing the 2017 Yen Term Loan to be fully drawn at March 31, 2017.

Long-Term Debt Maturities

Principal payments due on our debt, for the remainder of 2017 and for each of the years in the period ending December 31, 2026, and thereafter were as follows at March 31, 2017 (in thousands):

	Unsecured
	Senior			Term Loans			Secured
Maturity	Notes			and Other			Mortgage Debt			Total
2017 (1) (2)	$	-		$	378,334		$	424,476		$	802,810
2018		175,000			961			570,107			746,068
2019		618,294			1,084			446,360			1,065,738
2020		844,077			1,190			436,736			1,282,003
2021		1,248,370			1,012			141,573			1,390,955
2022		748,370			447,914			163,197			1,359,481
2023		850,000			905,517			174,416			1,929,933
2024		748,370			911			133,333			882,614
2025		750,000			976			135,895			886,871
2026		534,550			696			1,223			536,469
Thereafter		-			112,679			1,161			113,840
Subtotal		6,517,031			1,851,274			2,628,477			10,996,782
Premiums (discounts), net		(19,003	)		-			36,098			17,095
Debt issuance costs, net		(26,916	)		(10,874	)		(9,155	)		(46,945	)
Totals	$	6,471,112		$	1,840,400		$	2,655,420		$	10,966,932

(1)	We expect to repay the amounts maturing in 2017 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.

Debt Covenants

We have approximately $6.5 billion of senior notes and $1.8 billion of term loans outstanding at March 31, 2017, 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 March 31, 2017, we were in compliance with all financial covenants.