Debt Facilities

Mortgage and Loans Payable

The Company’s mortgage and loans payable consisted of the following (in thousands):



	September 30, 2016			December 31, 2015
Term loans	$	1,069,965		$	456,740
Bridge term loan	468,350			386,547
Revolving credit facility borrowings	—			325,622
Brazil financings	1,585			27,113
Mortgage payable and other loans payable	49,514			47,677
	1,589,414			1,243,699
Less amount representing debt discount and debt issuance cost	(14,015		)	(2,681		)
Plus amount representing mortgage premium	2,004			1,987
	1,577,403			1,243,005
Less current portion	(518,985		)	(770,236		)
	$	1,058,418		$	472,769

On September 30, 2016, the Company entered into a five year term loan agreement ("Term Loan Commitment") with the BTMU for ¥47,500,000,000 or approximately $468,350,000 at the exchange rate in effect on September 30, 2016. Loans made under the term loan commitment must be repaid in equal quarterly installments of ¥625,000,000, with the remaining ¥35,625,000,000 to be repaid in full on October 29, 2021. Borrowings under the Term Loan Commitment bear interest at the Tokyo Interbank Offered Rate for Japanese Yen, plus a margin of 1.5% per annum. As of September 30, 2016, the Company had no borrowings outstanding under Term Loan Commitment.

In June 2016, the Company prepaid and terminated its 2012 and 2013 Brazil financings. In connection with this prepayment, the Company paid 90,652,000 Brazilian Reals including principal, accrued interest and termination fees, or approximately $28,298,000 at the exchange rate in effect as of June 30, 2016. The loss on debt extinguishment recognized in the condensed consolidated statements of operations was insignificant.

During the three months ended March 31, 2016, the Company repaid $325,622,000 of borrowings under its revolving credit facility. No borrowings were outstanding under the revolving credit facility as of September 30, 2016.

In February 2016, the Company borrowed the remaining ¥1,040,000,000, or approximately $10,254,000 at the exchange rate in effect on September 30, 2016, available under its Bridge Term Loan Agreement.

On January 15, 2016, the Company prepaid and terminated loans payable of TelecityGroup. In conjunction with the repayment of the loans payable, the Company incurred an insignificant amount of pre-payment penalties and interest rate swap termination costs, which were recorded as interest expense in the condensed consolidated statement of operations. See Note 3 for additional information.

On January 8, 2016, the Company borrowed the full amount of the $250,000,000 and £300,000,000 seven year term loan commitments made available to it under the second amendment to the Company's Senior Credit Facility. The $250,000,000 seven year term loan bears interest at 4.00% per annum and will be repaid in quarterly installments of $625,000 commencing on June 30, 2016 with the remaining $233,125,000 due on January 8, 2023. The £300,000,000 seven year term loan bears interest at 4.50% per annum and will be repaid in quarterly installments of £750,000 commencing on June 30, 2016 with the remaining £279,750,000 due on January 8, 2023. As of September 30, 2016, the Company had $248,750,000 and £298,500,000 outstanding term loan balances or a total of approximately $635,964,000 at the exchange rate in effect on September 30, 2016.

Convertible Debt

The Company’s convertible debt consisted of the following (in thousands):



	September 30, 2016		December 31, 2015
4.75% convertible subordinated notes	$	—	$	150,082
Less amount representing debt discount and debt issuance cost	—		(3,961		)
	$	—	$	146,121

4.75% Convertible Subordinated Notes

In April and June 2016, holders of the 4.75% convertible subordinated notes converted or redeemed a total of $150,082,000 of the principal amount of the notes for 1,981,662 shares of the Company’s common stock and $3,619,000 in cash, comprised of accrued interest, cash paid in lieu of fractional shares and principal redemption. In the Company’s consolidated statement of cash flows for the nine months ended September 30, 2016, the principal redemption and cash paid in lieu of issuing fractional shares to settle a portion of the principal amount were included within net cash provided by (used in) financing activities and the accrued interest paid was included within net cash provided by operating activities.

To minimize the impact of potential dilution upon conversion of the 4.75% convertible subordinated notes, the Company entered into capped call transactions (the “Capped Call”) separate from the issuance of the 4.75% convertible subordinated notes and paid a premium of $49,664,000 for the Capped Call in 2009. Upon maturity of the 4.75% convertible subordinated notes on June 15, 2016, the Company settled the capped call transaction and received 380,779 shares of common stock, which were placed in treasury and resulted in a credit of $141,688,000 to additional paid in capital at the market price of $372.10 on June 15, 2016.

Senior Notes

The Company’s senior notes consisted of the following as of (in thousands):



	September 30, 2016			December 31, 2015
5.375% Senior Notes due 2023	$	1,000,000		$	1,000,000
5.375% Senior Notes due 2022	750,000			750,000
4.875% Senior Notes due 2020	500,000			500,000
5.75% Senior Notes due 2025	500,000			500,000
5.875% Senior Notes due 2026	1,100,000			1,100,000
	3,850,000			3,850,000
Less amount representing debt issuance cost	(40,668		)	(45,366		)
	$	3,809,332		$	3,804,634

Maturities of Debt Facilities

The following table sets forth maturities of the Company’s debt, including mortgage and loans payable and senior notes and excluding debt discounts as of September 30, 2016 (in thousands):



Year ending:
2016 (3 months remaining)	$	481,048
2017	50,851
2018	50,945
2019	353,211
2020	510,024
Thereafter	3,995,339
	$	5,441,418

Fair Value of Debt Facilities

The following table sets forth the estimated fair values of the Company’s mortgage and loans payable, senior notes and convertible debt, including current maturities, as of (in thousands):



	September 30, 2016		December 31, 2015
Mortgage and loans payable	$	1,589,087	$	916,602
Convertible debt	—		151,997
Senior notes	4,088,117		3,954,000
Revolving credit line	—		325,617

The Company has determined that the inputs used to value its debt facilities fall within Level 2 of the fair value hierarchy.

Interest Charges

The following table sets forth total interest costs incurred and total interest costs capitalized for the periods presented (in thousands):



	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Interest expense	$	92,200	$	76,269	$	293,395	$	219,556
Interest capitalized	3,234		1,831		9,479		8,677
Interest charges incurred	$	95,434	$	78,100	$	302,874	$	228,233