Senior Unsecured Notes and Secured Debt

12 Months Ended

Dec. 31, 2015

Senior Unsecured Notes and Secured Debt [Abstract]

10. Senior Unsecured Notes and Secured Debt

We may repurchase, redeem or refinance convertible and non-convertible senior unsecured notes from time to time, taking advantage of favorable market conditions when available. We may purchase senior notes for cash through open market purchases, privately negotiated transactions, a tender offer or, in some cases, through the early redemption of such securities pursuant to their terms. The non-convertible senior unsecured notes are redeemable at our option, at any time in whole or from time to time in part, at a redemption price equal to the sum of (1) the principal amount of the notes (or portion of such notes) being redeemed plus accrued and unpaid interest thereon up to the redemption date and (2) any “make-whole” amount due under the terms of the notes in connection with early redemptions. Redemptions and repurchases of debt, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. At December 31, 2015, the annual principal payments due on these debt obligations were as follows (in thousands):


	Senior		Secured
	Unsecured Notes^(1,2)		Debt ^(1,3)		Totals
2016	$	400,000	$	547,325	$	947,325
2017		450,000		476,661		926,661
2018		450,000		650,763		1,100,763
2019^(4,5)		1,280,649		380,588		1,661,237
2020⁽⁶⁾		666,779		173,833		840,612
Thereafter^(7,8,9)		5,398,330		1,249,037		6,647,367
Totals	$	8,645,758	$	3,478,207	$	12,123,965

(1) Amounts represent principal amounts due and do not include unamortized premiums/discounts, debt issuance costs, or other fair value adjustments as reflected on the consolidated balance sheet.
(2) Annual interest rates range from 1.4% to 6.5%.
(3) Annual interest rates range from 1.0% to 7.98%. Carrying value of the properties securing the debt totaled $6,285,511,000 at December 31, 2015.
(4) On July 25, 2014, we refinanced the funding on a $250,000,000 Canadian-denominated unsecured term credit facility (approximately $180,649,000 based on the Canadian/U.S. Dollar exchange rate on December 31, 2015). The loan matures on October 31, 2018 (with an option to extend for an additional year at our discretion) and bears interest at the Canadian Dealer Offered Rate plus 97.5 basis points (1.8% at December 31, 2015).
(5) On July 25, 2014, we refinanced the funding on a $500,000,000 unsecured term credit facility. The loan matures on October 31, 2018 (with an option to extend for one additional year at our discretion) and bears interest at LIBOR plus 97.5 basis points (1.4% at December 31, 2015).
(6) In November 2015, one of our wholly-owned subsidiaries issued and we guaranteed $300,000,000 of Canadian-denominated 3.35% senior unsecured notes due 2020 (approximately $216,779,000 based on the Canadian/U.S. Dollar exchange rate on December 31, 2015).
(7) On November 20, 2013, we completed funding on £550,000,000 (approximately $811,030,000 based on the Sterling/U.S. Dollar exchange rate on December 31, 2015) of 4.8% senior unsecured notes due 2028.
(8) On November 25, 2014, we completed funding on £500,000,000 (approximately $737,300,000 based on the Sterling/U.S. Dollar exchange rate on December 31, 2015) of 4.5% senior unsecured notes due 2034.
(9) In May 2015, we issued $750,000,000 of 4.0% senior unsecured notes due 2025. In October 2015, we issued an additional $500,000,000 of these notes under a re-opening of the offer.

The following is a summary of our senior unsecured note principal activity during the periods presented (dollars in thousands):


	Year Ended
	December 31, 2015			December 31, 2014			December 31, 2013
			Weighted Avg.			Weighted Avg.			Weighted Avg.
	Amount		Interest Rate	Amount		Interest Rate	Amount		Interest Rate

Beginning balance	$	7,817,154	4.385%	$	7,421,707	4.395%	$	5,894,403	4.675%
Debt issued		1,475,540	3.901%		838,804	4.572%		2,036,930	3.824%
Debt assumed		24,621	6.000%		-	0.000%		-	0.000%
Debt extinguished		(300,000)	6.200%		(298,567)	5.855%		(300,000)	6.000%
Debt redeemed		(240,249)	3.303%		(59,143)	3.000%		(219,295)	3.000%
Foreign currency		(131,308)	3.966%		(85,647)	4.222%		9,669	3.993%
Ending balance	$	8,645,758	4.237%	$	7,817,154	4.385%	$	7,421,707	4.395%

During the twelve months ended December 31, 2010, we issued $494,403,000 of 3.00% senior unsecured convertible notes due December 2029. The notes are convertible, in certain circumstances, into cash and, if applicable, shares of common stock at an initial conversion rate of 19.5064 shares per $1,000 principal amount of notes, which represents an initial conversion price of $51.27 per share. In general, upon conversion, the holder of each note would receive, in respect of the conversion value of such note, cash up to the principal amount of such note and common stock for the note’s conversion value in excess of such principal amount. In addition, on each of December 1, 2019 and December 1, 2024, holders may require us to purchase all or a portion of their notes at a purchase price in cash equal to 100% of the principal amount of the notes to be purchased, plus any accrued and unpaid interest. The notes are bifurcated into a debt component and an equity component since they may be settled in cash upon conversion. The value of the debt component is based upon the estimated fair value of a similar debt instrument without the conversion feature at the time of issuance. The difference between the contractual principal on the debt and the value allocated to the debt of $29,925,000 was recorded as an equity component and represents the conversion feature of the instrument. The excess of the contractual principal amount of the debt over its estimated fair value is amortized to interest expense using the effective interest method over the period used to estimate the fair value. During the year ended December 31, 2015, we received notice of conversion from holders of $215,965,000 of the senior unsecured convertible notes, representing the remaining balance. These notes were converted into 366,211 shares of common stock and we recognized a loss on extinguishment of $5,881,000, which is reflected on the consolidated statement of comprehensive income.

The following is a summary of our secured debt principal activity for the periods presented (dollars in thousands):


	Year Ended
		December 31, 2015		December 31, 2014			December 31, 2013
			Weighted Avg.			Weighted Avg.			Weighted Avg.
	Amount		Interest Rate	Amount		Interest Rate	Amount		Interest Rate
Beginning balance	$	2,941,765	4.940%	$	3,010,711	5.095%	$	2,311,586	5.140%
Debt issued		228,685	2.776%		109,503	3.374%		89,208	4.982%
Debt assumed		1,007,482	3.334%		204,949	4.750%		1,290,858	4.159%
Debt extinguished		(506,326)	4.506%		(279,559)	4.824%		(614,375)	3.730%
Principal payments		(67,064)	4.801%		(62,280)	4.930%		(56,205)	5.248%
Foreign currency		(126,335)	3.834%		(41,559)	3.811%		(10,361)	4.013%
Ending balance	$	3,478,207	4.440%	$	2,941,765	4.940%	$	3,010,711	5.095%

Our debt agreements contain various covenants, restrictions and events of default. Certain agreements require us to maintain certain financial ratios and minimum net worth and impose certain limits on our ability to incur indebtedness, create liens and make investments or acquisitions. As of December 31, 2015, we were in compliance with all of the covenants under our debt agreements.