v2.4.1.9
Debt (Tables)
 12 Months Ended
Dec. 31, 2014
Debt Disclosure [Abstract]  
Debt Summary

Our debt consisted of the following at December 31 (dollars in thousands):

 

     2014      2013  
      Weighted
Average Interest
Rate (1)		      Amount
Outstanding (2)		      Weighted
Average Interest
Rate (1)		      Amount
Outstanding		  

Credit facilities

      - %       $ -         1.2%       $ 725,483   

Senior notes (3)

      3.6%         6,076,920         4.5%         5,357,933   

Exchangeable senior notes

      3.3%         456,766         3.3%         438,481   

Secured mortgage debt (4)

      6.1%         1,050,591         5.6%         1,696,597   

Secured mortgage debt of consolidated entities (5)

      2.5%         1,207,106         4.7%         239,992   

Term loans

      1.3%         572,730         1.7%         535,908   

Other debt (6)

      6.2%         16,086         6.2%         16,822   
  

 

 

     

 

 

     

 

 

     

 

 

  

Totals

      3.6%       $ 9,380,199         4.2%       $ 9,011,216   

 

(1) The interest rates presented represent the effective interest rates (including amortization of the non-cash premiums or discount).

 

(2) Included in the outstanding balances are borrowings denominated in non-U.S. currency, principally: euro ($3.3 billion) and Japanese yen ($0.4 billion).

 

(3) Notes are due July 2017 to June 2026 and effective interest rates range from 1.4% to 7.6% at December 31, 2014.

 

(4) Debt is due July 2015 to April 2025 and effective interest rates range from 3.3% to 7.6% at December 31, 2014. The debt is secured by 196 real estate properties with an aggregate undepreciated cost of $2.6 billion at December 31, 2014.

 

(5) Debt is due July 2015 to December 2027 and effective interest rates range from 1.9% to 6.9% at December 31, 2014. The debt is secured by 171 real estate properties with an aggregate undepreciated cost of $2.0 billion at December 31, 2014.

 

(6) The balance at December 31, 2014, represents primarily assessment bonds with varying interest rates from 4.5% to 7.9% that are due December 2015 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 $784.2 million at December 31, 2014.
Credit Facilities

Information about our Credit Facilities at December 31 was as follows (in millions):

 

      2014      2013      2012  

For the years ended December 31:

         

Weighted average daily interest rate

      1.1 %         1.7 %         1.6 %   

Weighted average daily borrowings

    $ 182       $ 789       $ 815   

Maximum borrowings outstanding at any month-end

    $ 742       $ 1,325       $ 1,634   

At December 31:

         

Aggregate lender - commitments

    $ 2,742       $ 2,451       $ 2,118   

Less:

         

Borrowings outstanding

      -         726         889   

Outstanding letters of credit

      35         73         68   
  

 

 

     

 

 

     

 

 

  

Current availability

    $         2,707       $         1,652       $         1,161   

Schedule of Senior Notes

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

 

2014   

Principal

Amount

      Interest
Rate		      Effective
Interest Rate		      Maturity
Date		  

February 2014 (1)

    € 700,000       $ 959,420         3.375%         3.52%         February 2024   

June 2014 (1)

    € 500,000       $ 680,550         3.000%         3.10%         June 2026   

October 2014 (1)

    €     600,000       $     756,420         1.375%         1.40%         October 2020   

 

2013   

Principal

Amount

      Interest
Rate		      Effective
Interest Rate		      Maturity
Date		  

August 2013

       $     400,000         2.750%         2.76%         February 2019   

August 2013

       $ 850,000         4.250%         4.28%         August 2023   

November 2013

       $ 500,000         3.350%         3.35%         February 2021   

December 2013 (1)

    €     700,000       $ 950,500         3.000%         3.08%         January 2022   

 

(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.
Long-Term Debt Maturities

Principal payments due on our debt, for each year through the period ending December 31, 2024, and thereafter were as follows at December 31, 2014 (in millions):

 

    Prologis              
    Unsecured                              
Maturity  

Senior
Notes

     Exchangeable
Notes		     Credit
Facilities		    

Term Loans
and

Other Debt

    

Secured
Mortgage

Debt

     Total    

Consolidated
Entities’

Debt

    

Total
Consolidated

Debt

  

2015(1)

   $ -      $ 460      $ -      $ 1      $ 24      $ 485      $ 114      $ 599   

2016

     -        -        -        1        294        295        446        741   

2017

     377        -        -        232        156        765        206        971   

2018

     262        -        -        1        111        374        166        540   

2019

     693        -        -        1        285        979        1        980   

2020

     1,096        -        -        1        6        1,103        189        1,292   

2021

     500        -        -        342        11        853        1        854   

2022

     850        -        -        1        7        858        1        859   

2023

     850        -        -        1        7        858        1        859   

2024

     850        -        -        1        129        980        1        981   

Thereafter

     607        -        -        7        -        614        3        617   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

     6,085        460        -        589        1,030        8,164        1,129        9,293   

Unamortized (discounts) premiums, net

     (8)        (3)        -        -        20        9        78        87   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 6,077      $ 457      $ -      $ 589      $ 1,050      $ 8,173      $ 1,207      $ 9,380   

 

(1) The Exchangeable Notes are due on March 15, 2015. We will settle the exchanges in all cash, all stock or a combination of both pursuant to the applicable indenture.
Interest Expense

Interest expense from continuing operations included the following components for the years ended December 31 (in thousands):

 

      2014      2013      2012  

Gross interest expense

    $ 377,666       $ 471,923       $ 578,518   

Amortization of premium, net

      (21,440)         (39,015)         (36,687)   

Amortization of deferred loan costs

      14,116         14,374         16,781   
  

 

 

     

 

 

     

 

 

  

Interest expense before capitalization

      370,342         447,282         558,612   

Capitalized amounts

      (61,457)         (67,955)         (53,397)   
  

 

 

     

 

 

     

 

 

  

Net interest expense

    $ 308,885       $ 379,327       $ 505,215   
  

 

 

     

 

 

     

 

 

  

Total cash paid for interest, net of amounts capitalized

    $         258,441       $         426,528       $         546,627   
Activity Related to Repurchase of Debt and Net Loss on Early Extinguishment of Debt

A summary of the activity related to the repurchase of debt and net loss on early extinguishment of debt is as follows (in millions):

 

      2014      2013  

Repurchase of senior notes

    $         1,290       $         2,142   

Repurchase of secured mortgage debt

    $ 528       $ 1,571   

Loss on early extinguishment of debt

    $ 165       $ 277