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Debt | 3 Months Ended
--- | ---
Mar. 31, 2021
Debt Disclosure [Abstract] |
Debt | NOTE 6. DEBT All debt is incurred by the OP or its consolidated subsidiaries. The following table summarizes our debt (dollars in thousands):
| March 31, 2021 |  |  | December 31, 2020 |
| Weighted Average |  |  | Amount |  |  | Weighted Average |  |  | Amount |
| Interest Rate (1) |  |  | Term (2) |  |  | Outstanding (3) |  |  | Interest Rate (1) |  |  | Term (2) |  |  | Outstanding (3) |
Credit facilities | 0.4% |  |  |  | 3.3 |  |  | $ | 53,250 |  |  | 0.8% |  |  |  | 2.0 |  |  | $ | 171,794 |
Senior notes | 1.7% |  |  |  | 12.1 |  |  |  | 14,433,868 |  |  | 2.0% |  |  |  | 11.2 |  |  |  | 14,275,870 |
Term loans and unsecured other | 0.9% |  |  |  | 5.3 |  |  |  | 1,670,556 |  |  | 0.9% |  |  |  | 5.6 |  |  |  | 1,764,311 |
Secured mortgage | 5.4% |  |  |  | 3.7 |  |  |  | 345,784 |  |  | 3.1% |  |  |  | 3.0 |  |  |  | 637,101 |
Total | 1.7% |  |  |  | 11.2 |  |  | $ | 16,503,458 |  |  | 1.9% |  |  |  | 10.2 |  |  | $ | 16,849,076 |
(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 and include the impact of designated interest rate swaps, which effectively fix the interest rate on certain variable rate debt.
(2) | The weighted average term represents the remaining maturity in years on the debt outstanding at period end.
(3) | We borrow in the functional currencies of the countries where we invest. Included in the outstanding balances were borrowings denominated in the following currencies:
|  |  | March 31, 2021 |  |  | December 31, 2020 |
|  |  | Weighted Average Interest Rate |  |  | Amount Outstanding |  |  | % of Total |  |  | Weighted Average Interest Rate |  |  | Amount Outstanding |  |  | % of Total |
| British pound sterling |  |  | 2.2 | % |  | $ | 1,027,910 |  |  |  | 6.2 | % |  |  | 2.2 | % |  | $ | 1,019,480 |  |  |  | 6.1 | %
| Canadian dollar |  |  | 2.7 | % |  |  | 288,045 |  |  |  | 1.7 | % |  |  | 2.7 | % |  |  | 285,708 |  |  |  | 1.7 | %
| Euro |  |  | 1.1 | % |  |  | 6,963,034 |  |  |  | 42.2 | % |  |  | 1.4 | % |  |  | 6,549,676 |  |  |  | 38.8 | %
| Japanese yen |  |  | 0.8 | % |  |  | 2,460,056 |  |  |  | 14.9 | % |  |  | 0.8 | % |  |  | 2,877,247 |  |  |  | 17.1 | %
| U.S. dollar |  |  | 2.6 | % |  |  | 5,764,413 |  |  |  | 35.0 | % |  |  | 2.8 | % |  |  | 6,116,965 |  |  |  | 36.3 | %
| Total |  |  | 1.7 | % |  | $ | 16,503,458 |  |  |  |  |  |  |  | 1.9 | % |  | $ | 16,849,076 |  |  |  |  |
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, Mexican pesos and U.S. dollars on a revolving basis up to $3.5 billion (subject to currency fluctuations). 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 OP. The Global Facility i s scheduled to mature in January 2023; howe ver, we may extend the maturit y date for six months on two occasions, subject to the satisfaction of certain conditions and payment of extension fees. We have the ability to increase the Global Facility to $4.5 billion, subject to currency fluctuations and obtaining additional lender commitments. We also have a Japanese yen revolver (the “Revolver”) with total commitments of ¥55.0 billion ($496.4 million at March 31, 2021). We have the ability to increase the borrowing capacity of the Revolver to ¥75.0 billion ($676.9 million at March 31, 2021), 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 OP. At March 31, 2021, the Revolver was scheduled to mature in July 2024; 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.” In April 2021, we entered into a second global senior credit facility under which we may draw in various currencies on a revolving basis in an aggregate amount up to $1.0 billion (subject to currency fluctuations). The second global senior credit facility is scheduled to mature in April 2024, subject to extension options. Liquidity The following table summarizes information about our available liquidity at March 31, 2021 (in millions):
Aggregate lender commitments |  |  |  |
Credit Facilities |  | $ | 4,019 |
Less: |  |  |  |
Borrowings outstanding |  |  | 53 |
Outstanding letters of credit |  |  | 19 |
Current availability |  | $ | 3,947 |
Available term loans |  |  | 250 |
Cash and cash equivalents |  |  | 676 |
Total liquidity |  | $ | 4,873 |
Senior Notes The following table summarizes the issuances and redemptions of senior notes during the three months ended March 31, 2021 (principal in thousands):
|  | Aggregate Principal |  |  | Issuance Date Weighted Average |  |  |
Initial Borrowing Date |  | Borrowing Currency |  |  | USD (1) |  |  | Interest Rate (2) |  |  | Term (3) |  |  | Maturity Dates
February |  | € | 1,350,000 |  |  | $ | 1,639,305 |  |  | 0.7% |  |  |  | 14.3 |  |  | February 2032 – 2041
February |  | $ | 400,000 |  |  | $ | 400,000 |  |  | 1.6% |  |  |  | 10.1 |  |  | March 2031
|  | Aggregate Principal |  |  | Redemption Date Weighted Average |  |  |
Redemption Date |  | Borrowing Currency |  |  | USD (1) |  |  | Interest Rate (2) |  |  | Term (3) |  |  | Maturity Dates
March |  | € | 599,514 |  |  | $ | 715,700 |  |  | 3.4% |  |  |  | 3.0 |  |  | February 2024
March |  | $ | 750,000 |  |  | $ | 750,000 |  |  | 3.8% |  |  |  | 4.7 |  |  | November 2025
(1) | The exchange rate used to calculate into U.S. dollars was the spot rate at the settlement date.
(2) | The interest rate represents the fixed or variable interest rate at the issuance or redemption date of the related debt.
(3) | The issuance date and redemption date weighted average term represent the remaining maturity in years on the related debt at the issuance or redemption date, respectively.
During the three months ended March 31, 2021, we used the net proceeds from the issuance of the senior notes to fund the senior note redemptions and for general corporate purposes. Early Extinguishment of Debt During the three months ended March 31, 2021 and 2020, we recognized $187.5 million and $42.8 million of losses on the early extinguishment of debt, respectively. The losses during both periods were driven by the redemption of certain high interest rate senior notes before their stated maturity. We redeemed $1.5 billion of senior notes with stated maturities of 2024 and 2025, and $783.1 million of senior notes with a stated maturity of 2021, during the three months ended March 31, 2021 and 2020, respectively. The losses in 2020 included the extinguishment of debt assumed in the Liberty Transaction and the IPT Transaction, which represented the excess of the prepayment penalties over the premium recorded upon assumption of the debt. Term Loans We did not borrow or pay down on the multi-currency term loan (“2017 Term Loan”) during the three months ended March 31, 2021. During the three months ended March 31, 2020, we borrowed a net $500.0 million. Long-Term Debt Maturities Scheduled principal payments due on our debt for the remainder of 2021 and for each year through the period ended December 31, 2025, and thereafter were as follows at March 31, 2021 (in thousands):
|  | Unsecured |  |  |  |  |  |  |
|  | Credit |  |  | Senior |  |  | Term Loans |  |  | Secured |  |  |  |  |
Maturity |  | Facilities |  |  | Notes |  |  | and Other |  |  | Mortgage |  |  | Total |
2021 (1)(2) |  | $ | - |  |  | $ | - |  |  | $ | 260,135 |  |  | $ | 21,355 |  |  | $ | 281,490 |
2022 (1) |  |  | - |  |  |  | 527,625 |  |  |  | - |  |  |  | 12,098 |  |  |  | 539,723 |
2023 |  |  | - |  |  |  | - |  |  |  | 135,244 |  |  |  | 34,072 |  |  |  | 169,316 |
2024 (3) |  |  | 53,250 |  |  |  | - |  |  |  | - |  |  |  | 133,488 |  |  |  | 186,738 |
2025 |  |  | - |  |  |  | 45,127 |  |  |  | - |  |  |  | 143,766 |  |  |  | 188,893 |
Thereafter |  |  | - |  |  |  | 13,931,343 |  |  |  | 1,281,618 |  |  |  | 2,468 |  |  |  | 15,215,429 |
Subtotal |  |  | 53,250 |  |  |  | 14,504,095 |  |  |  | 1,676,997 |  |  |  | 347,247 |  |  |  | 16,581,589 |
Premiums (discounts), net |  |  | - |  |  |  | 6,070 |  |  |  | - |  |  |  | 224 |  |  |  | 6,294 |
Debt issuance costs, net |  |  | - |  |  |  | (76,297 | ) |  |  | (6,441 | ) |  |  | (1,687 | ) |  |  | (84,425 | )
Total |  | $ | 53,250 |  |  | $ | 14,433,868 |  |  | $ | 1,670,556 |  |  | $ | 345,784 |  |  | $ | 16,503,458 |
(1) | We expect to repay the amounts maturing in the next twelve months with cash generated from operations, proceeds from dispositions of real estate properties, or as necessary, with borrowings on our Credit Facilities.
(2) | Included in the 2021 maturities is the 2017 Term Loan. In April 2021, the 2017 Term Loan was terminated and the interest rate swap contracts associated with the outstanding balance of $250.3 million were settled.
(3) | Included in the 2024 maturities is the Revolver that can be extended until 2025.
Financial Debt Covenants We had $14.4 billion of senior notes and $1.7 billion of term loans outstanding at March 31, 2021 that were subject to certain financial covenants under their related indentures. We are also subject to financial covenants under our Credit Facilities and certain secured mortgage debt. At March 31, 2021, we were in compliance with all of our financial debt covenants. Guarantee of Finance Subsidiary Debt We have finance subsidiaries as part of our operations in Europe (Prologis Euro Finance LLC), Japan (Prologis Yen Finance LLC) and the U.K. (Prologis Sterling Finance LLC) in order to mitigate our foreign currency risk by borrowing in the currencies in which we invest. These entities are 100% indirectly owned by the OP and all unsecured debt issued or to be issued by each entity is or will be fully and unconditionally guaranteed by the OP. There are no restrictions or limits on the OP’s ability to obtain funds from its subsidiaries by dividend or loan. In reliance on Rule 13-01 of Regulation S-X, the separate financial statements of Prologis Euro Finance LLC, Prologis Yen Finance LLC and Prologis Sterling Finance LLC are not provided.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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