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Debt Facilities | 12 Months Ended
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Dec. 31, 2020
Debt Disclosure [Abstract] |
Debt Facilities | Debt Facilities Mortgage and Loans Payable The Company's mortgage and loans payable consisted of the following as of December 31 (in thousands):
| 2020 |  | 2019
Term loans | $ | 1,292,067 |  |  | $ | 1,287,151 |
Mortgage payable and loans payable | 78,903 |  |  | 82,967 |
| 1,370,970 |  |  | 1,370,118 |
Less amount representing unamortized debt discount and debt issuance cost | (3,288) |  |  | (4,849) |
Add amount representing unamortized mortgage premium | 1,861 |  |  | 1,768 |
| 1,369,543 |  |  | 1,367,037 |
Less current portion | (82,289) |  |  | (77,603) |
| $ | 1,287,254 |  |  | $ | 1,289,434 |
Senior Credit Facility On December 12, 2017, the Company entered into a credit agreement with a group of lenders for a $3.0 billion credit facility ("Senior Credit Facility"), comprised of a $2.0 billion senior unsecured multicurrency revolving credit facility ("Revolving Facility") and an approximately $1.0 billion senior unsecured multicurrency term loan facility ("Term Loan Facility"). The Senior Credit Facility contains customary covenants, including financial covenants which require the Company to maintain certain financial coverage and leverage ratios, as well as customary events of default. The Senior Credit Facility has a five year term, maturing on December 12, 2022. Revolving Facility The Revolving Facility allows the Company to borrow, repay and reborrow over its term. The Revolving Facility provides a sublimit for the issuance of letters of credit of up to $250.0 million at any one time. Borrowings under the Revolving Facility bear interest at a rate based on a benchmark rate defined in the credit agreement plus a margin that can vary from 0.85% to 1.40% or, at the Company's option, the base rate, which is defined as the highest of (a) the Federal Funds Rate plus 0.5%, (b) the Bank of America prime rate and (c) one-month LIBOR plus 1% plus a margin that can vary from 0.0% to 0.4%. The Company is required to pay a quarterly letter of credit fee on the face amount of each letter of credit, which fee is based on the same margin that applies from time to time to borrowings under the Revolving Facility. The Company is also required to pay a quarterly facility fee ranging from 0.15% to 0.30% per annum based on the total Revolving Facility amount. In March 2020, the Company borrowed a total of $250.0 million under the Revolving Facility, which was fully repaid in May 2020. As of December 31, 2020, there was no outstanding balance under the Revolving Facility. As of December 31, 2020, the Company had 37 irrevocable letters of credit totaling $74.6 million issued and outstanding under the Revolving Facility and the amount available to the Company to borrow under the Revolving Facility was approximately $1.9 billion as of December 31, 2020. Term Loan Facility On December 12, 2017, the Company borrowed £500.0 million and SEK 2.8 billion under the Term Loan Facility, or approximately $997.1 million at the exchange rates in effect on that date. The Company is required to repay the Term Loan Facility at the rate of 5% of the original principal amount per annum with the remaining balance to be repaid in full at the maturity of the Senior Credit Facility. The Term Loan Facility bears interest at a rate based on LIBOR plus a margin that can vary from 1.00% to 1.70%. As of December 31, 2020, the Company had £431.3 million and SEK2,415.0 million, or approximately $883.6 million in U.S. dollars at the exchange rates in effect as of December 31, 2020, outstanding under the Term Loan Facility with a weighted average effective interest rate of 1.85% per annum. Debt issuance costs related to the Term Loan Facility, net of amortization, were $1.2 million as of December 31, 2020. On July 26, 2018, the Company entered into an amendment to its Senior Credit Facility. The amendment provided for a senior unsecured term loan in an aggregate principal amount of ¥47.5 billion (the "JPY Term Loan"). On July 31, 2018, the Company drew down the full ¥47.5 billion of the JPY Term Loan, or approximately $424.7 million at the exchange rate effective on July 31, 2018, and prepaid the remaining principal of its existing Japanese Yen Term Loan of ¥43.8 billion or approximately $391.3 million. The Company is required to repay the JPY Term Loan at the rate of 5% of the original principal amount per annum with the remaining balance to be repaid in full at the maturity of the Senior Credit Facility. The JPY Term Loan bears interest at a rate based on LIBOR plus a margin that can vary from 1.00% to 1.70% and contains customary covenants consistent with the Senior Credit Facility. As of December 31, 2020, total outstanding borrowings under the JPY Term Loan were ¥42.2 billion, or approximately $408.5 million at the exchange rate effective on that date, with an effective interest rate of 1.74%. Debt issuance costs, net of amortization, related to the JPY Term Loan were $2.1 million as of December 31, 2020. 364-Day Facilities On April 15, 2020, the Company entered into a credit agreement which provided for senior unsecured 364-day term loan facilities in an aggregate principal amount of $750.0 million, comprised of $500.0 million available to be borrowed on the closing date (the "Closing Date Facility") and $250.0 million available to be borrowed on or prior to July 14, 2020 (the "Delayed Draw Facility" and together with the Closing Date Facility, the "364-Day Facilities"). On April 15, 2020, the Company borrowed $391.0 million, as well as €100.0 million or $109.8 million at the exchange rate in effect on that date, under the Closing Date Facility. During the quarter ended June 30, 2020, the Company repaid all amounts outstanding under the Closing Date Facility and terminated the 364-Day Facilities. The loss on debt extinguishment incurred in connection with the redemption and termination was not significant. Mortgage Payable In October 2013, as a result of the Frankfurt Kleyer 90 Carrier Hotel Acquisition, the Company assumed a mortgage payable of $42.9 million with an effective interest rate of 4.25%. The mortgage payable has monthly principal and interest payments and has an expiration date of August 2022. In December 2019, as a result of the TR2 Data Center purchase, the Company assumed a mortgage payable of $43.8 million with an effective interest rate of 3.63%. The mortgage payable has monthly principal and interest payments and has an expiration date of November 2029. Senior Notes The Company's senior notes consisted of the following as of December 31 (in thousands):
|  |  |  |  |  | 2020 |  | 2019
Senior Notes |  | Issuance Date |  | Maturity Date |  | Amount |  | Effective Rate |  | Amount |  | Effective Rate
5.000% Infomart Senior Notes |  | April 2018 |  | April 2021 |  | $ | 150,000 |  |  | 4.51 | % |  | $ | 450,000 |  |  | 4.46 | %
5.375% Senior Notes due 2022 |  | November 2014 |  | January 2022 |  | — |  |  | — | % |  | 343,711 |  |  | 5.56 | %
2.625% Senior Notes due 2024 |  | November 2019 |  | November 2024 |  | 1,000,000 |  |  | 2.79 | % |  | 1,000,000 |  |  | 2.79 | %
2.875% Euro Senior Notes due 2024 |  | March 2018 |  | March 2024 |  | — |  |  | — | % |  | 841,500 |  |  | 3.08 | %
1.250% Senior Notes due 2025 |  | June 2020 |  | July 2025 |  | 500,000 |  |  | 1.46 | % |  | — |  |  | — | %
1.000% Senior Notes due 2025 |  | October 2020 |  | September 2025 |  | 700,000 |  |  | 1.18 | % |  | — |  |  | — | %
2.875% Euro Senior Notes due 2025 |  | September 2017 |  | October 2025 |  | — |  |  | — | % |  | 1,122,000 |  |  | 3.04 | %
2.900% Senior Notes due 2026 |  | November 2019 |  | November 2026 |  | 600,000 |  |  | 3.04 | % |  | 600,000 |  |  | 3.04 | %
5.875% Senior Notes due 2026 |  | December 2015 |  | January 2026 |  | — |  |  | — | % |  | 1,100,000 |  |  | 6.03 | %
2.875% Euro Senior Notes due 2026 |  | December 2017 |  | February 2026 |  | 611,050 |  |  | 3.04 | % |  | 1,122,000 |  |  | 3.04 | %
1.800% Senior Notes due 2027 |  | June 2020 |  | July 2027 |  | 500,000 |  |  | 1.96 | % |  | — |  |  | — | %
5.375% Senior Notes due 2027 |  | March 2017 |  | May 2027 |  | 1,250,000 |  |  | 5.51 | % |  | 1,250,000 |  |  | 5.51 | %
1.550% Senior Notes due 2028 |  | October 2020 |  | March 2028 |  | 650,000 |  |  | 1.67 | % |  | — |  |  | — | %
3.200% Senior Notes due 2029 |  | November 2019 |  | November 2029 |  | 1,200,000 |  |  | 3.30 | % |  | 1,200,000 |  |  | 3.30 | %
2.150% Senior Notes due 2030 |  | June 2020 |  | July 2030 |  | 1,100,000 |  |  | 2.27 | % |  | — |  |  | — | %
3.000% Senior Notes due 2050 |  | June 2020 |  | July 2050 |  | 500,000 |  |  | 3.09 | % |  | — |  |  | — | %
2.950% Senior Notes due 2051 |  | October 2020 |  | September 2051 |  | 500,000 |  |  | 3.00 | % |  | — |  |  | — | %
|  |  |  |  |  | 9,261,050 |  |  |  |  | 9,029,211 |  |  |
Less amount representing unamortized debt discount and debt issuance cost |  | (92,773) |  |  |  |  | (78,030) |  |  |
Add amount representing unamortized debt premium |  |  |  | 186 |  |  |  |  | 1,716 |  |  |
|  |  |  |  |  | 9,168,463 |  |  |  |  | 8,952,897 |  |  |
Less current portion |  |  |  |  |  | (150,186) |  |  |  |  | (643,224) |  |  |
|  |  |  |  |  | $ | 9,018,277 |  |  |  |  | $ | 8,309,673 |  |  |
Redemption of 5.375% Senior Notes due 2022 On January 2, 2020, the Company redeemed the remaining $343.7 million principal amount of the 5.375% Senior Notes due 2022. In connection with the redemption, the Company incurred $5.9 million of loss on debt extinguishment, including $4.6 million redemption premium that was paid in cash and $1.3 million related to the write-off of unamortized debt issuance costs. 1.250% Senior Notes due 2025, 1.800% Senior Notes due 2027, 2.150% Senior Notes due 2030, and 3.000% Senior Notes due 2050 On June 22, 2020, the Company issued $500.0 million aggregate principal amount of 1.250% senior notes due 2025 (the "2025 Notes"), $500.0 million aggregate principal amount of 1.800% senior notes due 2027 (the "2027 Notes"), $1.1 billion aggregate principal amount of 2.150% senior notes due 2030 (the "2030 Notes"), and $500.0 million aggregate principal amount of 3.000% senior notes due 2050 (the "2050 Notes"). Interest on these notes is payable semi-annually on January 15 and July 15 of each year, commencing on January 15, 2021. Debt issuance costs and debt discounts related to the 2025 Notes, 2027 Notes, 2030 Notes, and 2050 Notes were $5.3 million, $5.6 million, $12.9 million, and $14.2 million, respectively. Redemption of 2.875% Euro Senior Notes due 2024 and 5.875% Senior Notes due 2026 On July 8, 2020, using a portion of the net cash proceeds from the 2025, 2027, 2030, and 2050 Notes, the Company redeemed all of the outstanding €750.0 million 2.875% Senior Notes due 2024 and $1.1 billion 5.875% Senior Notes due 2026. In connection with the redemption, the Company incurred $93.5 million of loss on debt extinguishment, including $77.8 million in redemption premium that was paid in cash and $15.7 million related to the write-off of unamortized debt issuance costs. 1.000% Senior Notes due 2025, 1.550% Senior Notes due 2028, and 2.950% Senior Notes due 2051 On October 7, 2020, the Company issued $700.0 million aggregate principal amount of 1.000% Senior Notes due 2025 (the “2025 Notes”), $650.0 million aggregate principal amount of 1.550% Senior Notes due 2028 (the “2028 Notes"), and $500.0 million aggregate principal amount of 2.950% Senior Notes due 2051 (the “2051 Notes”). Interest on these notes is payable semi-annually on March 15 and September 15 of each year, commencing March 15, 2021. Debt issuance costs and debt discounts related to the 2025 Notes, 2028 Notes, and 2051 Notes were $6.2 million, $5.8 million, and $8.1 million, respectively. Redemption of 2.875% Senior Notes due 2025 and 2.875% Senior Notes due 2026 On October 23, 2020, the Company used a portion of the net cash proceeds from the issuance of the 2025, 2028, and 2051 Notes, as described above, to fund the redemption of all of the outstanding €1.0 billion 2.875% Senior Notes due 2025 and €0.5 billion aggregate principal amount of its outstanding €1.0 billion aggregate principal amount 2.875% Senior Notes due 2026. In connection with the redemption, the Company incurred $44.2 million of loss on debt extinguishment, including $29.3 million in redemption premium that was paid in cash and $14.9 million related to the write-off of unamortized debt issuance costs. All of the Company's senior notes are unsecured and rank equal in right of payment to the Company's existing or future senior indebtedness and senior in right of payment to the Company's existing and future subordinated indebtedness. Interest on the senior notes is paid semi-annually in arrears. The senior notes are effectively subordinated to all of the existing and future secured debt, including debt outstanding under any bank facility or secured by any mortgage, to the extent of the assets securing such debt. They are also structurally subordinated to any existing and future indebtedness and other liabilities (including trade payables) of any of the Company's subsidiaries. Each series of senior notes is governed by an indenture and a supplemental indenture between the Company and U.S. Bank National Association, as trustee. These supplemental indentures contain covenants that limit the Company's ability and the ability of its subsidiaries to, among other things: •purchase, redeem or retire capital stock or subordinated debt(1); •incur liens; •enter into sale-leaseback transactions (1); •make investments(1); and •merge or consolidate with any other person.
(1) The supplemental indentures for the 2.875% Euro Senior Notes due 2026 and the 5.375% due 2027 contain these covenants. As of December 31, 2020, the Company was in compliance with all covenants. Subject to compliance with the limitations described above, the Company may issue an unlimited principal amount of additional notes at later dates under the same indenture as the senior notes. The Company is not required to make any mandatory redemption with respect to the senior notes; however, upon the event of a change in control, the Company may be required to offer to purchase the senior notes. Optional Redemption Schedule Each series of the Company's senior notes, with the exception of 5.000% Infomart Senior Notes, provide for optional redemption. Two series of the Company’s senior notes provide for optional redemption as summarized below:
Senior Notes Description | Early Equity Redemption Price (1) | First Scheduled Redemption Date (2) | First Scheduled Redemption Price | Second Year Redemption Price | Third Year Redemption Price | Fourth Year (if scheduled) Redemption Price
2.875% Euro Senior Notes due 2026 | 102.875% | February 1, 2021 | 101.438% | 100.719% | 100.000% |
5.375% Senior Notes due 2027 | 105.375% | May 15, 2022 | 102.688% | 101.792% | 100.896% | 100.000%
(1)Within 90 days of the closing of one or more equity offerings and at any time prior to the first scheduled redemption date, the Company may redeem up to 35% of the aggregate principal amount of any series of senior notes outstanding, at the respective early equity redemption price, plus accrued and unpaid interest to the redemption date, provided that at least 65% of the aggregate principal amount of the senior notes issued in such series remains outstanding immediately after such redemption(s). (2)On or after the first scheduled redemption date, the Company may redeem all or a part of a series of senior notes at the first scheduled redemption price plus accrued and unpaid interest thereon, if redeemed during the 12 month period beginning on the first scheduled redemption date and at reduced scheduled redemption prices during the 12 or 18 month periods beginning on the anniversaries of the first scheduled redemption date. At any time prior to the first scheduled redemption date, the Company may redeem all or a part of any series of senior notes at a redemption price equal to 100% of the principal amount of such senior notes redeemed plus an applicable premium and accrued and unpaid interest, subject to the rights of the holders of record of such senior notes on the relevant record date to receive interest due on the relevant interest payment date. With respect to the rest of the Notes listed below, the Company may redeem at its election, at any time or from time to time, some or all of the notes of any series before they mature. The redemption price will equal the sum of (1) an amount equal to one hundred percent (100%) of the principal amount of the notes being redeemed plus accrued and unpaid interest up to, but not including, the redemption date and (2) a make-whole premium. If the Notes are redeemed on or after the First Par Call Date listed in the table below, the redemption price will not include a make-whole premium for the applicable notes.
Senior Notes Description | First Par Call Date |  |
2.625% Senior Notes due 2024 | October 18, 2024 |  |
1.000% Senior Notes due 2025 | August 15, 2025 |  |
1.250% Senior Notes due 2025 | June 15, 2025 |  |
2.900% Senior Notes due 2026 | September 18, 2026 |  |
1.800% Senior Notes due 2027 | May 15, 2027 |  |
1.550% Senior Notes due 2028 | January 15, 2028 |  |
3.200% Senior Notes due 2029 | August 18, 2029 |  |
2.150% Senior Notes due 2030 | April 15, 2030 |  |
3.000% Senior Notes due 2050 | January 15, 2050 |  |
2.950% Senior Notes due 2051 | March 15, 2051 |  |
Loss on Debt Extinguishment During the year ended December 31, 2020, the Company recorded $145.8 million of loss on debt extinguishment primarily comprised of: •$5.9 million of loss on debt extinguishment from the redemption of the 2022 Notes, which included $4.6 million redemption premium that was paid in cash and $1.3 million related to the write-off of unamortized debt issuance costs. •$93.5 million of loss on debt extinguishment from the redemption of the 2024 and 2026 Notes, which included $77.8 million redemption premium that was paid in cash and $15.7 million related to the write-off of unamortized debt issuance costs. •$44.2 million of loss on debt extinguishment from the redemption of the 2025 and 2026 Notes, which included $29.3 million redemption premium that was paid in cash and $14.9 million related to the write-off of unamortized debt issuance costs. During the year ended December 31, 2019, the Company recorded $52.8 million of loss on debt extinguishment primarily comprised of: •$52.9 million of loss on debt extinguishment from the tender and subsequent redemption of the 2022, 2023 and 2025 Notes, which included $43.3 million tender and redemption premium that was paid in cash and $9.6 million related to the write-off of unamortized debt issuance costs. During the year ended December 31, 2018, the Company recorded $51.4 million of loss on debt extinguishment comprised of: •$17.1 million of loss on debt extinguishment as a result of amendments to leases impacting the related financing obligations; •$19.5 million of loss on debt extinguishment from the settlement of financing obligations as a result of the Infomart Dallas Acquisition; •$12.6 million of loss on debt extinguishment as a result of the settlement of financing obligations for properties purchased; and •$2.2 million of loss on debt extinguishment as a result of the redemption of the Japanese Yen Term Loan. Maturities of Debt Instruments The following table sets forth maturities of the Company's debt, including mortgage and loans payable, and senior notes, gross of debt issuance costs, debt discounts and debt premiums, as of December 31, 2020 (in thousands):
Years ending: |
2021 | $ | 232,289 |
2022 | 1,253,106 |
2023 | 6,896 |
2024 | 1,006,395 |
2025 | 1,204,605 |
Thereafter | 6,930,590 |
| $ | 10,633,881 |
Fair Value of Debt Instruments The following table sets forth the estimated fair values of the Company's mortgage and loans payable and senior notes, including current maturities, as of December 31 (in thousands):
| 2020 |  | 2019
Mortgage and loans payable | $ | 1,379,129 |  |  | $ | 1,378,429 |
Senior notes | 9,705,486 |  |  | 9,339,497 |
The fair values of the mortgage and loans payable and 5.000% Infomart Senior Notes, which are not publicly traded, were estimated by considering the Company's credit rating, current rates available to the Company for debt of the same remaining maturities and terms of the debt (Level 2). The fair value of the senior notes, which are traded in the public debt market, was based on quoted market prices (Level 1). Interest Charges The following table sets forth total interest costs incurred and total interest costs capitalized for the years ended December 31 (in thousands):
| 2020 |  | 2019 |  | 2018
Interest expense | $ | 406,466 |  |  | $ | 479,684 |  |  | $ | 521,494 |
Interest capitalized | 26,750 |  |  | 32,173 |  |  | 19,880 |
Interest charges incurred | $ | 433,216 |  |  | $ | 511,857 |  |  | $ | 541,374 |
Total interest paid in cash, net of capitalized interest, during the years ended December 31, 2020, 2019 and 2018 was $471.7 million, $521.6 million and $476.9 million, respectively.

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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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