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v3.19.3.a.u2

Notes Payable | 12 Months Ended
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Dec. 31, 2019
Notes Payable |
Debt |
Debt | Notes Payable A. General Our senior unsecured notes and bonds consist of the following, sorted by maturity date (dollars in millions):
|  | December 31, 2019 |  |  | December 31, 2018 |
5.750% notes, issued in June 2010 and due in January 2021 |  | $ | 250 |  |  | $ | 250 |
3.250% notes, $450 issued in October 2012 and $500 issued in December 2017, both due in October 2022 |  | 950 |  |  | 950 |
4.650% notes, issued in July 2013 and due in August 2023 |  | 750 |  |  | 750 |
3.875% notes, issued in June 2014 and due in July 2024 |  | 350 |  |  | 350 |
3.875% notes, issued April 2018 and due in April 2025 |  | 500 |  |  | 500 |
4.125% notes, $250 issued in September 2014 and $400 issued in March 2017, both due in October 2026 |  | 650 |  |  | 650 |
3.000% notes, issued in October 2016 and due in January 2027 |  | 600 |  |  | 600 |
3.650% notes, issued in December 2017 and due in January 2028 |  | 550 |  |  | 550 |
3.250% notes, issued in June 2019 and due in June 2029 |  | 500 |  |  | — |
2.730% notes, issued in May 2019 and due in May 2034 (1) |  | 418 |  |  | — |
5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, both due in March 2035 |  | 250 |  |  | 250 |
4.650% notes, $300 issued in March 2017 and $250 issued in December 2017, both due in March 2047 |  | 550 |  |  | 550 |
Total principal amount |  | 6,318 |  |  | 5,400 |
Unamortized net original issuance premiums and deferred financing costs |  | (30 | ) |  | (23 | )
|  | $ | 6,288 |  |  | $ | 5,377 |
(1) Represents the principal balance (in U.S. dollars) of the Sterling-denominated private placement of £315.0 million Sterling based on the applicable exchange rate on December 31, 2019. The following table summarizes the maturity of our notes and bonds payable as of December 31, 2019, excluding unamortized net original issuance premiums and deferred financing costs (dollars in millions):
Year of Maturity |  | Principal |
2021 |  | $ | 250 |
2022 |  | 950 |
2023 |  | 750 |
2024 |  | 350 |
Thereafter |  | 4,018 |
Totals |  | $ | 6,318 |
As of December 31, 2019, the weighted average interest rate on our notes and bonds payable was 3.9% and the weighted average remaining years until maturity was 8.3 years. Interest incurred on all of the notes and bonds was $233.5 million for 2019, $213.8 million for 2018 and $197.1 million for 2017. The interest rate on each of these notes and bonds is fixed. Our outstanding notes and bonds are unsecured; accordingly, we have not pledged any assets as collateral for these or any other obligations. Interest on all of the senior note and bond obligations is paid semiannually. All of these notes and bonds contain various covenants, including: (i) a limitation on incurrence of any debt which would cause our debt to total adjusted assets ratio to exceed 60%; (ii) a limitation on incurrence of any secured debt which would cause our secured debt to total adjusted assets ratio to exceed 40%; (iii) a limitation on incurrence of any debt which would cause our debt service coverage ratio to be less than 1.5 times; and (iv) the maintenance at all times of total unencumbered assets not less than 150% of our outstanding unsecured debt. At December 31, 2019, we were in compliance with these covenants. B. Note Issuances During the three year period ended December 31, 2019 we issued the following notes and bonds (in millions):
2019 Issuances |  | Date of Issuance |  | Maturity date |  | Principal amount issued |  | Price of par value |  | Effective yield to maturity
2.730% notes |  | May 2019 |  | May 2034 |  | £315 |  | 100.00 | % |  | 2.73%
3.250% notes |  | June 2019 |  | June 2029 |  | $500 |  | 99.36 | % |  | 3.33%
2018 Issuances |  |  |  |  |  |  |  |  |  |
3.875% notes |  | April 2018 |  | April 2025 |  | $500 |  | 99.50 | % |  | 3.96%
2017 Issuances |  |  |  |  |  |  |  |  |  |
4.125% notes |  | March 2017 |  | October 2026 (1) |  | $400 |  | 102.98 | % |  | 3.75%
4.650% notes |  | March 2017 |  | March 2047 |  | $300 |  | 99.97 | % |  | 4.65%
3.250% notes |  | December 2017 |  | October 2022 (2) |  | $500 |  | 101.77 | % |  | 2.84%
3.650% notes |  | December 2017 |  | January 2028 |  | $550 |  | 99.78 | % |  | 3.68%
4.650% notes |  | December 2017 |  | March 2047 (3) |  | $250 |  | 105.43 | % |  | 4.32%
(1) This issuance constituted a further issuance of, and formed a single series with the senior notes due 2026 issued in September 2014. (2) This issuance constituted a further issuance of, and formed a single series with the senior notes due 2022 issued in October 2012. (3) This issuance constituted a further issuance of, and formed a single series with the senior notes due 2047 issued in March 2017. The net proceeds from the May 2019 Sterling-denominated private placement of £315.0 million approximated $398.1 million, as converted at the applicable exchange rate on the closing of the offering, and were used to fund our initial investment in U.K. properties. The net proceeds of $492.2 million from the June 2019 note offering and the net proceeds of approximately $493.1 million from the April 2018 note offering were used to repay borrowings outstanding under our credit facility, to fund investment opportunities, and for other general corporate purposes. The net proceeds of $1.3 billion from the December 2017 note offerings were used to redeem all $550.0 million aggregate principal amount of our outstanding 2019 notes, including accrued and unpaid interest, and to repay borrowings outstanding under our revolving credit facility and, to the extent not used for those purposes, to fund the development and acquisitions of additional properties and for other general corporate purposes. The net proceeds of $705.2 million from the March 2017 note offerings were used to repay borrowings outstanding under our credit facility, to fund investment opportunities and for other general corporate purposes. C. Note Repayment In January 2018, we repaid our $350.0 million of outstanding 2.000% notes, plus accrued and unpaid interest upon maturity. In December 2017, we completed the early redemption on all $550.0 million of outstanding 6.75% notes due August 2019, plus accrued and unpaid interest. As a result of the early redemption, we recognized a $42.4 million loss on extinguishment of debt, represents a $0.15 dilution of net income per common share for the year ended December 31, 2017. In September 2017, we repaid our $175.0 million of outstanding 5.375% notes, plus accrued and unpaid interest upon maturity.

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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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