Notes Payable

12 Months Ended

Dec. 31, 2020

Notes Payable

A. General

Our senior unsecured notes and bonds consist of the following, sorted by maturity date (dollars in millions):


	December 31, 2020		December 31, 2019
5.750% notes, issued in June 2010 and due in January 2021	$	—	$	250
3.250% notes, $450 issued in October 2012 and $500 issued in December 2017, both due in October 2022 (1)	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 in April 2018 and due in April 2025	500		500
0.750% notes, issued December 2020 and due in March 2026	325		—
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		500
1.625% notes, issued in October 2020 and due December 2030 (2)	547		—
3.250% notes, $600 issued in May 2020 and $350 issued in July 2020, both due in January 2031	950		—
1.800% notes, issued in December 2020 and due in March 2033	400		—
2.730% notes, issued in May 2019 and due in May 2034 (2)	431		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	8,303		6,318
Unamortized net original issuance premiums and deferred financing costs	(35)		(30)
	$	8,268	$	6,288

(1) In January 2021, we completed the early redemption of all $950.0 million in principal. See note 19, Subsequent Events.

(2) Represents the principal balance (in U.S. dollars) of the October 2020 Sterling-denominated note offering and May 2019 Sterling-denominated private placement of £400.0 million and £315.0 million, respectively, converted at the applicable exchange rate on December 31, 2020.

The following table summarizes the maturity of our notes and bonds payable as of December 31, 2020, excluding unamortized net original issuance premiums of $14.6 million and deferred financing costs of $49.2 million (dollars in millions):


Year of Maturity	Principal



2022 (1)	$	950

2023	750
2024	350
2025	500
Thereafter	5,753
Totals	$	8,303

(1) In January 2021, we completed the early redemption of all $950.0 million in principal. See note 19, Subsequent Events.

As of December 31, 2020, the weighted average interest rate on our notes and bonds payable was 3.4% and the weighted average remaining years until maturity was 8.2 years.

Interest incurred on all of the notes and bonds was $252.0 million for 2020, $233.5 million for 2019 and $213.8 million for 2018. 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. Additionally, with the exception of our £400.0 million of 1.625% senior unsecured

notes issued in October 2020, for which interest is paid annually, interest on our remaining senior unsecured 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, 2020, we were in compliance with these covenants.

B. Note Repayments

In January 2020, we repaid our $250.0 million of outstanding 5.75% notes, plus accrued and unpaid interest upon maturity. As a result of the early redemption, we recognized a $9.8 million loss on extinguishment of debt during the first quarter of 2020.

In January 2021, we completed the early redemption on all $950.0 million in principal amount of our outstanding 3.250% notes due October 2022. For further information, see note 19, Subsequent Events.

C. Note Issuances

During the three year period ended December 31, 2020 we issued the following notes and bonds (in millions):


2020 Issuances	Date of Issuance	Maturity date	Principal amount issued	Price of par value		Effective yield to maturity
3.250% notes (1)	May 2020	January 2031	$600	98.99	%	3.36%
3.250% notes (1)	July 2020	January 2031	$350	108.24	%	2.34%
1.625% notes	October 2020	December 2030	£400	99.19	%	1.71%
0.750% notes	December 2020	March 2026	$325	99.19	%	0.91%
1.800% notes	December 2020	March 2033	$400	98.47	%	1.94%


2019 Issuances
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 Issuance
3.875% notes	April 2018	April 2025	$500	99.50	%	3.96%

(1) In July 2020, we issued $350.0 million of 3.250% senior unsecured notes due January 2031 (the "2031 Notes"), which constituted a further issuance of, and formed a single series with, the $600.0 million of 2031 Notes issued in May 2020.

The net proceeds of $391.3 million from the December 2020 offering of 1.800% notes due 2033 and the net proceeds of $320.3 million from the December 2020 offering of 0.750% notes due 2026 were used, along with available cash and additional borrowings, as necessary to redeem in January 2021 all $950 million in aggregate principal amount of our outstanding 3.25% notes due 2022 at the applicable redemption price, plus accrued interest and, to the extent not used for those purposes, to fund investment opportunities and for other general corporate purposes.

The net proceeds from the October 2020 Sterling-denominated offering of £400.0 million approximated $508.2 million, as converted at the applicable exchange rate on the closing of the offering, and were used to repay GBP-denominated borrowings outstanding under our $3.0 billion revolving credit facility, to settle an outstanding GBP/USD currency exchange swap arrangement and, to the extent not used for those purposes, to fund investment opportunities and for other general corporate purposes.

The net proceeds of $376.6 million from the July 2020 note offering and the net proceeds of $590.0 million from the May 2020 note offering were used to repay borrowings under our credit facility, to fund potential investment opportunities and for other general corporate purposes.

The gross proceeds from the May 2019 Sterling-denominated private placement of £315.0 million approximated $400.9 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 $493.5 million from the June 2019 note offering and the net proceeds of approximately $494.4 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.