Notes Payable (Notes Payable)

9 Months Ended

Sep. 30, 2013

Notes Payable

Debt instrument

Notes Payable

9.     Notes Payable

A.  General

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

	September 30,		December 31,
	2013		2012
5.375% notes, issued in March 2003 and repaid in March 2013	$	-	$	100
5.5% notes, issued in November 2003 and due in November 2015	150		150
5.95% notes, issued in September 2006 and due in September 2016	275		275
5.375% notes, issued in September 2005 and due in September 2017	175		175
2.0% notes, issued in October 2012 and due in January 2018	350		350
6.75% notes, issued in September 2007 and due in August 2019	550		550
5.75% notes, issued in June 2010 and due in January 2021	250		250
3.25% notes, issued in October 2012 and due in October 2022	450		450
4.65% notes, issued in July 2013 and due in August 2023	750		-
5.875% bonds, $100 issued in March 2005 and $150 issued in
June 2011, both due in March 2035	250		250
	$	3,200	$	2,550

As of September 30, 2013, the weighted average interest rate of our notes and bonds payable was 4.9% and the weighted average remaining years until maturity was 7.9 years.

B. Note Repayment

In March 2013, we repaid the $100 million of outstanding 5.375% notes, plus accrued and unpaid interest, using proceeds from our March 2013 common stock offering and our credit facility.

C. Note Issuance

In July 2013, we issued $750 million of 4.65% senior unsecured notes due August 2023, or the 2023 Notes.  The price to the investors for the 2023 Notes was 99.775% of the principal amount for an effective yield of 4.678% per annum.  The total net proceeds of approximately $741.4 million from these offerings were used to repay all outstanding borrowings under our acquisition credit facility, and the remaining proceeds were used for other general corporate purposes and working capital, including additional property acquisitions.  Interest is paid semiannually on the 2023 Notes.