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Debt | 12 Months Ended
--- | ---
Dec. 31, 2016
Debt Disclosure [Abstract] |
Debt | DEBT Long-Term Debt The Company’s long-term debt consists of the following as of December 31, 2016 and 2015 (dollars in thousands):
|  | 2016 |  | 2015
$300 million 5.625% Senior Notes due 2017 |  | $ | 299,945 |  |  | $ | 299,671 |
$400 million 6.45% Senior Notes due 2019 |  | 399,805 |  |  | 399,737 |
$400 million 5.00% Senior Notes due 2021 |  | 399,025 |  |  | 398,803 |
$400 million 4.70% Senior Notes due 2023 |  | 398,986 |  |  | 398,835 |
$400 million 3.95% Senior Notes due 2026 |  | 399,985 |  |  | — |
$100 million 4.09% Promissory Note due 2039 |  | 94,370 |  |  | 96,849 |
$400 million 6.20% Subordinated Debentures due 2042 |  | 400,000 |  |  | 400,000 |
$400 million 5.75% Subordinated Debentures due 2056 |  | 400,000 |  |  | — |
$400 million Variable Rate Junior Subordinated Debentures due 2065 |  | 318,737 |  |  | 318,734 |
Sub-total |  | 3,110,853 |  |  | 2,312,629 |
Unamortized issuance costs |  | (22,218 | ) |  | (15,081 | )
Long-term Debt |  | $ | 3,088,635 |  |  | $ | 2,297,548 |
In June 2016, RGA issued 3.95% Senior Notes due September 15, 2026 with a face amount of $400.0 million and 5.75% Fixed-To-Floating Rate Subordinated Debentures due June 15, 2056 with a face amount of $400.0 million. These securities have been registered with the Securities and Exchange Commission. The net proceeds from these offerings were approximately $791.2 million and will be used in part to repay upon maturity the Company’s $300.0 million 5.625% Senior Notes that mature in March 2017. The remainder will be used for general corporate purposes. Capitalized issue costs were approximately $8.8 million. On December 15, 2015, the interest rate on RGA’s Junior Subordinated Debentures with a face amount of $400.0 million converted from a fixed rate of 6.75% to a floating rate equal to the three-month LIBOR plus 266.5 basis points. Certain of the Company’s debt agreements contain financial covenant restrictions related to, among others, liens, the issuance and disposition of stock of restricted subsidiaries, minimum requirements of consolidated net worth, maximum ratios of debt to capitalization and change of control provisions. A material ongoing covenant default could require immediate payment of the amount due, including principal, under the various agreements. Additionally, the Company’s debt agreements contain cross-default covenants, which would make outstanding borrowings immediately payable in the event of a material uncured covenant default under any of the agreements, including, but not limited to, non-payment of indebtedness when due for an amount in excess of $100.0 million, bankruptcy proceedings, or any other event which results in the acceleration of the maturity of indebtedness. As of December 31, 2016 and 2015, the Company had $3,110.9 million and $2,312.6 million, respectively, in outstanding borrowings under its debt agreements and was in compliance with all covenants under those agreements. As of December 31, 2016 and 2015, the average interest rate on long-term debt outstanding was 5.16% and 5.20%, respectively. The ability of the Company to make debt principal and interest payments depends on the earnings and surplus of subsidiaries, investment earnings on undeployed capital proceeds, and the Company’s ability to raise additional funds. Future principal payments due on long-term debt, excluding discounts, as of December 31, 2016, were as follows (dollars in thousands):
| Calendar Year
| 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | Thereafter
Long-term debt | $ | 302,582 |  |  | $ | 2,690 |  |  | $ | 402,802 |  |  | $ | 2,919 |  |  | $ | 403,040 |  |  | $ | 2,000,140 |
Credit and Committed Facilities The Company has obtained bank letters of credit in favor of various affiliated and unaffiliated insurance companies from which the Company assumes business. These letters of credit represent guarantees of performance under the reinsurance agreements and allow ceding companies to take statutory reserve credits. Certain of these letters of credit contain financial covenant restrictions. At December 31, 2016 and 2015, there were approximately $189.4 million and $132.2 million, respectively, of undrawn outstanding bank letters of credit in favor of third parties. Additionally, the Company utilizes letters of credit primarily to secure reserve credits when it retrocedes business to its affiliated subsidiaries. The Company cedes business to its affiliates to help reduce the amount of regulatory capital required in certain jurisdictions such as the U.S. and the United Kingdom. As of December 31, 2016 and 2015, $1,010.8 million and $1,127.4 million, respectively, in undrawn letters of credit from various banks were outstanding, primarily backing reinsurance between the various subsidiaries of the Company. The banks providing letters of credit to the Company are included on the NAIC list of approved banks. The Company maintains seven committed credit facilities, a syndicated revolving credit facility with a capacity of $850.0 million and six letter of credit facilities with a combined capacity of $741.6 million. The Company may borrow cash and obtain letters of credit in multiple currencies under its syndicated revolving credit facility. The following table provides additional information on the Company’s existing committed credit facilities as of December 31, 2016 and 2015 (dollars in thousands):
|  |  |  | Amount Utilized(1) December 31, |  |
Facility Capacity |  | Maturity Date |  | 2016 |  | 2015 |  | Basis of Fees
270,000 |  |  | November 2017 |  | 270,000 |  |  | 270,000 |  |  | Fixed
161,974 (2) |  |  | November 2017 |  | 31,382 |  |  | 66,154 |  |  | Fixed
72,080 (2) |  |  | December 2018 |  | 72,080 |  |  | 36,430 |  |  | Fixed
17,513 (2) |  |  | March 2019 |  | 17,513 |  |  | 45,422 |  |  | Fixed
120,000 |  |  | June 2019 |  | 85,040 |  |  | 85,040 |  |  | Fixed
850,000 |  |  | September 2019 |  | 96,095 |  |  | 313,659 |  |  | Senior unsecured long-term debt rating
100,000 |  |  | June 2020 |  | 70,690 |  |  | 68,657 |  |  | Fixed
(1) | Represents issued but undrawn letters of credit. There was no cash borrowed for the periods presented.
(2) | Foreign currency denominated facility, amounts presented are in U.S. dollars.
Fees associated with the Company’s other letters of credit are not fixed for periods in excess of one year and are based on the Company’s ratings and the general availability of these instruments in the marketplace. Total fees expensed associated with the Company’s letters of credit were $7.9 million, $10.9 million and $12.6 million for the years ended December 31, 2016, 2015 and 2014, respectively, and are included in policy acquisition costs and other insurance expenses.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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