DEBT

Long-Term Debt

The Company’s long-term debt consists of the following as of December 31, 2018 and 2017 (dollars in thousands):



	2018			2017
$400 million 6.45% Senior Notes due 2019	$	399,941		$	399,873
$400 million 5.00% Senior Notes due 2021	399,466			399,245
$400 million 4.70% Senior Notes due 2023	399,288			399,138
$400 million 3.95% Senior Notes due 2026	399,988			399,987
$100 million 4.09% Promissory Note due 2039	89,098			91,787
$400 million 6.20% Subordinated Debentures due 2042	400,000			400,000
$400 million 5.75% Subordinated Debentures due 2056	400,000			400,000
$400 million Variable Rate Junior Subordinated Debentures due 2065	318,743			318,740
Sub-total	2,806,524			2,808,770
Unamortized issuance costs	(18,651		)	(20,405		)
Long-term Debt	$	2,787,873		$	2,788,365

RGA has entered into an interest rate swap on its Variable Rate Junior Subordinated Debentures that effectively fixes the interest rate on these securities at 4.82% until December 2037.

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 the amounts set forth in those agreements, bankruptcy proceedings, or any other event that results in the acceleration of the maturity of indebtedness. As of December 31, 2018 and 2017, the Company had $2,806.5 million and $2,808.8 million, respectively, in outstanding borrowings under its debt agreements and was in compliance with all covenants under those agreements. As of December 31, 2018 and 2017, the average interest rate on long-term debt outstanding was 5.24%.

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, 2018, were as follows (dollars in thousands):



	Calendar Year
	2019		2020		2021		2022		2023		Thereafter
Long-term debt	$	402,802	$	2,919	$	403,040	$	3,167	$	403,299	$	1,593,674

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, 2018 and 2017, there were approximately $105.6 million and $120.1 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, 2018 and 2017, $1,356.9 million and $1,492.2 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 eight committed credit facilities, a syndicated revolving credit facility with a capacity of $850.0 million and seven letter of credit facilities with a combined capacity of $1,260.3 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, 2018 and 2017 (dollars in thousands):



		Amount Utilized⁽¹⁾ December 31,
Current Capacity	Maturity Date	2018		2017		Basis of Fees
$191,583 ⁽²⁾	March 2019	$	4,156	$	5,952	Fixed
188,000	November 2019	188,000		188,000		Fixed
105,735 ⁽²⁾	December 2019	105,735		117,135		Fixed
100,000	June 2020	—		75,573		Fixed
100,000	May 2021	61,000		100,000		Fixed
75,000	June 2021	33,900		61,900		Fixed
500,000	May 2022	395,000		500,000		Debt rating and utilization %
850,000	August 2023	18,153		95,564		Senior unsecured long-term debt rating


(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 $9.7 million, $10.5 million and $7.9 million for the years ended December 31, 2018, 2017 and 2016, respectively, and are included in policy acquisition costs and other insurance expenses.