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Debt | 12 Months Ended
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Dec. 31, 2020
Debt Disclosure [Abstract] |
Debt | Debt The following table summarizes the Company’s Debt:
| December 31,
| 2019 |  | 2020
Senior bank debt | $ | 449.7 |  |  | $ | 349.8 |
Senior notes | 743.8 |  |  | 1,091.9 |
Junior convertible securities | 310.6 |  |  | 314.0 |
Junior subordinated notes | 289.7 |  |  | 556.4 |
Debt | $ | 1,793.8 |  |  | $ | 2,312.1 |
The Company’s senior notes, junior convertible securities, and junior subordinated notes are carried at amortized cost. Unamortized discounts and debt issuance costs are presented within the Consolidated Balance Sheets as an adjustment to the carrying value of the associated debt. As of December 31, 2020, Debt with a par value of $400.0 million and $350.0 million matures in 2024 and 2025, respectively. Senior Bank Debt The Company has a $1.25 billion senior unsecured multicurrency revolving credit facility and a $350.0 million senior unsecured term loan facility. The revolver matures on January 18, 2024, and the term loan, as amended, matures on January 18, 2026. Subject to certain conditions, the Company may increase the commitments under the revolver by up to an additional $500.0 million and may borrow up to an additional $75.0 million under the term loan. The Company pays interest on any outstanding obligations under the credit facilities at specified rates, based either on an applicable LIBOR or prime rate, plus a marginal rate determined based on its credit rating. As of December 31, 2020, the interest rate for the Company’s outstanding borrowings under the credit facilities was LIBOR plus 0.875%. The credit facilities contain financial covenants with respect to leverage and interest coverage, as well as customary affirmative and negative covenants, including limitations on priority indebtedness, asset dispositions and fundamental corporate changes, and certain customary events of default. As of December 31, 2019 and 2020, the Company had no outstanding borrowings under the revolver. As of December 31, 2019 and 2020, the Company had outstanding borrowings under the term loan of $450.0 million and $350.0 million, respectively, and the weighted-average interest rate on outstanding borrowings was 2.66% and 1.02%, respectively. The Company pays commitment fees on the unused portion of its revolver. For the years ended December 31, 2019 and 2020, these fees amounted to $1.5 million. On January 8, 2021, the Company amended and refinanced the term loan to adjust the marginal rate by 0.075% to 0.950% and to extend the maturity by three years from January 18, 2023 to January 18, 2026. The commercial terms of the term loan otherwise remained the same. Senior Notes and Junior Subordinated Notes As of December 31, 2020, the Company had senior notes and junior subordinated notes outstanding. The carrying value of the senior notes and junior subordinated notes is accreted to the principal amount at maturity over the remaining life of the underlying instrument. The principal terms of the senior notes and junior subordinated notes were as follows:
|  | 2024 Senior Notes |  | 2025 Senior Notes |  | 2030 Senior Notes |  | 2059 Junior Subordinated Notes |  | 2060 Junior Subordinated Notes
Issue date |  | February 2014 |  | February 2015 |  | June 2020 |  | March 2019 |  | September 2020
Maturity date |  | February 2024 |  | August 2025 |  | June 2030 |  | March 2059 |  | September 2060
Par value (in millions) |  | $ | 400.0 |  |  | $ | 350.0 |  |  | $ | 350.0 |  |  | $ | 300.0 |  |  | $ | 275.0 |
Stated coupon |  | 4.25 | % |  | 3.50 | % |  | 3.30 | % |  | 5.875 | % |  | 4.750 | %
Coupon frequency |  | Semi-annually |  | Semi-annually |  | Semi-annually |  | Quarterly(3) |  | Quarterly(3)
Potential call date |  | Any time(1) |  | Any time(1) |  | Any time(1) |  | March 2024(2) |  | September 2025(2)
Call price |  | As defined(1) |  | As defined(1) |  | As defined(1) |  | As defined(2) |  | As defined(2)
Listing |  | N.A. |  | N.A. |  | N.A. |  | NYSE |  | NYSE
__________________________ (1)The 2024, 2025 and 2030 senior notes may be redeemed, in whole or in part, at any time, in the case of the 2024 and 2025 senior notes, and at any time prior to March 15, 2030, in the case of the 2030 senior notes. In each case, the senior notes may be redeemed at a make-whole redemption price plus accrued and unpaid interest. The make-whole redemption price, in each case, is equal to the greater of 100% of the principal amount of the notes to be redeemed and the remaining principal and interest payments on the notes being redeemed (excluding accrued but unpaid interest to, but not including, the redemption date) discounted to their present value as of the redemption date at the applicable treasury rate plus 0.25%, in the case of the 2024 and the 2025 senior notes, and to their present value as of the redemption date on a semi-annual basis at the applicable treasury rate plus 0.40%, in the case of the 2030 senior notes. (2)The 2059 and 2060 junior subordinated notes may be redeemed at any time, in whole or in part, on or after March 30, 2024, in the case of the 2059 junior subordinated notes, and on or after September 30, 2025, in the case of the 2060 junior subordinated notes. In each case, the junior subordinated notes may be redeemed at 100% of the principal amount of the notes being redeemed plus any accrued and unpaid interest thereon. Prior to the applicable redemption date, at the Company’s option, the applicable junior subordinated notes may also be redeemed, in whole but not in part, at 100% of the principal amount, plus any accrued and unpaid interest, if certain changes in tax laws, regulations or interpretations occur; or at 102% of the principal amount, plus any accrued and unpaid interest, if a rating agency makes certain changes relating to the equity credit criteria for securities with features similar to the applicable notes. (3)The Company may, at its option, and subject to certain conditions and restrictions, defer interest payments subject to the terms of the junior subordinated notes. As of December 31, 2020, the effective interest rates of the 2024, the 2025 and the 2030 senior notes were 4.42%, 3.66% and 3.39%, respectively. As of December 31, 2020, the effective interest rates of the 2059 and the 2060 junior subordinated notes were 5.90% and 4.83%, respectively. Junior Convertible Securities The following table summarizes the Company’s junior convertible trust preferred securities outstanding (the “junior convertible securities”). The carrying value and principal amount at maturity of the junior convertible securities were as follows:
|  | December 31, 2019 |  | December 31, 2020
|  | Carrying Value |  | Principal Amount at Maturity |  | Carrying Value |  | Principal Amount at Maturity
Junior convertible securities(1) |  | $ | 315.4 |  |  | $ | 430.8 |  |  | $ | 318.4 |  |  | $ | 430.8 |
__________________________ (1)The carrying value is accreted to the principal amount at maturity over a remaining life of 17 years. The junior convertible securities bear interest at a rate of 5.15% per annum, payable quarterly in cash. Holders of the junior convertible securities have no rights to put these securities to the Company. Upon conversion, holders will receive cash or shares of common stock, or a combination thereof, at the Company’s election. The Company may redeem the junior convertible securities, subject to the stock trading at or above certain specified levels over specified times periods, and may also repurchase junior subordinated notes in the open market or in privately negotiated transactions from time to time at management’s discretion. The junior convertible securities are considered contingent payment debt instruments under federal income tax regulations, which require the Company to deduct interest in an amount greater than its reported interest expense. The Company estimates that these deductions will generate annual deferred tax liabilities of approximately $9 million. Assuming no redemptions or repurchases, these deferred tax liabilities will be reclassified directly to stockholders’ equity if the Company’s common stock is trading above certain thresholds at the time of the conversion of the securities. If the Company redeems the securities or repurchases the notes at a price below such thresholds, all or a portion of these deferred tax liabilities may be reclassified to income taxes payable which is presented within Other liabilities. In August 2019, in accordance with the convertible securities indenture, the Company adjusted the conversion rate of the junior convertible securities to 0.2558 shares of common stock per $50.00 junior convertible security, equivalent to an adjusted conversion price of $195.47 per share of common stock. The adjustment was the result of the Company’s cumulative declared dividends on its common stock since the prior adjustment. The Company may redeem the junior convertible securities if the closing price of its common stock exceeds $254.10 per share for 20 trading days in a period of 30 consecutive trading days.

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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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