Indebtedness

9 Months Ended

Sep. 30, 2019

The table below provides a summary of our outstanding debt at September 30, 2019 and December 31, 2018:



Outstanding Debt	Issuance Date	Maturity Date	Interest Rate		Original Amount		2019	Carry Value
($ in thousands)	Issuance Date	Maturity Date	Interest Rate		Original Amount		Debt Discount and Unamortized Issuance Costs	September 30, 2019	December 31, 2018
Description
Long term
Issuance:
Senior Notes	3/1/2019	3/1/2049	5.375	%	$	300,000	9,065	290,935	—

Redemption:
Senior Notes	2/8/2013	2/9/2043	5.875	%	185,000		—	—	180,771

Other Outstanding:
FHLBI	12/16/2016	12/16/2026	3.03	%	60,000		—	60,000	60,000
FHLBNY	8/15/2016	8/16/2021	1.56	%	25,000		—	25,000	25,000
FHLBNY	7/21/2016	7/21/2021	1.61	%	25,000		—	25,000	25,000
Senior Notes	11/3/2005	11/1/2035	6.70	%	100,000		889	99,111	99,069
Senior Notes	11/16/2004	11/15/2034	7.25	%	50,000		281	49,719	49,700

Finance lease obligations¹								904	—
Total long-term debt							10,235	550,669	439,540

¹ Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets.

Short-Term Debt Activity

Short-term debt activity included the following in Nine Months 2019:


•	On March 7, 2019, Selective Insurance Company of America (“SICA”) borrowed short-term funds of $50 million from the FHLBNY at an interest rate of 2.64%. This borrowing was repaid on March 28, 2019.


•	On August 5, 2019, SICA borrowed short-term funds of $15 million from the FHLBNY at an interest rate of 2.29%. This borrowing was repaid on August 12, 2019.

Long-Term Debt Activity

In the first quarter of 2019, we issued $300 million of 5.375% Senior Notes due 2049 at a discount of $5.9 million which, when coupled with debt issuance costs of approximately $3.3 million, resulted in net proceeds from the offering of $290.8 million. The 5.375% Senior Notes pay interest on March 1 and September 1 of each year. The first interest payment was made on September 1, 2019. A portion of the proceeds from this debt issuance was used to fully redeem the $185 million aggregate principal amount of our 5.875% Senior Notes due 2043, with the remaining $106 million being used for general corporate purposes. The 5.875% Senior Notes had pre-tax debt retirement costs of $4.2 million, or $3.3 million after tax, which was recorded in Interest expense on the Consolidated Statements of Income in the first quarter of 2019.

For detailed information on our indebtedness, see Note 10. "Indebtedness" in Item 8. "Financial Statements and Supplementary Data." of our 2018 Annual Report.