Note 5 - Notes Payable

Total debt outstanding at March 31, 2012 and December 31, 2011 was:



(Dollars in Millions)	Mar 31, 2012		Dec 31, 2011
Senior Notes at Amortized Cost:
6.00% Senior Notes due May 15, 2017	$	356.9	$	356.8
6.00% Senior Notes due November 30, 2015	248.3		248.2
Mortgage Note Payable at Amortized Cost	5.6		5.6
Notes Payable at Amortized Cost	$	610.8	$	610.6

On March 7, 2012, Kemper entered into a new four-year, $325.0 million, unsecured, revolving credit agreement, expiring March 7, 2016 (the “2016 Credit Agreement”), with a group of financial institutions. The 2016 Credit Agreement replaced Kemper’s $245.0 million, unsecured, revolving credit agreement scheduled to expire on October 30, 2012 (the “Former Credit Agreement”), which was terminated on March 7, 2012. There were no borrowings under the Former Credit Agreement at either December 31, 2011 or at its termination. The 2016 Credit Agreement provides for fixed and floating rate advances for periods up to six months at various interest rates. The 2016 Credit Agreement contains various financial covenants, including limits on total debt to total capitalization, consolidated net worth and minimum risk-based capital ratios for Kemper’s largest insurance subsidiaries, United Insurance Company of America (“United”) and Trinity Universal Insurance Company (“Trinity”). Proceeds from advances under the 2016 Credit Agreement may be used for general corporate purposes, including repayment of existing indebtedness. There were no outstanding borrowings under the 2016 Credit Agreement at March 31, 2012, and, accordingly, $325.0 million was available for future borrowings.

In the first quarter of 2012, the Company wrote off $0.5 million of unamortized issuance costs related to the Former Credit Agreement.

Interest Expense, including facility fees, accretion of discount and write-off of unamortized credit agreement issuance costs, for the three months ended March 31, 2012 and 2011 was:



	Three Months Ended
(Dollars in Millions)	Mar 31, 2012			Mar 31, 2011
Notes Payable under Revolving Credit Agreements	$	1.0		$	0.5
Senior Notes Payable:
6.00% Senior Notes due May 15, 2017	5.5			5.5
6.00% Senior Notes due November 30, 2015	3.9			3.8
Mortgage Note Payable	0.1			0.1
Interest Expense before Capitalization of Interest	10.5			9.9
Capitalization of Interest	(0.8		)	(0.5		)
Total Interest Expense	$	9.7		$	9.4

Note 5 - Notes Payable (continued)

Interest paid, including facility fees and credit agreement issuance costs, for the three months ended March 31, 2012 and 2011 was:



	Three Months Ended
(Dollars in Millions)	Mar 31, 2012		Mar 31, 2011
Notes Payable under Revolving Credit Agreements	$	1.7	$	0.2
Mortgage Note Payable	0.1		0.1
Total Interest Paid	$	1.8	$	0.3