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Debt | 9 Months Ended
--- | ---
Sep. 30, 2014
Debt Disclosure [Abstract] |
Debt | Note 4 - Debt The amortized cost of debt outstanding at September 30, 2014 and December 31, 2013 was:
(Dollars in Millions) |  | Sep 30, 2014 |  | Dec 31, 2013
Senior Notes: |  |  |  |
6.00% Senior Notes due November 30, 2015 |  | $ | 249.4 |  |  | $ | 249.0 |
6.00% Senior Notes due May 15, 2017 |  | 358.3 |  |  | 357.9 |
7.375% Subordinated Debentures due February 27, 2054 |  | 144.2 |  |  | — |
Total Debt Outstanding |  | $ | 751.9 |  |  | $ | 606.9 |
Kemper has a four-year, $225.0 million, unsecured, revolving credit agreement, expiring March 7, 2016, with a group of financial institutions. The credit agreement provides for fixed and floating rate advances for periods up to six months at various interest rates. The 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 Insurance”) and Trinity Universal Insurance Company (“Trinity”). Proceeds from advances under the credit agreement may be used for general corporate purposes, including repayment of existing indebtedness. There were no outstanding borrowings under the credit agreement at either September 30, 2014 or December 31, 2013. United Insurance and Trinity are members of the Federal Home Loan Bank (“FHLB”) of Chicago and Dallas, respectively. The FHLB memberships provide United Insurance and Trinity with access to additional sources of liquidity. Effective December 31, 2013, Trinity and the FHLB of Dallas entered into agreements pursuant to which Trinity may obtain advances from the FHLB of Dallas. Effective March 18, 2014, United Insurance and the FHLB of Chicago entered into agreements pursuant to which United Insurance may obtain advances from the FHLB of Chicago. Advances from the FHLB of Dallas and Chicago are subject to collateral requirements as specified in the respective agreements with Trinity and United Insurance. There were no advances from the FHLB of Dallas or Chicago outstanding at either September 30, 2014 or December 31, 2013. On February 27, 2014, Kemper issued $150.0 million of its 7.375% subordinated debentures due February 27, 2054 (the “2054 Subordinated Debentures”). The net proceeds of the issuance were $144.2 million, net of discount and transaction costs, for an effective yield of 7.69%. The 2054 Subordinated Debentures are unsecured and are subordinated and junior to the senior indebtedness of Kemper. Interest on the 2054 Subordinated Debentures is payable quarterly. As long as no event of default has occurred, Kemper may defer interest payments on the 2054 Subordinated Debentures for up to five consecutive years without giving rise to an event of default. During a deferral period, interest will continue to accrue at the stated interest rate compounded quarterly. Kemper is permitted to redeem some or all of the 2054 Subordinated Debentures on or after February 27, 2019, at a redemption price that is equal to their principal amount plus accrued and unpaid interest. Kemper is permitted to redeem the 2054 Subordinated Debentures in whole, but not in part, at any time prior to February 27, 2019, within 90 days of the occurrence of certain tax events or rating agency events, at specified redemption prices. Note 4 - Debt (Continued) Interest Expense, including facility fees, accretion of discount and amortization of issuance costs, for the nine and three months ended September 30, 2014 and 2013 was:
|  | Nine Months Ended |  | Three Months Ended
(Dollars in Millions) |  | Sep 30, 2014 |  | Sep 30, 2013 |  | Sep 30, 2014 |  | Sep 30, 2013
Notes Payable under Revolving Credit Agreement |  | $ | 0.6 |  |  | $ | 0.9 |  |  | $ | 0.2 |  |  | $ | 0.3 |
Senior Notes Payable: |  |  |  |  |  |  |  |
6.00% Senior Notes due November 30, 2015 |  | 11.6 |  |  | 11.6 |  |  | 3.9 |  |  | 3.9 |
6.00% Senior Notes due May 15, 2017 |  | 16.6 |  |  | 16.6 |  |  | 5.5 |  |  | 5.5 |
7.375% Subordinated Debentures due February 27, 2054 |  | 6.6 |  |  | — |  |  | 2.8 |  |  | — |
Mortgage Note Payable |  | — |  |  | 0.2 |  |  | — |  |  | — |
Interest Expense before Capitalization of Interest |  | 35.4 |  |  | 29.3 |  |  | 12.4 |  |  | 9.7 |
Capitalization of Interest |  | (0.8 | ) |  | (0.7 | ) |  | (0.3 | ) |  | (0.2 | )
Total Interest Expense |  | $ | 34.6 |  |  | $ | 28.6 |  |  | $ | 12.1 |  |  | $ | 9.5 |
Interest paid, including facility fees, for the nine and three months ended September 30, 2014 and 2013 was:
|  | Nine Months Ended |  | Three Months Ended
(Dollars in Millions) |  | Sep 30, 2014 |  | Sep 30, 2013 |  | Sep 30, 2014 |  | Sep 30, 2013
Notes Payable under Revolving Credit Agreement |  | $ | 0.5 |  |  | $ | 0.6 |  |  | $ | 0.2 |  |  | $ | 0.4 |
Senior Notes Payable: |  |  |  |  |  |  |  |
6.00% Senior Notes due November 30, 2015 |  | 7.5 |  |  | 7.5 |  |  | — |  |  | — |
6.00% Senior Notes due May 15, 2017 |  | 10.8 |  |  | 10.8 |  |  | — |  |  | — |
7.375% Subordinated Debentures due February 27, 2054 |  | 5.5 |  |  | — |  |  | 2.7 |  |  | — |
Mortgage Note Payable |  | — |  |  | 0.3 |  |  | — |  |  | 0.1 |
Total Interest Paid |  | $ | 24.3 |  |  | $ | 19.2 |  |  | $ | 2.9 |  |  | $ | 0.5 |

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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 SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: 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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