Debt

3 Months Ended

Mar. 31, 2024

ProAssurance’s outstanding debt consisted of the following:


($ in thousands)	March 31, 2024		December 31, 2023

Contribution Certificates due 2031, interest at 3.0% (effective interest rate at 4.35%) paid annually in April	$	179,865	$	179,387
Revolving Credit Agreement, outstanding borrowings are not permitted to exceed $300 million aggregately, including a $50 million accordion feature; Revolving Credit Agreement expires in 2028. The effective interest rate was 7.53% as of March 31, 2024	125,000		125,000
Term Loan, principal repayments in quarterly installments beginning June 30, 2024; Term Loan expires in 2028. The effective interest rate was 7.65% as of March 31, 2024	125,000		125,000
Total principal	429,865		429,387
Less unamortized debt issuance costs	2,091		2,254
Debt less unamortized debt issuance costs	$	427,774	$	427,133

Covenant Compliance

There are no financial covenants associated with the Contribution Certificates due 2031.

The Revolving Credit Agreement contains customary representations, covenants and events constituting default, and remedies for default, as previously discussed. As of March 31, 2024, ProAssurance is in compliance with all covenants of the Revolving Credit Agreement.

Additional Information

For additional information regarding ProAssurance's debt, see Note 10 of the Notes to Consolidated Financial Statements included in ProAssurance's December 31, 2023 report on Form 10-K.