Senior Long-Term Debt And Other Debt

12 Months Ended

Dec. 31, 2019

Senior Long-Term Debt and Other Debt

The following table summarizes the Company's senior long-term debt and other debt.



	December 31,
(dollars in thousands)	2019		2018
7.125% unsecured senior notes, due September 30, 2019, interest payable semi-annually, net of unamortized discount of $0 in 2019 and $142 in 2018	$	—	$	234,640
6.25% unsecured senior notes, due September 30, 2020, interest payable semi-annually, net of unamortized premium of $0 in 2019 and $17,213 in 2018	—		367,213
5.35% unsecured senior notes, due June 1, 2021, interest payable semi-annually, net of unamortized discount of $0 in 2019 and $499 in 2018	—		249,417
4.90% unsecured senior notes, due July 1, 2022, interest payable semi-annually, net of unamortized discount of $705 in 2019 and $978 in 2018	349,181		348,864
3.625% unsecured senior notes, due March 30, 2023, interest payable semi-annually, net of unamortized discount of $653 in 2019 and $855 in 2018	249,226		248,988
3.50% unsecured senior notes, due November 1, 2027, interest payable semi-annually, net of unamortized discount of $2,013 in 2019 and $2,298 in 2018	297,402		297,035
3.35% unsecured senior notes, due September 17, 2029, interest payable semi-annually, net of unamortized discount of $2,410 in 2019	297,125		—
7.35% unsecured senior notes, due August 15, 2034, interest payable semi-annually, net of unamortized discount of $1,005 in 2019 and $1,074 in 2018	128,788		128,715
5.0% unsecured senior notes, due March 30, 2043, interest payable semi-annually, net of unamortized discount of $5,207 in 2019 and $5,431 in 2018	244,505		244,269
5.0% unsecured senior notes, due April 5, 2046, interest payable semi-annually, net of unamortized discount of $6,421 in 2019 and $6,664 in 2018	492,761		492,486
4.30% unsecured senior notes, due November 1, 2047, interest payable semi-annually, net of unamortized discount of $4,126 in 2019 and $4,278 in 2018	295,154		294,975
5.0% unsecured senior notes, due May 20, 2049, interest payable semi-annually, net of unamortized discount of $7,684 in 2019	591,010		—
4.15% unsecured senior notes, due September 17, 2050, interest payable semi-annually, net of unamortized discount of $5,449 in 2019	493,759		—
Other debt, at various interest rates ranging from 1.7% to 6.1%	95,272		102,975
Senior long-term debt and other debt	$	3,534,183	$	3,009,577

In May 2019, the Company issued $600 million of 5.0% unsecured senior notes due May 20, 2049. Net proceeds to the Company were $592.2 million, before expenses. In September 2019, the Company used a portion of these proceeds to repay its 7.125% unsecured senior notes due September 30, 2019 ($234.8 million aggregate principal outstanding at December 31, 2018). The Company expects to use the remainder of the proceeds for general corporate purposes.

In September 2019, the Company issued $300 million of 3.35% unsecured senior notes due September 17, 2029 and $500 million of 4.15% unsecured senior notes due September 17, 2050. Net proceeds to the Company were $297.5 million and $494.5 million, respectively, before expenses. The Company used a portion of these proceeds to purchase $125.2 million of principal on its 6.25% unsecured senior notes due September 30, 2020 (2020 Notes) and $97.8 million of principal on its 5.35% unsecured senior notes due June 1, 2021 (2021 Notes) through a tender offer at a total purchase price of $130.1 million and $103.0 million, respectively.

In October 2019, the Company used a portion of the remaining proceeds from the September 2019 issuances to redeem the remaining outstanding balance of $224.8 million on its 2020 Notes and $152.2 million on its 2021 Notes for a total purchase price of $233.4 million and $160.2 million, respectively. The Company expects to use the remainder of the proceeds for general corporate purposes. In connection with the September 2019 tender offer and purchase described above and the October 2019 redemption, the Company recognized a loss on early extinguishment of debt of $17.6 million during 2019.

The Company's 7.35% unsecured senior notes due August 15, 2034 are not redeemable. The Company's other unsecured senior notes are redeemable by the Company at any time, subject to payment of a make-whole premium to the noteholders. None of the Company's senior long-term debt is subject to any sinking fund requirements.

The Company's other debt is primarily associated with its subsidiaries and includes $70.4 million and $78.1 million associated with its Markel Ventures subsidiaries as of December 31, 2019 and 2018, respectively. The Markel Ventures debt is non-recourse to the holding company and generally is secured by the assets of those subsidiaries. ParkLand, a subsidiary of the Company, has formed subsidiaries for the purpose of acquiring and financing real estate (the real estate subsidiaries). The assets of certain real estate subsidiaries, which are not material to the Company, are consolidated in accordance with U.S. GAAP but are not available to satisfy the debt and other obligations of the Company or any affiliates other than those real estate subsidiaries.

The estimated fair value of the Company's senior long-term debt and other debt was $3.9 billion and $3.0 billion at December 31, 2019 and 2018, respectively.

The following table summarizes the future principal payments due at maturity on senior long-term debt and other debt as of December 31, 2019.



Years Ending December 31,	(dollars in thousands)
2020	$	63,519
2021	25,546
2022	356,185
2023	250,428
2024	—
2025 and thereafter	2,879,852
Total principal payments	$	3,575,530
Net unamortized discount	(35,673		)
Net unamortized debt issuance costs	(5,674		)
Senior long-term debt and other debt	$	3,534,183

In April 2019, the Company entered into a credit agreement for a new revolving credit facility, which provides up to $300 million of capacity for future acquisitions, investments and stock repurchases, and for other working capital and general corporate purposes. At the Company's discretion, up to $200 million of the total capacity may be used for letters of credit. The Company may increase the capacity of the facility by up to $200 million subject to obtaining commitments for the increase and certain other terms and conditions. The Company pays interest on balances outstanding under the facility and a utilization fee for letters of credit issued under the facility. The Company also pays a commitment fee (0.20% at December 31, 2019) on the unused portion of the facility based on the Company's leverage ratio as calculated under the credit agreement. The credit agreement includes financial covenants that require that the Company not exceed a maximum leverage ratio and maintain a minimum amount of consolidated net worth, as well as other customary covenants and events of default. This facility replaced the Company's previous $300 million revolving credit facility and is scheduled to expire in April 2024. There were no borrowings outstanding on either credit facility as of December 31, 2019 and 2018.

At December 31, 2019, the Company was in compliance with all covenants contained in its revolving credit facility. To the extent that the Company is not in compliance with its covenants, the Company's access to the revolving credit facility could be restricted.

The Company paid $169.7 million, $155.4 million and $141.3 million in interest on its senior long-term debt and other debt during the years ended December 31, 2019, 2018 and 2017, respectively.