Senior Debt

9 Months Ended

Sep. 30, 2020

10.	SENIOR DEBT

Senior debt is comprised of the following as of September 30, 2020 and December 31, 2019:

							Outstanding as of
	Initial			Annual			September 30, 2020						December 31, 2019
	Principal Amount		Maturity Date	Interest Rate(b)			Principal		Unamortized Debt Costs		Carrying Value		Principal		Unamortized Debt Costs		Carrying Value
Lazard Group 2025 Senior Notes	$	400,000	2/13/25		3.75	%	$	400,000	$	2,062	$	397,938	$	400,000	$	2,416	$	397,584
Lazard Group 2027 Senior Notes		300,000	3/1/27		3.625	%		300,000		2,526		297,474		300,000		2,822		297,178
Lazard Group 2028 Senior Notes		500,000	9/19/28		4.50	%		500,000		7,142		492,858		500,000		7,814		492,186
Lazard Group 2029 Senior Notes (a)		500,000	3/11/29		4.375	%		500,000		6,783		493,217		500,000		7,386		492,614
Total							$	1,700,000	$	18,513	$	1,681,487	$	1,700,000	$	20,438	$	1,679,562

(a)

During March 2019, Lazard Group completed an offering of $500,000 aggregate principal amount of 4.375% senior notes due 2029 (the “2029 Notes”). Interest on the 2029 Notes is payable semi-annually on March 11 and September 11 of each year, beginning September 11, 2019. Lazard Group used a portion of the net proceeds of the 2029 Notes to redeem or otherwise retire $250,000 aggregate principal amount of the 4.25% senior notes due 2020 (the “2020 Notes”). In March 2019, $167,943 aggregate principal amount was redeemed or otherwise retired, and the remaining $82,057 was redeemed or otherwise retired in April 2019.

(b)

The effective interest rates of Lazard Group’s 3.75% senior notes due February 13, 2025 (the “2025 Notes”), Lazard Group’s 3.625% senior notes due March 1, 2027 (the “2027 Notes”), Lazard Group’s 4.50% senior notes due September 19, 2028 (the “2028 Notes”), and the 2029 Notes are 3.87%, 3.76%, 4.68% and 4.54%, respectively.

The Company’s senior debt at September 30, 2020 and December 31, 2019 is carried at historical amounts of $1,681,487 and $1,679,562, respectively. At those dates, the fair value of such senior debt was approximately $1,917,000 and $1,839,000, respectively. The fair value of the Company’s senior debt is based on market quotations. The Company’s senior debt would be categorized within Level 2 of the hierarchy of fair value measurements if carried at fair value.

On July 22, 2020, Lazard Group entered into an Amended and Restated Credit Agreement for a three-year, $200,000 senior revolving credit facility with a group of lenders, which expires in July 2023 (the “Amended and Restated Credit Agreement”). The Amended and Restated Credit Agreement amended and restated Lazard Group’s amended and restated credit agreement, dated September 25, 2015 (the “Previous Credit Agreement”), in its entirety. Borrowings under the Amended and Restated Credit Agreement generally will bear interest at LIBOR plus an applicable margin for specific interest periods determined based on Lazard Group’s highest credit rating from an internationally recognized credit agency. The Amended and Restated Credit Agreement contains certain covenants, events of default and other customary provisions, including customary LIBOR-replacement mechanics. At September 30, 2020 and December 31, 2019, no amounts were outstanding under the Amended and Restated Credit Agreement or the Previous Credit Agreement, respectively.

As of September 30, 2020, the Company had approximately $219,000 in unused lines of credit available to it, including the credit facility provided under the Amended and Restated Credit Agreement and unused lines of credit available to LFB of approximately $18,000.

The Amended and Restated Credit Agreement and the indenture and the supplemental indentures relating to Lazard Group’s senior notes contain certain covenants, events of default and other customary provisions, including a customary make-whole provision in the event of early redemption, where applicable. As of September 30, 2020, the Company was in compliance with such provisions. All of the Company’s senior debt obligations are unsecured.