LONG-TERM DEBT

Long-Term Debt

The table below presents all long-term debt outstanding as of December 31, 2017 and December 31, 2016:



		Effective Interest Rate	Carrying Value at
	Maturity	Effective Interest Rate	December 31, 2017		December 31, 2016
$150M Senior Notes Payable	December 15, 2027	6.25%	$	150,000	$	—
Florida State Board of Administration Note Payable	July 1, 2026	2.31%	10,000		11,176
BB&T Term Note Payable	May 26, 2031	3.00%	4,651		4,998
$30M Senior Notes Payable	December 5, 2026	7.26%	—		30,000
Interboro, LLC Promissory Note Payable	October 29, 2017	6.00%	—		8,550
Total long-term debt			$	164,651	$	54,724

At December 31, 2017, the annual maturities of our long-term debt were as follows:



	Amount
2018	$	1,523
2019	1,523
2020	1,523
2021	1,523
2022	1,523
Thereafter	157,036
Total debt	$	164,651

$150M Senior Notes Payable

On December 13, 2017, we issued $150,000,000 of senior notes that will mature in 10 years and bear interest at a rate equal to 6.25% per annum payable semi-annually on each June 15 and December 15, commencing June 15, 2018. The notes are senior unsecured obligations of the Company. We may redeem the notes at our option, at any time and from time to time in whole or in part, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon from the date of redemption to September 15, 2027. Thereafter, we may redeem the notes at par.

$30M Senior Notes Payable

On December 5, 2016, we issued $30,000,000 of senior notes to private investors pursuant to an Indenture dated as of December 5, 2016, by and between the Company and the trustee. The notes bore interest at a floating rate equal to the three-month LIBOR plus 5.75% per annum, with interest payable quarterly in arrears. The notes were redeemed at par value on December 13, 2017 without a pre-payment penalty.

Florida State Board of Administration Note Payable

On September 22, 2006, we issued a $20,000,000, 20-year note payable to the Florida State Board of Administration (SBA note). For the first three years of the SBA note we were required to pay interest only. On October 1, 2009, we began to repay the principal in addition to interest. The SBA note bears an annual interest rate equivalent to the 10-year U.S. Treasury Bond rate. The rate will be adjusted quarterly for the term of the SBA note based on the 10-year Constant Maturity Treasury rate.

Interboro, LLC Promissory Note Payable

On April 29, 2016, we issued an $8,550,000 promissory note to Interboro, LLC, the former parent company of IIC, as part of the purchase price paid to acquire our insurance subsidiary. The note matured and was paid in October 2017.

BB&T Term Note Payable

On May 26, 2016, we issued a $5,200,000, 15-year term note payable to BB&T (the BB&T note) with the intent to use the funds to purchase, renovate, furnish and equip our home office. The note bears interest at 1.65% in excess of the one-month LIBOR. In the event of default, BB&T, may, among other things, declare its loan immediately due and payable, require us to pledge additional collateral to the bank, and take possession of and foreclose upon our home office which has been pledged to the bank as security for the loan.

Financial Covenants

The SBA note, BB&T note, and $150M senior notes contain representations and warranties, conditions and covenants. If these requirements are not met, all amounts outstanding or otherwise owed could become due and payable immediately and other limitations could be placed on our ability to use any available borrowing capacity. At December 31, 2017, we were in compliance with all covenants as specified in the notes. Refer to Part II; Item 7 for additional information regarding financial covenants.

Debt Issuance Costs

The table below presents the rollforward of our debt issuance costs paid, in conjunction with the debt instruments described above, during the years ended December 31, 2017 and 2016:



	2017			2016
Balance at January 1,	$	549		$	—
Additions	3,264			596
Amortization	(526		)	(47		)
Balance at December 31,	$	3,287		$	549