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Debt and letter of credit facilities
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Debt and letter of credit facilities
16. Debt and letter of credit facilities
Debt obligations
The following table represents a summary of the Company’s debt obligations on its consolidated balance sheets as of December 31, 2021 and 2020:
December 31, 2021December 31, 2020
Amount
Effective rate (1)
Amount
Effective rate (1)
2017 SEK Subordinated Notes, at face value (2)
$303.1 4.1 %n/an/a
Unamortized discount(6.8)n/a
2017 SEK Subordinated Notes, carrying value296.3 n/a
2016 Senior Notes, at face value (2)
400.0 4.5 %n/an/a
Unamortized premium6.0 n/a
2016 Senior Notes, carrying value
406.0 n/a
2015 Senior Notes, at face value115.0 7.0 %115.0 7.0 %
Unamortized issuance costs(0.6)(0.7)
2015 Senior Notes, carrying value114.4 114.3 
Total debt$816.7 $114.3 
(1)Effective rate considers the effect of the debt issuance costs, discount, and premium.
(2)In connection with the acquisition of Sirius Group, SiriusPoint assumed the outstanding debt of Sirius Group.
2017 SEK Subordinated Notes
On September 22, 2017, Sirius Group, through SIG, issued floating rate callable subordinated notes denominated in Swedish kronor ("SEK") in the amount of SEK 2,750.0 million (or $346.1 million on date of issuance) at a 100% issue price ("2017 SEK Subordinated Notes"). The 2017 SEK Subordinated Notes were issued in an offering that was exempt from the registration requirements of the Securities Act of 1933 (the "Securities Act"). The 2017 SEK Subordinated Notes bear interest on their principal amount at a floating rate equal to the applicable Stockholm Interbank Offered Rate for the relevant interest period plus an applicable margin, payable quarterly in arrears on March 22, June 22, September 22 and December 22 of each year until maturity in September 2047. Beginning on September 22, 2022, the 2017 SEK Subordinated Notes may be redeemed, in whole or in part, at the Company’s option.
As a result of the Company’s merger with SIG, the Company assumed the existing and outstanding aggregate principal amount of the 2017 SEK Subordinated Notes pursuant to the First Supplemental Subordinated Indenture, dated May 27, 2021, among SIG, the Company and The Bank of New York Mellon, as trustee (the “Trustee”). The Company was in compliance with all debt covenants as of and for the period ended December 31, 2021.
For the year ended December 31, 2021, the Company recorded $11.1 million of interest expense, inclusive of amortization of discount, on the 2017 SEK Subordinated Notes. For the year ended December 31, 2021, the Company also recognized $25.2 million of foreign exchange gains on the translation of the 2017 SEK Subordinated Notes into USD from SEK.
2016 Senior Notes
On November 1, 2016, Sirius Group, through SIG, issued $400.0 million face value of senior unsecured notes ("2016 Senior Notes") at an issue price of 99.2% for net proceeds of $392.4 million after taking into effect both deferrable and non-deferrable issuance costs. The 2016 SIG Senior Notes were issued in an offering that was exempt from the registration requirements of the Securities Act. The 2016 SIG Senior Notes bear an annual interest rate of 4.6%, payable semi-annually in arrears on May 1 and November 1 of each year until maturity in November 2026.
As a result of the Company’s merger with SIG, the Company assumed the existing and outstanding aggregate principal amount of the 2016 SIG Senior Notes pursuant to the Third Supplemental Senior Indenture, dated May 27, 2021, among SIG, the Company and the Trustee. The Company was in compliance with all debt covenants as of and for the period ended December 31, 2021.
For the year ended December 31, 2021, the Company recorded $14.7 million of interest expense, inclusive of amortization of premium, on the 2016 Senior Notes.
2015 Senior Notes
As of December 31, 2021, the Company had outstanding debt obligations consisting of an aggregate principal amount of $115.0 million of senior unsecured notes (the “2015 Senior Notes”) due February 13, 2025. The 2015 Senior Notes bear interest at 7.0% and interest is payable semi-annually on February 13 and August 13 of each year. The Company was in compliance with all debt covenants as of and for the years ended December 31, 2021 and December 31, 2020.
As a result of the Company’s merger with Third Point Re (USA) Holdings Inc, the Company acquired the existing and outstanding aggregate principal amount of the 2015 Senior Notes pursuant to the Second Supplemental Indenture, dated December 31, 2021, among Third Point Re (USA) Holdings Inc, the Company and the Trustee.
For the year ended December 31, 2021, the Company recorded $8.2 million of interest expense, inclusive of amortization of issuance costs, on the 2015 Senior Notes (2020 - $8.2 million).
Interest expense
Total interest expense incurred by the Company for its indebtedness for the year ended December 31, 2021 was $34.0 million (2020 - $8.2 million).
Standby letter of credit facilities
As of December 31, 2021, the Company had entered into the following letter of credit facilities:
Letters of CreditCollateral
Committed CapacityIssuedCash and Cash EquivalentsDebt securities
Committed - Secured letters of credit facilities$330.0 $208.5 $40.9 $99.0 
Uncommitted - Secured letters of credit facilitiesn/a908.5 459.3 667.6 
$1,117.0 $500.2 $766.6 
The Company’s secured letter of credit facilities are bilateral agreements that generally renew on an annual basis. The letters of credit issued under the secured letter of credit facilities are fully collateralized. The above referenced facilities are subject to various affirmative, negative and financial covenants that the Company considers to be customary for such borrowings, including certain minimum net worth and maximum debt to capitalization standards. See Note 6 for additional information.
Revolving credit facility
Effective February 26, 2021, the Company entered into a three-year, $300.0 million senior unsecured revolving credit facility (the “Facility”) with JPMorgan Chase Bank, N.A. as administrative agent. The Facility includes an option, subject to satisfaction of certain conditions including agreement of lenders representing greater than a majority of commitments, for the Company to request an extension by such lenders of the maturity date of the Facility by an additional 12 months. The Facility provides access to loans for working capital and general corporate purposes, and letters of credit to support obligations under insurance and reinsurance agreements, retrocessional agreements and for general corporate purposes. Loans and letters of credit under the Facility will become available, subject to customary conditions precedent. As of December 31, 2021, there were no outstanding borrowings under the Facility.