Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

11. Debt

(a) Senior Notes

On June 26, 2012, Alleghany completed a public offering of $400.0 million aggregate principal amount of its 4.95% senior notes due June 27, 2022 (the “2022 Senior Notes”). The 2022 Senior Notes were unsecured and unsubordinated general obligations of Alleghany. Interest on the 2022 Senior Notes was payable semi-annually on June 27 and December 27 of each year. The 2022 Senior Notes were issued at approximately 99.9 percent of par, resulting in proceeds after underwriting discount, commissions and other expenses of $396.0 million and an effective yield of approximately 5.05 percent.

On June 27, 2022, Alleghany repaid at maturity all of its outstanding 2022 Senior Notes for the aggregate principal amount of $400.0 million.

See Note 8(a) to Notes to Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of the 2021 Form 10-K for additional information on the 2022 Senior Notes and Alleghany's outstanding senior notes.

(b) Alleghany Capital Operating Subsidiaries

The debt associated with Alleghany Capital’s operating subsidiaries totaled $672.6 million and $780.5 million as of June 30, 2022 and December 31, 2021, respectively, and is generally used to support working capital needs and to help finance acquisitions. As of June 30, 2022, the $672.6 million includes:

•$221.0 million of borrowings by Jazwares under its available credit facilities to support its seasonal peak working capital requirements and borrowings incurred and assumed from its recent acquisitions;

•$171.6 million of borrowings by IPS under its available credit facility and term loans, including U.S. dollar-equivalent Euro-based borrowings incurred from its acquisition of Linesight in 2021;

•$92.9 million of borrowings by W&W|AFCO Steel under its available credit facilities;

•$78.7 million of borrowings by Wilbert under its available credit facility and term loans;

•$53.8 million of term loans at Kentucky Trailer primarily related to borrowings to finance small acquisitions, including its recent acquisitions and borrowings under its available credit facilities;

•$30.9 million at Piedmont primarily related to borrowings to finance the acquisition of WPS in May 2021; and

•$23.7 million of term loans at PCT primarily related to borrowings to finance recent acquisitions.

None of the above liabilities are guaranteed by Alleghany or Alleghany Capital. In December 2019, third-party, floating-rate term loans at Concord were repaid and replaced with approximately $33 million of intercompany floating-rate debt funded by the Alleghany parent company. The intercompany debt and related interest expenses are eliminated at the Alleghany consolidated level.