Debt

White Mountains’s debt outstanding as of December 31, 2016 and 2015 consisted of the following:



	December 31,			Effective	December 31,			Effective
Millions	2016			Rate ⁽¹⁾	2015			Rate ⁽¹⁾
WTM Bank Facility	$	—		N/A	$	50.0		3.9%
OneBeacon Bank Facility	—			N/A	—			N/A
OBH Senior Notes, at face value	275.0			4.7%	275.0			4.7%
Unamortized original issue discount and debt issuance costs	(1.8		)		(2.1		)
OBH Senior Notes, carrying value	273.2				272.9
MediaAlpha Bank Facility	12.9			5.7%	15.0			5.5%
Unamortized issuance cost	(.2		)		(.3		)
MediaAlpha Bank Facility, carrying value	12.7				14.7
Total debt	$	285.9			$	337.6

⁽¹⁾Effective rate considers the effect of the debt issuance costs.

A schedule of contractual repayments of White Mountains’s debt as of December 31, 2016, follows:



Millions	December 31, 2016
Due in one year or less	$	5.0
Due in two to three years	7.9
Due in four to five years	—
Due after five years	275.0
Total	$	287.9

WTM Bank Facility

On August 14, 2013, White Mountains entered into a revolving credit facility with a syndicate of lenders administered by Wells Fargo Bank, N.A. which has a total commitment of $425.0 million and has a maturity date of August 14, 2018 (the “WTM Bank Facility”). The WTM Bank Facility replaced White Mountains’s previous revolving credit facility, which had a total commitment of $375.0 million. During 2016, White Mountains borrowed a total of $350.0 million and repaid a total of $400.0 million under the WTM Bank Facility at a blended interest rate of 3.85%. During 2015, White Mountains borrowed a total of $125.0 million and repaid a total of $75.0 million under the WTM Bank Facility at a blended interest rate of 3.74%. As of December 31, 2016, the WTM Bank Facility was undrawn. White Mountains recorded $1.2 million, $0.1 million, $0.3 million of interest expense on the WTM Bank Facility for the years ended December 31, 2016, 2015 and 2014.

The WTM Bank Facility contains various affirmative, negative and financial covenants that White Mountains considers to be customary for such borrowings, including certain minimum net worth and maximum debt to capitalization standards. These covenants can restrict White Mountains in several ways, including its ability to incur additional indebtedness.

OneBeacon Bank Facility

On September 29, 2015, OneBeacon Ltd. and OBH, as co-borrowers and co-guarantors, entered into a revolving credit facility administered by U.S. Bank N.A. and also including BMO Harris Bank N.A., which has a total commitment of $65.0 million and has a maturity date of September 29, 2019 (the “OneBeacon Bank Facility”). As of December 31, 2016, the OneBeacon Bank Facility was undrawn.

The OneBeacon Bank Facility contains various affirmative, negative and financial covenants which White Mountains considers to be customary for such borrowings, including certain minimum net worth and maximum debt to capitalization standards. These covenants can restrict White Mountains in several ways, including its ability to incur additional indebtedness.

OBH Senior Notes

In November 2012, OneBeacon U.S. Holdings, Inc. (“OBH”), an intermediate holding company of OneBeacon, issued $275.0 million face value of senior unsecured notes (“OBH Senior Notes”) through a public offering, at an issue price of 99.9% and received $272.9 million of proceeds. The OBH Senior Notes bear an annual interest rate of 4.6% payable semi-annually in arrears on May 9 and November 9, until maturity on November 9, 2022, and are fully and unconditionally guaranteed as to the payment of principal and interest by OneBeacon Ltd. Taking into effect the amortization of the original issue discount and all underwriting and issuance expenses, the OBH Senior Notes have an effective yield to maturity of approximately 4.7% per annum.

In December 2012, the proceeds from the OBH Senior Notes were utilized to repurchase the remaining $269.8 million of outstanding senior notes issued in 2003 by OBH with an annual interest rate of 5.875% for $275.9 million. The repurchase resulted in a $6.3 million loss, including transaction fees and the write-off of the remaining $0.2 million in unamortized deferred costs and original issue discount at the time of repurchase.

OBH recorded $13.1 million, $13.0 million and $13.0 million in interest expense on the OBH Senior Notes for the years ended December 31, 2016, 2015 and 2014.

The OBH Senior Notes were issued under indentures that contain restrictive covenants which, among other things, limit the ability of OneBeacon Ltd., OBH, and their respective subsidiaries to create liens and enter into sale and leaseback transactions and limits the ability of OneBeacon Ltd. and OBH and their respective subsidiaries to consolidate, merge or transfer their properties and assets. The indentures do not contain any financial ratios or specified levels of net worth or liquidity to which OneBeacon Ltd. or OBH must adhere.

MediaAlpha Bank Facility

On July 23, 2015, MediaAlpha entered into a credit facility with Opus Bank, which has a total commitment of $20.0 million and has a maturity date of July 23, 2019 (the “MediaAlpha Bank Facility”). The MediaAlpha Bank Facility consists of a $15.0 million term loan facility, which had an outstanding balance of $12.9 million as of December 31, 2016, and a $5.0 million revolving credit facility, which was undrawn as of December 31, 2016. During 2016, MediaAlpha repaid a total of $2.1 million under the term loan facility and borrowed and repaid $2.5 million under the revolving loan facility. The MediaAlpha Bank Facility carries a variable interest rate that is based on the Prime Rate, as published by the Wall Street Journal, plus a spread of 1.5% as of December 31, 2016.

The MediaAlpha Bank Facility is secured by the intellectual property and the common stock of MediaAlpha's subsidiaries, and contains various affirmative, negative and financial covenants that White Mountains considers to be customary for such borrowings, including a maximum leverage ratio.

Debt Covenants

As of December 31, 2016, White Mountains was in compliance with all of the covenants under all of its debt facilities.

Interest

Total interest expense incurred by White Mountains for its indebtedness was $16.1 million, $14.6 million and $14.2 million in 2016, 2015 and 2014. Total interest paid by White Mountains for its indebtedness was $14.8 million, $12.8 million, and $13.0 million in 2016, 2015 and 2014.