Debt

9 Months Ended

Sep. 30, 2011

Debt

Debt

Note 6.  Debt

White Mountains’ debt outstanding as of September 30, 2011 and December 31, 2010 consisted of the following:

Millions	September 30, 2011			December 31, 2010
OBH Senior Notes, at face value	$	269.9		$	419.9
Unamortized original issue discount	(.2		)	(.3		)
OBH Senior Notes, carrying value	269.7			419.6
Sirius Group Senior Notes, at face value	400.0			400.0
Unamortized original issue discount	(.7		)	(.8		)
Sirius Group Senior Notes, carrying value	399.3			399.2
WTM Bank Facility	—			—
Total debt	$	669.0		$	818.8

OBH Senior Notes

On April 20, 2011, through a cash tender offer, OneBeacon U.S. Holdings, Inc. (“OBH”) purchased and retired $150.0 million aggregate principal amount of OBH Senior Notes for $161.6 million, which resulted in a $12.0 million loss, including transaction fees.

On June 1, 2010, through a cash tender offer, OBH purchased and retired $156.4 million aggregate principal amount of OBH Senior Notes for an aggregate purchase price of $165.4 million, which resulted in a $9.6 million loss, including transaction fees.

During 2010, in addition to the cash tender offer, OBH repurchased and retired $29.7 million of outstanding OBH Senior Notes for $30.8 million, which resulted in a $1.2 million loss and OBIC purchased $1.1 million of outstanding OBH Senior Notes for $1.1 million.

Bank Facility

On August 12, 2011 White Mountains entered into a new revolving credit facility with a total commitment of $375.0 million (the “WTM Bank Facility”) with a syndicate of lenders administered by Bank of America. The WTM Bank Facility replaces the previous revolving credit facility which had a total commitment of $475.0 million.  As of September 30, 2011, the WTM Bank Facility was undrawn.  During the third quarter of 2011, White Mountains recorded $2.2 million of interest expense on the WTM Bank Facility, primarily related to costs associated with entering into the new facility.

Debt Covenants

At September 30, 2011, White Mountains was in compliance with all debt covenants.