Debt

Our senior notes are summarized as follows ($000’s omitted):



	December 31,
	2013		2012
5.25% unsecured senior notes due January 2014 (a)	$	—	$	187,970
5.70% unsecured senior notes due May 2014 (a)	—		208,274
5.20% unsecured senior notes due February 2015 (a)	95,633		95,615
5.25% unsecured senior notes due June 2015 (a)	233,085		264,058
6.50% unsecured senior notes due May 2016 (a)	459,581		457,154
7.625% unsecured senior notes due October 2017 (b)	122,663		149,481
7.875% unsecured senior notes due June 2032 (a)	299,196		299,152
6.375% unsecured senior notes due May 2033 (a)	398,567		398,492
6.00% unsecured senior notes due February 2035 (a)	299,443		299,417
7.375% unsecured senior notes due June 2046 (a)	150,000		150,000
Total senior notes – carrying value (c)	$	2,058,168	$	2,509,613
Estimated fair value	$	2,070,744	$	2,663,451


(a)	Redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries.


(b)	Not redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries.


(c)	The recorded carrying value reflects the impact of various discounts and premiums that are amortized to interest cost over the respective terms of the senior notes.

Refer to Note 14 for supplemental consolidating financial information of the Company.

The indentures governing the senior notes impose certain restrictions on the incurrence of additional debt along with other limitations. At December 31, 2013, we were in compliance with all of the covenants and requirements under the senior notes.

Total senior note principal maturities of $2.1 billion during the five years after 2013 and thereafter are as follows: 2014 - $0.0 million; 2015 - $333.6 million; 2016 - $465.2 million; 2017 - $123.0 million; 2018 - $0.0 million; and thereafter - $1.2 billion.

Debt retirement

During the last three years, we significantly reduced our outstanding senior notes through a variety of transactions, including scheduled maturities, open market repurchases, early redemptions as provided within indenture agreements, and tender offers. As a result of these transactions, we reduced our outstanding senior notes by $461.4 million, $592.4 million, and $323.9 million during 2013, 2012, and 2011, respectively, and recorded losses totaling $26.9 million, $32.1 million, and $5.6 million in 2013, 2012 and 2011, respectively. Losses on these transactions include the write-off of unamortized discounts, premiums, and transaction fees and are reflected in other expense (income), net.

Letter of credit facilities

We maintain separate cash-collateralized letter of credit agreements with a number of financial institutions. Letters of credit totaling $58.7 million and $54.5 million were outstanding under these agreements at December 31, 2013 and 2012, respectively. Under these agreements, we are required to maintain deposits with the respective financial institutions in amounts approximating the letters of credit outstanding. Such deposits are included in restricted cash.

We also maintain an unsecured letter of credit facility with a bank that expires in September 2014. This facility permits the issuance of up to $150.0 million of letters of credit for general corporate purposes in support of any wholly-owned subsidiary. Letters of credit totaling $124.4 million and $124.6 million were outstanding under this facility at December 31, 2013 and 2012, respectively.

Financial Services

Pulte Mortgage provides mortgage financing for the majority of our home closings utilizing its own funds and funds made available pursuant to credit agreements with third party lenders or through intercompany borrowings. Pulte Mortgage uses these resources to finance its lending activities until the mortgage loans are sold in the secondary market, which generally occurs within 30 days.

Pulte Mortgage maintains a master repurchase agreement (the “Repurchase Agreement”) with third party lenders that expires in September 2014. Effective January 2014, Pulte Mortgage voluntarily reduced the borrowing capacity under the Repurchase Agreement from $150.0 million to $99.8 million subject to certain sublimits. We reduced the borrowing capacity in order to lower associated fees during seasonally low volume periods when the additional capacity is unnecessary. Borrowings under the Repurchase Agreement are secured by residential mortgage loans available-for-sale. The Repurchase Agreement contains various affirmative and negative covenants applicable to Pulte Mortgage, including quantitative thresholds related to net worth, net income, and liquidity. At December 31, 2013, Pulte Mortgage had $105.7 million outstanding under the Repurchase Agreement and was in compliance with all of its covenants and requirements. During 2011 and portions of 2012, Pulte Mortgage funded its operations using internal Company resources after allowing its previous third party credit arrangements to expire.

The following is aggregate borrowing information for our mortgage operations as of each year-end ($000’s omitted):



	December 31,
	2013			2012			2011
Available credit lines	$	150,000		$	150,000		$	2,500
Unused credit lines	$	44,336		$	11,205		$	2,500
Weighted-average interest rate	2.90		%	3.00		%	4.50		%