Debt

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



	June 30, 2014		December 31, 2013
5.20% unsecured senior notes due February 2015 (a)	$	—	$	95,633
5.25% unsecured senior notes due June 2015 (a)	234,769		233,085
6.50% unsecured senior notes due May 2016 (a)	460,795		459,581
7.625% unsecured senior notes due October 2017 (b)	122,707		122,663
7.875% unsecured senior notes due June 2032 (a)	299,217		299,196
6.375% unsecured senior notes due May 2033 (a)	398,604		398,567
6.00% unsecured senior notes due February 2035 (a)	299,456		299,443
7.375% unsecured senior notes due June 2046 (a)	—		150,000
Total senior notes – carrying value (c)	$	1,815,548	$	2,058,168
Estimated fair value	$	1,910,989	$	2,070,744


(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.

Debt retirement

During the six months ended June 30, 2014 and 2013, we retired prior to their scheduled maturity dates senior notes totaling $245.7 million and $434.4 million, respectively, and recorded losses related to these transactions totaling $8.6 million and $23.1 million, respectively. Losses on these transactions include the write-off of unamortized discounts, premiums, and transaction fees and are reflected in other expense, net.

Letter of credit facilities

We maintain separate cash-collateralized letter of credit agreements with a number of financial institutions. Letters of credit totaling $86.9 million and $58.7 million were outstanding under these agreements at June 30, 2014 and December 31, 2013, 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 $107.2 million and $124.4 million were outstanding under this facility at June 30, 2014 and December 31, 2013, respectively.

Revolving credit facility

On July 23, 2014, we entered into a senior unsecured revolving credit facility (the “Revolving Credit Facility”) that matures on July 21, 2017. The Revolving Credit Facility provides for maximum borrowings of $500 million and contains an uncommitted accordion feature that could increase the size of the Revolving Credit Facility to $1.0 billion, subject to certain conditions and availability of additional bank commitments. The Revolving Credit Facility also provides for the issuance of letters of credit that reduce available borrowing capacity under the Revolving Credit Facility and may total no more than the greater of: (i) 50% of the size of the facility or (ii) $300 million in the aggregate. The interest rate on borrowings under the Revolving Credit Facility may be based on either the London Interbank Offered Rate or Base Rate plus an applicable margin, as defined. The Revolving Credit Facility contains financial covenants that require us to maintain a minimum Tangible Net Worth, a minimum Interest Coverage Ratio, and a maximum Debt to Capitalization Ratio (as each term is defined in the Revolving Credit Facility). As of the execution date, we were in compliance with all covenants. Outstanding loans under the Revolving Credit Facility are guaranteed by certain of our wholly-owned subsidiaries. We intend to use the Revolving Credit Facility as our primary source for letters of credit.

Financial Services

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. Pulte Mortgage had $58.5 million and $105.7 million outstanding under the Repurchase Agreement at June 30, 2014 and December 31, 2013, respectively, and was in compliance with all of its covenants and requirements as of those dates.