Debt

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



	December 31,
	2014		2013
5.20% unsecured senior notes due February 2015 (a)	$	—	$	95,633
5.25% unsecured senior notes due June 2015 (a)	236,452		233,085
6.50% unsecured senior notes due May 2016 (a)	462,009		459,581
7.625% unsecured senior notes due October 2017 (b)	122,752		122,663
7.875% unsecured senior notes due June 2032 (a)	299,239		299,196
6.375% unsecured senior notes due May 2033 (a)	398,640		398,567
6.00% unsecured senior notes due February 2035 (a)	299,469		299,443
7.375% unsecured senior notes due June 2046 (a)	—		150,000
Total senior notes – carrying value (c)	$	1,818,561	$	2,058,168
Estimated fair value	$	1,952,774	$	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.

The indentures governing the senior notes impose certain restrictions on the incurrence of additional debt along with other limitations. At December 31, 2014, we were in compliance with all of the covenants and requirements under the senior notes. Total senior note principal maturities of $1.8 billion during the five years following 2014 and thereafter are as follows: 2015 - $238.0 million; 2016 - $465.2 million; 2017 - $123.0 million; 2018 - $0.0 million; 2019 - $0.0 million; and thereafter - $1.0 billion. Refer to Note 13 for supplemental consolidating financial information of the Company.

Debt retirement

During the last three years, we significantly reduced our outstanding senior notes through a variety of transactions. As a result of these transactions, we reduced our outstanding senior notes by $245.7 million, $461.4 million, and $592.4 million during 2014, 2013, and 2012, respectively, and recorded losses totaling $8.6 million, $26.9 million, and $32.1 million in 2014, 2013 and 2012, respectively. Losses on debt repurchase transactions include the write-off of unamortized discounts, premiums, and transaction fees and are reflected in other expense (income), net.

Revolving credit facility

In July 2014, we entered into a senior unsecured revolving credit facility (the “Revolving Credit Facility”) maturing in July 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. At December 31, 2014, we had no borrowings outstanding and $208.4 million of letters of credit issued under the Revolving Credit Facility.

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 December 31, 2014, we were in compliance with all covenants. Outstanding balances under the Revolving Credit Facility are guaranteed by certain of our wholly-owned subsidiaries.

Other letter of credit facilities

We maintain a separate cash-collateralized letter of credit agreement with a bank. Letters of credit totaling $3.7 million and $58.7 million were outstanding under this agreement (or similar previous agreements with different financial institutions) at December 31, 2014 and 2013, respectively. Under this agreement, we are required to maintain deposits with the financial institution in amounts approximating the letters of credit outstanding. Such deposits are included in restricted cash. An unsecured letter of credit facility we previously maintained with a bank expired in September 2014.

Limited recourse notes payable

Certain of our local homebuilding operations maintain limited recourse collateralized notes payable with third parties totaling $22.3 million and $7.5 million at December 31, 2014 and 2013, respectively. These notes have maturities ranging up to 6 years, are collateralized by the applicable land positions to which they relate, have no recourse to any other assets, and are classified within accrued and other liabilities. The stated interest rates on these notes range up to 5.00%.

Pulte Mortgage

Pulte Mortgage maintains a master repurchase agreement (the “Repurchase Agreement”) with third party lenders. In September 2014, Pulte Mortgage entered into an amendment to the Repurchase Agreement that extended the effective date to September 2015 and established a borrowing capacity of $150.0 million. The capacity will reduce to $99.8 million in February 2015, and will increase again to $150.0 million in June 2015. The purpose for the change in capacity during the term of the agreement is 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 $140.2 million and $105.7 million outstanding under the Repurchase Agreement at December 31, 2014, and 2013, respectively, and was in compliance with all of its covenants and requirements as of such dates.

The following is aggregate borrowing information for our mortgage operations ($000’s omitted):



	December 31,
	2014			2013			2012
Available credit lines	$	150,000		$	150,000		$	150,000
Unused credit lines	$	9,759		$	44,336		$	11,205
Weighted-average interest rate	2.70		%	2.90		%	3.00		%