Debt

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Debt

3. DEBT

As of December 31, 2024, outstanding debt balances totaled $100 million.

On September 15, 2023, we accessed $50 million from our revolving line of credit with PNC Bank, N.A. (PNC). The borrowing may be repaid at any time and carries an adjustable interest rate of 5.98 percent as of the end of 2024. The credit facility with PNC was entered into during the first quarter of 2023 and replaced the previous $60 million facility with Bank of Montreal, Chicago Branch, which expired on March 27, 2023. The line of credit permits us to borrow up to an aggregate principal amount of $100 million, but may be increased up to an aggregate principal amount of $130 million under certain conditions. The facility has a three-year term that expires on May 29, 2026.

On November 12, 2024, we repaid $50 million that was borrowed from the Federal Home Loan Bank of Chicago (FHLBC) in 2023 and paid interest monthly at an annualized rate of 5.44 percent. Additionally, on November 12, 2024 we borrowed $50 million from the FHLBC. The borrowing matures on November 12, 2025 and monthly interest is paid at an annualized rate of 4.44 percent.

Due to the lack of marketability and short tenor of our borrowings, the fair value of our debt approximates the carrying value. We paid $6 million of interest on our debt in 2024, compared to $9 million in 2023 and $8 million in 2022. The average rate on debt was 6.05 percent in 2024, 4.07 percent in 2023 and 3.89 percent in 2022. The weighted average interest rate on debt outstanding was 5.21 percent as of December 31, 2024.