Note 4 - Notes Payable

The amortized cost of debt outstanding at September 30, 2013 and December 31, 2012 was:



(Dollars in Millions)	Sep 30, 2013		Dec 31, 2012
Senior Notes:
6.00% Senior Notes due May 15, 2017	$	357.8	$	357.3
6.00% Senior Notes due November 30, 2015	248.9		248.6
Mortgage Note Payable due September 1, 2013	—		5.5
Total Notes Payable	$	606.7	$	611.4

Kemper has a four-year, $325.0 million, unsecured, revolving credit agreement, expiring March 7, 2016 (the “2016 Credit Agreement”), with a group of financial institutions. The 2016 Credit Agreement provides for fixed and floating rate advances for periods up to six months at various interest rates. The 2016 Credit Agreement contains various financial covenants, including limits on total debt to total capitalization, consolidated net worth and minimum risk-based capital ratios for Kemper’s largest insurance subsidiaries, United Insurance Company of America (“United”) and Trinity Universal Insurance Company (“Trinity”). Proceeds from advances under the 2016 Credit Agreement may be used for general corporate purposes, including repayment of existing indebtedness. There were no outstanding borrowings under the 2016 Credit Agreement at either September 30, 2013 or December 31, 2012, and accordingly, $325.0 million was available for future borrowings at such dates.

Interest Expense, including facility fees, accretion of discount and write-off of unamortized issuance costs from the former credit agreement, for the nine and three months ended September 30, 2013 and 2012 was:



	Nine Months Ended						Three Months Ended
(Dollars in Millions)	Sep 30, 2013			Sep 30, 2012			Sep 30, 2013			Sep 30, 2012
Notes Payable under Revolving Credit Agreements	$	0.9		$	1.6		$	0.3		$	0.3
Senior Notes Payable:
6.00% Senior Notes due May 15, 2017	16.6			16.6			5.5			5.5
6.00% Senior Notes due November 30, 2015	11.6			11.6			3.9			3.9
Mortgage Note Payable due September 1, 2013	0.2			0.3			—			0.1
Interest Expense before Capitalization of Interest	29.3			30.1			9.7			9.8
Capitalization of Interest	(0.7		)	(1.6		)	(0.2		)	(0.2		)
Total Interest Expense	$	28.6		$	28.5		$	9.5		$	9.6

Note 4 - Notes Payable (continued)

Interest paid, including facility fees and credit agreement issuance costs, for the nine and three months ended September 30, 2013 and 2012 was:



	Nine Months Ended				Three Months Ended
(Dollars in Millions)	Sep 30, 2013		Sep 30, 2012		Sep 30, 2013		Sep 30, 2012
Notes Payable under Revolving Credit Agreements	$	0.6	$	1.9	$	0.4	$	0.2
Senior Notes Payable:
6.00% Senior Notes due May 15, 2017	10.8		10.8		—		—
6.00% Senior Notes due November 30, 2015	7.5		7.5		—		—
Mortgage Note Payable due September 1, 2013	0.3		0.3		0.1		0.1
Total Interest Paid	$	19.2	$	20.5	$	0.5	$	0.3