DEBT

The disclosures below include details of the company’s debt. Debt of consolidated investment products is detailed in Note 11, “Consolidated Investment Products.”



	June 30, 2012				December 31, 2011
$ in millions	Carrying Value		Fair Value		Carrying Value		Fair Value
Unsecured Senior Notes*:
5.625% — due April 17, 2012	—		—		215.1		217.3
5.375% — due February 27, 2013	333.5		343.0		333.5		343.8
5.375% — due December 15, 2014	197.1		209.0		197.1		207.4
Floating rate credit facility expiring June 3, 2016	811.0		811.0		539.0		539.0
Total debt	1,341.6		1,363.0		1,284.7		1,307.5
Less: current maturities of total debt	(333.5	)	(343.0	)	(215.1	)	(217.3	)
Long-term debt	1,008.1		1,020.0		1,069.6		1,090.2


*	The company’s Senior Note indentures contain certain restrictions on mergers or consolidations. Beyond these items, there are no other restrictive covenants in the indentures.

The fair market value of the company’s Senior Notes was determined by market quotes provided by Bloomberg, which is considered a Level 2 valuation input. In the absence of an active market, the company relies upon the average price quoted by brokers for determining the fair market value of the debt.

Analysis of Borrowings by Maturity:



$ in millions	June 30, 2012
2012	—
2013	333.5
2014	197.1
2016	811.0
Total debt	1,341.6

At June 30, 2012, the outstanding balance on the credit facility was $811.0 million and the weighted average interest rate on the credit facility was 1.385%. Borrowings under the credit facility will bear interest at (i) LIBOR for specified interest periods or (ii) a floating base rate (based upon the highest of (a) the Bank of America prime rate, (b) the Federal Funds rate plus 0.50% and (c) LIBOR for an interest period of one month plus 1.00%), plus, in either case, an applicable margin determined with reference to the company’s credit ratings and specified credit default spreads. Based on credit ratings as of June 30, 2012 of the company and such credit default spreads, the applicable margin for LIBOR-based loans was 1.10% and for base rate loans was 0.10%. In addition, the company is required to pay the lenders a facility fee on the aggregate commitments of the lenders (whether or not used) at a rate per annum which is based on the company’s credit ratings. Based on credit ratings as of June 30, 2012, the annual facility fee was equal to 0.15%.

Financial covenants under the credit agreement include: (i) the quarterly maintenance of a debt/EBITDA ratio, as defined in the credit agreement, of not greater than 3.25:1.00 through June 30, 2014, and not greater than 3.00:1.00 thereafter, (ii) a coverage ratio (EBITDA, as defined in the credit agreement, divided by interest payable for the four consecutive fiscal quarters ended before the date of determination) of not less than 4.00:1.00. The company is in compliance with all regulatory minimum net capital requirements.