Borrowing Arrangements

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Borrowing Arrangements

Borrowing Arrangements

Bank line of credit

As of March 31, 2022, we have access to a $100 million bank revolving line of credit with a $25 million letter of credit sublimit that expires on October 29, 2026. As of March 31, 2022, a total of $99.1 million remains available under the facility due to $0.9 million outstanding letters of credit, which reduces the availability for letters of credit to $24.1 million.  We had no borrowings outstanding on our line of credit as of March 31, 2022.  Investments with a fair value of $110.9 million were pledged as collateral on the line at March 31, 2022. The investments pledged as collateral have no trading restrictions and are reported as available-for-sale securities and cash and cash equivalents on our Statement of Financial Position as of March 31, 2022. The bank requires compliance with certain covenants, which include leverage ratios and debt restrictions, for our line of credit.  We are in compliance with all covenants at March 31, 2022.

Term loan credit facility

In 2016, we entered into a credit agreement for a $100 million senior secured draw term loan credit facility ("Credit Facility") for the acquisition of real property and construction of an office building that now serves as part of our principal headquarters. On January 1, 2019, the Credit Facility converted to a fully-amortized term loan with monthly payments of principal and interest at a fixed rate of 4.35% over a period of 28 years. Investments with a fair value of $110.0 million were pledged as collateral for the facility and are reported as available-for-sale securities and cash and cash equivalents on our Statement of Financial Position as of March 31, 2022. The bank requires compliance with certain covenants, which include leverage ratios, debt restrictions and minimum net worth, for our Credit Facility. We are in compliance with all covenants at March 31, 2022.

The remaining unpaid balance from the Credit Facility is reported at carrying value, net of unamortized loan origination and commitment fees, as long-term borrowings on our Statements of Financial Position. See Note 5, "Fair Value" for the estimated fair value of these borrowings.

Annual principal and interest payments

The following table sets forth future principal and interest payments:

(in thousands)
Year		Principal payments	Interest payments		Total
2022	$	1,574	$	3,063	$	4,637
2023		2,226	3,957		6,183
2024		2,302	3,881		6,183
2025		2,448	3,735		6,183
2026		2,556	3,627		6,183
Thereafter		82,440	41,108		123,548