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Long-Term Debt
9 Months Ended
Sep. 30, 2011
Long-Term Debt [Abstract] 
Long-Term Debt
J. Long-Term Debt
The carrying value of long-term debt consisted of the following (in millions):
                 
    September 30,     December 31,  
    2011     2010  
Direct obligations of AFG:
               
9-7/8% Senior Notes due June 2019
  $ 350     $ 350  
7% Senior Notes due September 2050
    132       132  
7-1/8% Senior Debentures due February 2034
    115       115  
Other
    3       3  
 
           
 
    600       600  
 
           
 
               
Subsidiaries:
               
Obligations of AAG Holding (guaranteed by AFG):
               
7-1/2% Senior Debentures due November 2033
    112       112  
7-1/4% Senior Debentures due January 2034
    86       86  
Notes payable secured by real estate due 2011 through 2016
    64       65  
Secured borrowings ($17 and $18 guaranteed by AFG)
    33       41  
National Interstate bank credit facility
    22       20  
American Premier 10-7/8% Subordinated Notes
          8  
 
           
 
    317       332  
 
           
 
               
Payable to Subsidiary Trusts:
               
AAG Holding Variable Rate Subordinated Debentures due May 2033
    20       20  
 
           
 
               
 
  $ 937     $ 952  
 
           
Scheduled principal payments on debt for the balance of 2011 and the subsequent five years were as follows: 2011 — $3 million; 2012 — $34 million; 2013 — $20 million; 2014 — $2 million; 2015 — $14 million and 2016 — $45 million.
As shown below (in millions), the majority of AFG’s long-term debt is unsecured obligations of the holding company and its subsidiaries:
                 
    September 30,     December 31,  
    2011     2010  
Unsecured obligations
  $ 840     $ 846  
Obligations secured by real estate
    64       65  
Other secured borrowings
    33       41  
 
           
 
  $ 937     $ 952  
 
           
AFG can borrow up to $500 million under its revolving credit facility which expires in August 2013. Amounts borrowed under this agreement bear interest at rates ranging from 1.75% to 3.00% (currently 2%) over LIBOR based on AFG’s credit rating. No amounts were borrowed under this facility at September 30, 2011.
In May 2011, American Premier paid $8 million to redeem its outstanding 10-7/8% Subordinated Notes at maturity.
In June 2010, National Interstate borrowed $30 million under its bank credit facility in connection with the July acquisition of Vanliner. In September 2010, AFG issued $132 million of 7% Senior Notes due in 2050.