Long-Term Debt

The carrying value of long-term debt consisted of the following (in millions):



	June 30, 2013		December 31, 2012
Direct obligations of AFG:
9-7/8% Senior Notes due June 2019	$	350	$	350
6-3/8% Senior Notes due June 2042	230		230
5-3/4% Senior Notes due August 2042	125		125
7% Senior Notes due September 2050	132		132
Other	3		3
	840		840
Subsidiaries:
Notes payable secured by real estate due 2013 through 2016	62		62
Secured borrowings ($15 and $16 guaranteed by AFG)	15		19
National Interstate bank credit facility	12		12
	89		93
Payable to Subsidiary Trusts:
AAG Holding Variable Rate Subordinated Debentures due May 2033	20		20
	$	949	$	953

In June 2013, AFG called the $20 million in AAG Holding Subordinated Debentures for redemption on August 15, 2013 at par value. Including this redemption, scheduled principal payments on debt for the balance of 2013 and the subsequent five years were as follows:

2013 — $36 million; 2014 — $2 million; 2015 — $14 million; 2016 — $45 million; 2017 — $12 million and 2018 — none.

As shown below (in millions), the majority of AFG’s long-term debt is unsecured obligations of the holding company and its subsidiaries:



	June 30, 2013		December 31, 2012
Unsecured obligations	$	872	$	872
Obligations secured by real estate	62		62
Other secured borrowings	15		19
	$	949	$	953

AFG can borrow up to $500 million under its revolving credit facility which expires in December 2016. Amounts borrowed under this agreement bear interest at rates ranging from 1.00% to 1.875% (currently 1.375%) over LIBOR based on AFG’s credit rating. No amounts were borrowed under this facility at June 30, 2013 or December 31, 2012.

National Interstate can borrow up to $100 million under its unsecured credit agreement, which expires in November 2017. At June 30, 2013 there was $12 million outstanding under this agreement, bearing interest at 1.34% (six-month LIBOR plus 0.875%).