Long-Term Debt

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



	September 30, 2014		December 31, 2013
Direct Senior 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

Direct Subordinated Obligations of AFG:
6-1/4% Subordinated Debentures due September 2054	150		—

Subsidiaries:
Notes payable secured by real estate due 2014 through 2016	60		61
National Interstate bank credit facility	12		12
	72		73
	$	1,062	$	913

Scheduled principal payments on debt for the balance of 2014, the subsequent five years and thereafter were as follows: 2014 — $1 million; 2015 — $14 million; 2016 — $45 million; 2017 — $12 million; 2018 — none; 2019 — $350 million and thereafter — $640 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, 2014		December 31, 2013
Senior unsecured obligations	$	852	$	852
Subordinated unsecured obligations	150		—
Obligations secured by real estate	60		61
	$	1,062	$	913

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 September 30, 2014 or December 31, 2013.

National Interstate can borrow up to $100 million under its unsecured credit agreement, which expires in November 2017. At September 30, 2014, there was $12 million outstanding under this agreement, bearing interest at 1.20% (six-month LIBOR plus 0.875%).

In September 2014, AFG issued $150 million in 6-1/4% Subordinated Debentures due 2054. The net proceeds of the offering will be used for general corporate purposes, which may include repurchases of AFG’s outstanding Common Stock or the redemption of all or a portion of AFG’s $132 million outstanding aggregate principal amount of 7% Senior Notes due September 2050, which become redeemable (at par) at AFG’s option beginning on September 30, 2015.