G. Debt

Debt consists of the following:

	December 31, 2014				December 31, 2013
	Carrying		Fair Value		Carrying		Fair Value
	Value		Level 2		Value		Level 2
(In thousands)
5.875% Senior notes	$	100,000	$	110,123	$	100,000	$	108,500
0% Subordinated debentures		12,163		13,000		11,911		13,819
Total	$	112,163	$	123,123	$	111,911	$	122,319

5.875% Senior notes

On May 31, 2011, the Company issued $100 million of senior unsecured notes at par. The net proceeds of $99.1 million are being used for working capital and general corporate purposes, which may include acquisitions and seed investments. The issuance costs of $0.9 million have been capitalized and will be amortized over the term of the debt. The notes mature on June 1, 2021 and bear interest at 5.875% per annum, payable semi-annually on June 1 and December 1 of each year and commenced on December 1, 2011. Upon the occurrence of a change of control triggering event, as defined in the indenture, the Company would be required to offer to repurchase the notes at 101% of their principal amount.

Zero coupon Subordinated debentures due December 31, 2015

On December 31, 2010, the Company issued $86.4 million in par value of five year zero coupon subordinated debentures due December 31, 2015 (“Debentures”) to its shareholders of record on December 15, 2010 through the declaration of a special dividend of $3.20 per share. The Debentures have a par value of $100 and are callable at the option of the Company, in whole or in part, at any time or from time to time, at a redemption price equal to 100% of the principal amount of the Debentures to be redeemed. During 2014, 2013 and 2012, the Company repurchased 7,178 Debentures, 78,809 Debentures and 646,008 Debentures, respectively, having a face value of $0.7 million, $7.9 million and $64.6 million, respectively. The redemptions in 2014, 2013 and 2012 were accounted for as an extinguishment of debt and resulted in a loss of $0.1 million, $1.0 million and $6.3 million, respectively, which was included in extinguishment of debt on the consolidated statements of income. The debt is being accreted to its face value using the effective rate on the date of issuance of 7.45%. At December 31, 2014 and 2013, the debt was recorded at its accreted value of $12.2 million and $11.9 million, respectively.

The fair value of the Company’s debt, which is a Level 2 valuation, is estimated based on either quoted market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities or using market standard models. Inputs into these models include credit rating, maturity and interest rate.