Long-term Debt

ProAssurance’s outstanding long-term debt consisted of the following:



	(In thousands)
	September 30, 2012		December 31, 2011
Trust Preferred Securities due 2034, unsecured, interest at a variable rate of LIBOR plus 3.85%, reset quarterly. Note repaid in August 2012 at no gain or loss.	$	—	$	22,992
Surplus Notes due May 2034, unsecured, interest at a variable rate of LIBOR plus 3.85%, reset quarterly. Note repaid in August 2012 at no gain or loss.	—		12,000
Note Payable due February 2019 (the 2019 Note), interest at a variable rate of LIBOR plus 0.7%, carried at fair value, monthly principal payments required, outstanding principal at December 31, 2011 of $17.1 million. Outstanding principal repaid in July 2012. A loss of $2.2 million was recognized on the extinguishment.	—		14,180
Note Payable due February 2012. Note was repaid in February 2012.	—		515
Revolving Credit Agreement, expires in 2016, maximum outstanding borrowing of $150 million, interest rate set at the time funds are borrowed. No borrowings occurred during the periods shown.	—		—
	$	—	$	49,687

Interest Rate Swap

A related interest rate swap (the Swap) effectively fixed the rate on the 2019 Note at 6.6%. The Swap was terminated for $5.1 million at the time the 2019 Note was repaid. The liability for the Swap, which was carried at fair value as a part of other liabilities, approximated $4.7 million at December 31, 2011.

Covenant Compliance

ProAssurance is currently in compliance with all covenants.

Additional Information

For additional information regarding ProAssurance's long-term debt see Note 10 of the Notes to the Consolidated Financial Statements included in ProAssurance’s December 31, 2011 Form 10-K.