Debt

Debt consisted of the following as of September 30, 2013 and December 31, 2012:


	September 30, 2013		December 31, 2012
Margin borrowing facility	$	65,009	$	—
6.22% guaranteed senior notes due July 2013 to July 2015		—		54,000
Three-month LIBOR plus 4.05% junior subordinated debentures due September 2033		—		10,310
Three-month LIBOR plus 3.85% junior subordinated debentures due October 2033		20,619		20,619


Total debt	$	85,628	$	84,929

Margin Borrowing Facility

On July 19, 2013, the Company entered into a margin borrowing facility with a borrowing rate that is currently equal to the one week LIBOR rate plus 65 basis points, which combined is currently less than 1%. This facility is due on demand. The borrowing is subject to maintenance margin, which is a minimum account balance that must be maintained. A decline in market conditions could require an additional deposit of collateral. As of September 30, 2013, approximately $77.4 million in collateral was deposited to support the borrowing. The amount borrowed against the margin account may fluctuate as routine investment transactions, such as dividends received, investment income received, maturities and pay-downs, impact cash balances. The margin facility contains customary events of default, including, without limitation, insolvency, failure to make required payments, failure to comply with any representations or warranties, failure to adequately assure future performance, and failure of a guarantor to perform under its guarantee.

Guaranteed Senior Notes

On July 19, 2013, the Company paid the entire outstanding principal amount on its guaranteed senior notes. The payment of $58.6 million consisted of principal of $54.0 million and interest of $4.6 million, which included a make-whole provision of $2.9 million. This payment was funded by borrowing $60.0 million pursuant to the Company’s margin borrowing facility. Please see Note 13 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2012 Annual Report on Form 10-K for more information on the guaranteed senior notes.

Junior Subordinated Debentures

On September 30, 2013, the Company redeemed the entire outstanding principal amount on its UNG Trust I junior subordinated notes. The payment of $10.4 million consisted of principal of $10.3 million and interest of $0.1 million. This payment was funded by borrowing $10.0 million pursuant to the Company’s margin borrowing facility. Please see Note 13 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2012 Annual Report on Form 10-K for more information on the UNG Trust I junior subordinated notes.