Debt

12 Months Ended

Dec. 31, 2019

Note 11—Debt

The following table presents information about the terms and outstanding balances of Globe Life's debt.

Selected Information about Debt Issues


					As of December 31,
					2019															2018
Instrument	Issue Date	Maturity Date	Coupon Rate		Interest Payment Dates	Par Value		Book Value		Fair Value		Book Value
Notes	5/27/1993	5/15/2023	7.875%		semiannual	$	165,612	$	164,713	$	194,525	$	164,490
Senior notes⁽¹⁾	9/24/2012	9/15/2022	3.800%		semiannual	150,000		149,089		153,922		148,777
Senior notes	9/27/2018	9/15/2028	4.550%		semiannual	550,000		543,735		612,738		543,169
Junior subordinated debentures	5/17/2016	6/15/2056	6.125%		quarterly	300,000		290,584		316,920		290,520
Junior subordinated debentures	11/17/2017	11/17/2057	5.275%		semiannual	125,000		123,367		117,759		123,354
Term loan	6/13/2016	5/17/2021	2.952%	(2)	monthly	86,875		86,875		86,875		93,750
						1,377,487		1,358,363		1,482,739		1,364,060
Less current maturity of term loan⁽³⁾														9,375		9,375		9,375			6,875
Total long-term debt														1,368,112		1,348,988		1,473,364			1,357,185

Current maturity of term loan⁽³⁾														9,375		9,375		9,375			6,875
Commercial paper														290,000		289,363		289,363			300,973
Total short-term debt														299,375		298,738		298,738			307,848

Total debt														$	1,667,487	$	1,647,726	$	1,772,102		$	1,665,033

(1)An additional $150 million par value and book value is held by insurance subsidiaries that eliminates in consolidation.

(2)Interest paid at 1 month LIBOR plus 125 basis points, resets each month.

(3)The current amount of the term loan due of $9.4 million is classified as short-term debt.

Contractual Debt Obligations: The following table presents expected scheduled principal payments under our contractual debt obligations:


	Year Ended December 31,
	2020		2021		2022		2023		2024		Thereafter
Debt obligations	$	299,375	$	77,500	$	150,000	$	165,612	$	—	$	975,000

Funded debt: On September 27, 2018, Globe Life completed the issuance and sale of $550 million in aggregate principal of Globe Life's 4.55% Senior Notes (the "notes") due 2028. The notes were sold pursuant to Globe Life's shelf registration statement on Form S-3. The net proceeds from the sale of the notes were $543 million, after giving effect to the underwriting discounts and commissions and offering expenses payable by Globe Life. Globe Life used the net proceeds from the sale of the notes to redeem the $293 million outstanding principal amount on Globe Life's 9.25% Senior Notes on October 29, 2018, the payment of $11 million for the make-whole premium plus accrued and unpaid interest of $10 million, and to fund $150 million of additional capital to its insurance subsidiaries. Globe Life used the remaining net proceeds to repay outstanding commercial paper and for general corporate purposes. The Company recorded an $11 million loss on redemption of debt to Realized Gains (Losses) on the Consolidated Statements of Operations for the make-whole premium and removal of unamortized debt issuance cost.Due to increasing variable interest rates, on June 15, 2018, the Company called its $20 million Junior Subordinated Debentures.

Credit Facility: On May 17, 2016, Globe Life amended its credit facility to include, as a part of the facility, the issuance of a $100 million term loan and to extend the maturity date of the entire credit facility to May 2021. The facility is further designated as a back-up credit line for a commercial paper program under which the Company may either borrow from the credit line or issue commercial paper at any time, with total commercial paper outstanding not to exceed the facility maximum of $750 million, less any letters of credit issued. Interest is charged at variable rates. The term loan will be repaid on a redemption schedule which provides for quarterly installments that began June 30, 2017 that escalate each annual period with a balloon payment of $75 million due in May 2021. Interest on the term loan is computed and paid monthly at 125 basis points plus 1 Month LIBOR. In accordance with the agreement, Globe Life is subject to certain covenants regarding capitalization. As of December 31, 2019, the Company was in full compliance with these covenants.

Commercial paper outstanding and any amortization payments of the term loan due within one year are reported as short-term debt on the Consolidated Balance Sheets. A table presenting selected information concerning Globe Life's commercial paper borrowings is presented below.

Credit Facility - Commercial Paper


	At December 31,
	2019			2018
Balance at end of period (at par value)	$	290,000		$	302,100
Annualized interest rate	2.04		%	2.93		%
Letters of credit outstanding	$	150,000		$	155,000
Remaining amount available under credit line	310,000			292,900


	Year Ended December 31,
	2019			2018			2017
Average balance outstanding during period	$	288,684		$	368,228		$	323,429
Daily-weighted average interest rate (annualized)	2.62		%	2.40		%	1.30		%
Maximum daily amount outstanding during period	385,000			525,990			455,912