Debt

12 Months Ended

Dec. 31, 2020

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,
				2020								2019
Instrument	Issue Date	Maturity Date	Coupon Rate	Par Value		Unamortized Discount & Issuance Costs		Book Value		Fair Value		Book Value
Senior notes	5/27/1993	5/15/2023	7.875%	$	165,612	$	(658)	$	164,954	$	192,020	$	164,713
Senior notes(1)	9/24/2012	9/15/2022	3.800%	150,000		(586)		149,414		158,081		149,089
Senior notes	9/27/2018	9/15/2028	4.550%	550,000		(5,672)		544,328		659,599		543,735
Senior notes	8/21/2020	8/15/2030	2.150%	400,000		(4,843)		395,157		405,384		—
Junior subordinated debentures	5/17/2016	6/15/2056	6.125%	300,000		(9,348)		290,652		325,800		290,584
Junior subordinated debentures	11/17/2017	11/17/2057	5.275%	125,000		(1,619)		123,381		130,870		123,367
Term loan				—		—		—		—		86,875
				1,690,612		(22,726)		1,667,886		1,871,754		1,358,363
Less current maturity of term loan				—		—		—		—		9,375
Total long-term debt				1,690,612		(22,726)		1,667,886		1,871,754		1,348,988

Current maturity of term loan				—		—		—		—		9,375
Commercial paper				255,000		(82)		254,918		254,918		289,363
Total short-term debt				255,000		(82)		254,918		254,918		298,738

Total debt				$	1,945,612	$	(22,808)	$	1,922,804	$	2,126,672	$	1,647,726

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

The commercial paper has the highest priority of all the debt, followed by senior notes then junior subordinated debentures. The Senior Notes due 2023 are noncallable, the remaining senior notes are callable under a make-whole provision, and the junior subordinated debentures are callable upon special events. Interest on the 6.125% Junior Subordinated Debentures is payable quarterly, all other long-term debt is payable semi-annually.

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


	Year Ended December 31,
	2021		2022		2023		2024		2025		Thereafter
Debt obligations	$	255,000	$	150,000	$	165,612	$	—	$	—	$	1,375,000

Credit Facility: On August 24, 2020, Globe Life entered into a new credit agreement, replacing the prior agreement that was due on May 17, 2021, which provides for a $750 million revolving credit facility that may be increased to $1 billion. The new credit facility matures August 24, 2023 and may be extended up to two one-year periods upon the Company's request. Pursuant to this agreement, the participating lenders have agreed to make revolving loans to Globe Life and to issue secured or unsecured letters of credit. The Company has not drawn on any of the credit to date.

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. In accordance with the agreement, Globe Life is subject to certain covenants regarding capitalization. As of December 31, 2020, 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,
	2020			2019
Balance at end of period (at par value)	$	255,000		$	290,000
Annualized interest rate	0.27		%	2.04		%
Letters of credit outstanding	$	135,000		$	150,000
Remaining amount available under credit line	360,000			310,000


	Year Ended December 31,
	2020			2019			2018
Average balance outstanding during period	$	318,409		$	288,684		$	368,228
Daily-weighted average interest rate (annualized)	1.50		%	2.62		%	2.40		%
Maximum daily amount outstanding during period	$	482,000		$	385,000		$	525,990

Short-term debt: On July 31, 2020, the Company paid down the remaining principal of $82.5 million on the 5-year $100 million term loan (Term Loan I) with a maturity date of May 17, 2021. This term loan was associated with the prior credit facility that was replaced in August 2020.

On April 9, 2020, Globe Life entered into a 364-Day Term Loan Agreement (Term Loan II). The Agreement provided the Company with access up to $300 million in unsecured term loans, all maturing on April 8, 2021. Globe Life borrowed the full amount on April 15, 2020 to utilize for general corporate purposes, including additional liquidity at the Parent Company. The net proceeds from the Term Loan II were $299.1 million. On August 17, 2020, the Company repaid $150 million of the Term Loan II with the remaining balance of $150 million repaid on August 26, 2020. The Company recorded a $634 thousand loss on redemption of debt from the write-off of unamortized issuance costs.

Long-term debt: On August 21, 2020, Globe Life completed the issuance and sale of $350 million in aggregate principal amount of Globe Life's 2.15% unsecured Senior Notes due August 15, 2030. The net proceeds from the sale of the Senior Notes were $345.8 million.

On September 3, 2020, Globe Life completed the issuance and sale of $50 million in aggregate principal of Globe Life's 2.15% unsecured Senior Notes also due August 15, 2030. These Senior Notes were issued as additional notes under a Second Supplemental Indenture governing the 2.15% Senior Notes issued on August 21, 2020. The Senior Notes are fully fungible and have the same terms as the first issuance. The net proceeds from the sale of the Senior Notes were $49.3 million, after giving effect to the underwriting expenses.

Globe Life utilized the total net proceeds of $395 million to extinguish the Term Loan II and for general corporate purposes, which included additional capital investments in its insurance subsidiaries and additional holding company liquidity.