Notes Payable and Debt and Financing Arrangements

(a) Notes Payable and Debt

The following table presents the Company's outstanding notes payable and debt at March 31, 2017 and December 31, 2016:



(U.S. dollars in thousands)	March 31, 2017				December 31, 2016
(U.S. dollars in thousands)	Commitment/ Debt (1)		In Use/ Outstanding (2)		Commitment/ Debt (1)		In Use/ Outstanding (2)
Debt:
2.30% Senior Notes due 2018	$	300,000	$	298,854	$	300,000	$	298,686
5.75% Senior Notes due 2021	400,000		398,061		400,000		397,953
6.375% Senior Notes due 2024	350,000		349,166		350,000		349,139
4.45% Subordinated Notes due 2025	500,000		493,531		500,000		493,329
6.25% Senior Notes due 2027	325,000		323,414		325,000		323,375
5.25% Senior Notes due 2043	300,000		296,460		300,000		296,427
5.5% Subordinated Notes due 2045	500,000		488,867		500,000		488,768
Total debt carrying value	$	2,675,000	$	2,648,353	$	2,675,000	$	2,647,677

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(1)

Excluded from the table are certain credit facilities under which the Company is permitted to utilize up to $1.0 billion at March 31, 2017 and December 31, 2016, for revolving loans to support general operating and financing needs. However, at March 31, 2017 and December 31, 2016, $287.7 million and $245 million, respectively, were utilized under these facilities to issue letters of credit, leaving $712.3 million and $755.0 million, respectively, available to support other operating and financing needs.

(2) "In Use/Outstanding" data represent March 31, 2017 and December 31, 2016 accreted values.

All outstanding debt of the Company at March 31, 2017 and December 31, 2016 was issued by XL-Cayman, a 100% owned subsidiary of XL-Bermuda. XL-Cayman's outstanding debt, other than the Senior Notes due 2024 and due 2027 is fully and unconditionally guaranteed by XL-Bermuda. See Note 16, "Guarantor Financial Information," for condensed comparative financial information of XL-Bermuda and XL-Cayman for the periods ended March 31, 2017 and December 31, 2016.

The ability of XL-Cayman, like that of the Company, to obtain funds from its subsidiaries to satisfy any of its obligations, including under guarantees, is subject to certain contractual restrictions, applicable laws and statutory requirements of the various countries in which the subsidiaries operate, including, among others, Bermuda, the United States, Ireland, Switzerland and the United Kingdom. For details of the required statutory capital and surplus for the principal operating subsidiaries of the Company, see Item 8, Note 24, "Statutory Financial Data," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

As a result of the Allied Acquisition described in Note 2(d), "Acquisitions and Disposals - Allied Acquisition," the Company assumed, and subsequently redeemed on June 15, 2016, $8.2 million of trust preferred securities, due in 2035 and bearing a floating interest rate, adjustable quarterly, at three-month LIBOR plus 3.75%.

XL-Cayman and the Company were in compliance with all covenants at March 31, 2017, and XL-Cayman and the Company currently remain in compliance with all covenants.

(b) Letter of Credit Facilities and Other Sources of Collateral

The Company has letter of credit facilities provided on both syndicated and bilateral bases from commercial banks. These facilities are utilized primarily to support non-admitted insurance and reinsurance operations in the U.S. and capital requirements at Lloyd’s.

The Company’s letter of credit facilities and revolving credit facilities at March 31, 2017 and December 31, 2016 were as follows:



Letter of Credit Summary: (U.S. dollars in thousands)	March 31, 2017 (1)			December 31, 2016 (1)
Available letter of credit facilities - commitments	$	4,020,991		$	3,991,687
Available letter of credit facilities - in use (2)	$	2,430,003		$	2,345,293
Collateralized by certain assets of the Company’s investment portfolio	49.1		%	48.6		%

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(1)	At March 31, 2017 and December 31, 2016, there were fifteen available credit facilities.

(2)

At March 31, 2017 and December 31, 2016, the stated portion of allowable credit facilities permitted to be utilized for revolving loans was $1.0 billion. However, at March 31, 2017 and December 31, 2016, $287.7 million and $245 million, respectively, were utilized under these facilities to issue letters of credit, leaving $712.3 million and $755.0 million, respectively, available either to issue additional letters of credit or to support other operating or financing needs under these particular facilities.

For details regarding the facilities, see Item 8, Note 14(b), "Notes Payable and Debt and Financing Arrangements - Letter of Credit Facilities and Other Sources of Collateral," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.