Long-Term Debt

The principal amount (net of unamortized discounts, premiums and debt issuance costs), stated interest rate and maturity date of outstanding debt at December 31, 2017 and 2016 are as follows (dollars in thousands):



	2017		2016
Parent Company Debt:
Senior Notes:
5.50% Senior Notes due October 18, 2023, $750,000 principal	$	742,348	$	741,264
6.625% Senior Notes due October 23, 2043, $250,000 principal	246,673		246,627
Total long-term debt – Parent Company	989,021		987,891

Subsidiary Debt (non-recourse to Parent Company):
Jefferies:
5.125% Senior Notes, due April 13, 2018, $678,300 and $800,000 principal	682,338		817,813
8.5% Senior Notes, due July 15, 2019, $680,800 and $700,000 principal	728,872		778,367
2.375% Euro Medium Term Notes, due May 20, 2020, $594,725 and $529,975 principal	593,334		528,250
6.875% Senior Notes, due April 15, 2021, $750,000 principal	808,157		823,797
2.25% Euro Medium Term Notes, due July 13, 2022, $4,758 and $4,240 principal	4,389		3,848
5.125% Senior Notes, due January 20, 2023, $600,000 principal	615,703		618,355
4.85% Senior Notes, due January 15, 2027, $750,000 principal (1)	736,357		—
6.45% Senior Debentures, due June 8, 2027, $350,000 principal	375,794		377,806
3.875% Convertible Senior Debentures, due November 1, 2029, $324,779 and $345,000 principal	324,779		346,163
6.25% Senior Debentures, due January 15, 2036, $500,000 principal	512,040		512,396
6.50% Senior Notes, due January 20, 2043, $400,000 principal	420,990		421,333
Structured Notes (2) (3)	614,091		255,203
National Beef Reducing Revolver Loan	120,000		—
National Beef Revolving Credit Facility	76,809		—
National Beef Term Loan	—		273,811
54 Madison Term Loans	—		406,028
Foursight Capital Credit Facilities	170,455		97,138
Other	112,654		132,244
Total long-term debt – subsidiaries	6,896,762		6,392,552

Long-term debt	$	7,885,783	$	7,380,443

(1) Amount includes a decrease of $8.1 million at December 31, 2017 associated with an interest rate swap based on its designation as a fair value hedge. See Notes 2 and 5 for further information.

(2) Includes $607.0 million and $248.9 million at fair value at December 31, 2017 and 2016, respectively.

(3) Of the $614.1 million of structured notes at December 31, 2017, $7.1 million matures in 2018, $6.0 million matures in 2019, $25.0 million matures in 2022 and the remaining $576.0 million matures in 2024 or thereafter.

At December 31, 2017, $2.2 billion of consolidated assets (primarily receivables, property and equipment and other assets) are pledged for indebtedness aggregating $484.3 million, principally for National Beef and Foursight Capital subsidiary debt.

The aggregate annual mandatory redemptions of all long-term debt during the five year period ending December 31, 2022 are as follows: 2018 - $1,016.3 million; 2019 - $777.7 million; 2020 - $125.2 million; 2021 - $766.5 million; and 2022 - $232.5 million.

Parent Company Debt

Our senior note indentures contain covenants that restrict our ability to incur more Indebtedness or issue Preferred Stock of Subsidiaries unless, at the time of such incurrence or issuance, the Company meets a specified ratio of Consolidated Debt to Consolidated Tangible Net Worth, limit the ability of the Company and Material Subsidiaries to incur, in certain circumstances, Liens, limit the ability of Material Subsidiaries to incur Funded Debt in certain circumstances, and contain other terms and restrictions all as defined in the senior note indentures. We have the ability to incur substantial additional indebtedness or make distributions to our shareholders and still remain in compliance with these restrictions. If we are unable to meet the specified ratio, we would not be able to issue additional Indebtedness or Preferred Stock, but our inability to meet the applicable ratio would not result in a default under our senior note indentures. The senior note indentures do not restrict the payment of dividends.

Subsidiary Debt

During 2017, $20.2 million of Jefferies 3.875% Convertible Senior Debentures due 2029 (original principal amount of $345.0 million) were called. In November 2017, all of the remaining 3.875% Convertible Senior Debentures were called for optional redemption, with a redemption date of January 5, 2018, at a redemption price equal to 100% of the principal amount of the convertible debentures redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. All of these remaining convertible debentures were redeemed in January 2018.

During the year ended December 31, 2017, Jefferies issued structured notes with a total principal amount of approximately $329.9 million, net of retirements. Structured notes of $607.0 million and $248.9 million at December 31, 2017 and 2016, respectively, contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument-specific credit risk presented in Accumulated other comprehensive income and changes in fair value resulting from non-credit components recognized in Principal transaction revenues.

In January 2018, Jefferies issued 4.15% senior notes with a principal amount of $1.0 billion, due 2030. In January 2017, Jefferies issued 4.85% senior notes with a principal amount of $750.0 million, due 2027.

In June 2017, National Beef entered into a Third Amended and Restated Credit Agreement (the "Debt Agreement"). The Debt Agreement matures in June 2022 and includes a $275.0 million reducing revolver loan and a $275.0 million revolving credit facility. The reducing revolver loan commitment decreases by $13.8 million on each annual anniversary of the Debt Agreement. The Debt Agreement is secured by a first priority lien on substantially all of the assets of National Beef and its subsidiaries and includes customary covenants including a single financial covenant that requires National Beef to maintain a minimum tangible net worth as defined in the Debt Agreement; at December 31, 2017, National Beef was in compliance with the covenants.

At December 31, 2017, National Beef’s outstanding debt under the Debt Agreement consisted of a reducing revolver loan with an outstanding balance of $120.0 million and $80.0 million drawn on the revolving credit facility. The reducing revolver loan and the revolving credit facility bear interest at the Base Rate or the LIBOR Rate (as defined in the Debt Agreement), plus a margin ranging from .75% to 2.75% depending upon certain financial ratios and the rate selected. At December 31, 2017, the interest rate on the outstanding reducing revolver loan was 3.3% and the interest rate on the outstanding revolving credit facility was 3.3%.

Borrowings under the reducing revolver loan and the revolving credit facility are available for National Beef’s working capital requirements, capital expenditures and other general corporate purposes. Unused capacity under the revolving credit facility can also be used to issue letters of credit; letters of credit aggregating $13.9 million were outstanding at December 31, 2017. Amounts available under the revolving credit facility are subject to a borrowing base calculation primarily comprised of receivable and inventory balances; amounts available under the reducing revolver facility are constrained only by the annual reduction in the commitment amount. At December 31, 2017, after deducting outstanding amounts and issued letters of credit, $87.1 million of the unused revolving credit facility and $155.0 million of the reducing revolver commitment was available to National Beef.

54 Madison seeks long-term capital appreciation through real estate development and similar projects. Many of these development projects are funded through long-term debt at the project level. The debt holders do not have recourse to the Leucadia parent company. As discussed further in Note 10, due to the sale of our interest in the general partner of the 54 Madison fund, the 54 Madison fund and its long-term debt was deconsolidated during 2017.

At December 31, 2017, Foursight Capital’s credit facilities consisted of two warehouse credit commitments aggregating $225.0 million, which mature in March 2019 and July 2020. The 2019 credit facility bears interest based on the three-month LIBOR plus a credit spread fixed through its maturity and the 2020 credit facility bears interest based on the one-month LIBOR plus a credit spread fixed through its maturity. As a condition of the 2019 credit facility, Foursight Capital is obligated to maintain cash reserves in an amount equal to the quoted price of an interest rate cap sufficient to meet the hedging requirements of the credit commitment. The credit facilities are secured by first priority liens on auto loan receivables owed to Foursight Capital of approximately $200.5 million at December 31, 2017.