Assurant 2011 Annual Report Download - page 116

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ASSURANT, INC.2011 Form10-KF-40
15 Mandatorily Redeemable Preferred Stock
Credit Facility
e Company’s commercial paper program requires the Company
to maintain liquidity facilities either in an available amount equal to
any outstanding notes from the commercial paper program or in an
amount su cient to maintain the ratings assigned to the notes issued
from the commercial paper program.  e Company’s subsidiaries do not
maintain commercial paper or other borrowing facilities at their level.
is program is currently backed up by a $350,000 senior revolving
credit facility, of which $325,704 was available at December31, 2011,
due to outstanding letters of credit.
On September21, 2011, the Company entered into a four-year
unsecured $350,000 revolving credit agreement (“2011 Credit Facility”)
with a syndicate of banks arranged by JP Morgan Chase Bank, N.A.
and Bank of America, N.A.  e 2011 Credit Facility replaced the
Company’s prior three-year $350,000 revolving credit facility (“2009
Credit Facility”), which was entered into on December18, 2009 and
was scheduled to expire in December 2012.  e 2009 Credit Facility
terminated upon the e ective date of the 2011 Credit Facility.  e
2011 Credit Facility provides for revolving loans and the issuance of
multi-bank, syndicated letters of credit and/or letters of credit from a
sole issuing bank in an aggregate amount of $350,000 and is available
until September 2015, provided the Company is in compliance with
all covenants.  e 2011 Credit Facility has a sublimit for letters of
credit issued thereunder of $50,000.  e proceeds of these loans may
be used for the Company’s commercial paper program or for general
corporate purposes.  e Company may increase the total amount
available under the 2011 Credit Facility to $525,000 subject to certain
conditions. No bank is obligated to provide commitments above their
share of the $350,000 facility.
e Company did not use the commercial paper program during the
twelve months ended December31, 2011 and 2010 and there were
no amounts relating to the commercial paper program outstanding at
December31, 2011 and December31, 2010.  e Company made no
borrowings using either the 2009 Credit Facility or the 2011 Credit
Facility and no loans are outstanding at December31, 2011.  e
Company had $24,296 of letters of credit outstanding under the 2011
Credit Facility as of December31, 2011.
e 2011 Credit Facility contains restrictive covenants and requires
that the Company maintain certain speci ed minimum ratios and
thresholds. Among others, these covenants include maintaining a
maximum debt to capitalization ratio and a minimum consolidated
adjusted net worth. At December31, 2011, the Company was in
compliance with all covenants, minimum ratios and thresholds.
15. Mandatorily Redeemable Preferred Stock
e Company’s Board of Directors has the authority to issue up to
200,000,000 shares of preferred stock, par value $1.00 per share,
in one or more series and to  x the powers, preferences, rights and
quali cations, limitations or restrictions thereof, which may include
dividend rights, conversion rights, voting rights, terms of redemption,
liquidation preferences and the number of shares constituting any
series or the designations of the series.  e carrying value equals the
redemption value for all classes of preferred stock.
Series B Preferred Stock
ere are 19,160 (par value $1.00 per share) designated Series B preferred stock shares.  ere are no outstanding shares as of December31,
2011. Changes in the number of Series B shares issued and outstanding for the years ended December31, 2011, 2010 and 2009 are as follows:
For the Years Ended December31,
2011 2010 2009
Shares outstanding, beginning — 3,160 6,160
Shares redeemed — (3,160) (3,000)
SHARES OUTSTANDING, ENDING 3,160
Series C Preferred Stock
ere are 5,000 (par value $1.00 per share) designated Series C preferred stock shares.  ere are no outstanding shares as of December31,
2011. Changes in the number of Series C shares issued and outstanding for the years ended December31, 2011, 2010 and 2009 are as follows:
For the Years Ended December31,
2011 2010 2009
Shares outstanding, beginning 5,000 5,000 5,000
Shares redeemed (5,000) — —
SHARES OUTSTANDING, ENDING 5,000 5,000