GLOBE LIFE INC.GL
GLOBE LIFE INC. Debt Disclosure
Note 12—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, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Instrument | Issue Date | Maturity Date | Coupon Rate | Par Value | Unamortized Discount & Issuance Costs | Book Value | Fair Value | Book Value | |||||||||||||||||||||||||||||||||||||||
Senior notes | 09/27/2018 | 09/15/2028 | 4.550% | $ | 550,000 | $ | (2,252) | $ | 547,748 | $ | 555,115 | $ | 546,999 | ||||||||||||||||||||||||||||||||||
Senior notes | 08/21/2020 | 08/15/2030 | 2.150% | 400,000 | (2,396) | 397,604 | 361,852 | 397,132 | |||||||||||||||||||||||||||||||||||||||
Senior notes(1) | 05/19/2022 | 06/15/2032 | 4.800% | 250,000 | (3,308) | 246,692 | 251,923 | 246,272 | |||||||||||||||||||||||||||||||||||||||
Senior notes | 08/23/2024 | 09/15/2034 | 5.850% | 450,000 | (4,782) | 445,218 | 472,792 | 444,814 | |||||||||||||||||||||||||||||||||||||||
| Junior subordinated debentures | 11/17/2017 | 11/17/2057 | 5.275% | 125,000 | (1,539) | 123,461 | 123,290 | 123,443 | |||||||||||||||||||||||||||||||||||||||
| Junior subordinated debentures | 06/14/2021 | 06/15/2061 | 4.250% | 325,000 | (7,528) | 317,472 | 217,750 | 317,387 | |||||||||||||||||||||||||||||||||||||||
Term loan(2) | 05/11/2023 | 08/15/2027 | 5.353% | 250,000 | (1,110) | 248,890 | 248,890 | 248,204 | |||||||||||||||||||||||||||||||||||||||
Subtotal | 2,350,000 | (22,915) | 2,327,085 | 2,231,612 | 2,324,251 | ||||||||||||||||||||||||||||||||||||||||||
Unamortized issuance costs(3) | — | (6,292) | (6,292) | (6,292) | — | ||||||||||||||||||||||||||||||||||||||||||
Total long-term debt | 2,350,000 | (29,207) | 2,320,793 | 2,225,320 | 2,324,251 | ||||||||||||||||||||||||||||||||||||||||||
| Commercial paper | 306,000 | (1,344) | 304,656 | 304,656 | 415,401 | ||||||||||||||||||||||||||||||||||||||||||
Total short-term debt | 306,000 | (1,344) | 304,656 | 304,656 | 415,401 | ||||||||||||||||||||||||||||||||||||||||||
Total debt | $ | 2,656,000 | $ | (30,551) | $ | 2,625,449 | $ | 2,529,976 | $ | 2,739,652 | |||||||||||||||||||||||||||||||||||||
(1)An additional $150 million par value and book value is held by insurance subsidiaries that eliminates in consolidation.
(2)Interest calculated quarterly using Secured Overnight Financing Rate (SOFR) plus 135 basis points. The term loan was amended on August 15, 2024 extending the maturity date from November 11, 2024 to August 15, 2027 and increasing the principal amount from $170 million to $250 million.
(3)Unamortized issuance costs for P-CAPS facility agreement.
The commercial paper has the highest priority of all unsecured debt, followed by senior notes then junior subordinated debentures. The senior notes are callable under a make-whole provision, and the junior subordinated debentures are subject to an optional redemption five years from issuance. Interest on the 4.25% junior subordinated debentures and the term loan are payable quarterly while 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, | |||||||||||||||||||||||||||||||||||
| 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | ||||||||||||||||||||||||||||||
| Debt obligations | $ | 306,000 | $ | 250,000 | $ | 550,000 | $ | — | $ | 400,000 | $ | 1,150,000 | |||||||||||||||||||||||
Credit Facility: Globe Life has in place a credit facility which provides for a $1 billion revolving credit facility that may be increased to $1.25 billion. The credit facility matures March 29, 2029 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 $1 billion, 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, 2025, the Company was in full compliance with these covenants.
Pre-capitalized Trust Securities: On July 1, 2025, the Company entered into a 30-year Facility Agreement with a Delaware trust (the "Trust") following the completion of a private placement of Trust securities for $500 million of Pre-Capitalized Trust Securities ("P-CAPS"), conducted pursuant to Rule 144A under the Securities Act. The Trust invested the proceeds from this offering in a portfolio of U.S. Treasury principal and interest strips ("Treasury securities"). P-CAPS provide the Company with a source of liquidity, the proceeds of which, if drawn, would be used for general corporate purposes.
Under the Facility Agreement, the Company has the right, on one or more occasions, to issue and sell up to $500 million of its 6.580% Senior Notes to the Trust in exchange for a corresponding amount of Treasury securities held by the Trust. In consideration for this right, the Company pays the Trust a semi-annual facility fee at a rate of 1.789% per annum on the unexercised portion of the facility. These fees are recorded in Interest Expense in the Consolidated Statements of Operations. The Company also reimburses the Trust for its administrative expenses. The Issuance Right will be exercised automatically in full upon (i) our failure to pay the facility fee or to purchase any Strips required to be purchased under the Facility, if the failure to pay is not cured within 30 days, or (ii) certain bankruptcy events involving the Company. We are also required to exercise the Issuance Right in full if our consolidated stockholders’ equity (excluding AOCI) falls below $1.85 billion, subject to certain adjustments. As of December 31, 2025, the Company had no senior note issuances under the Facility Agreement.
Commercial Paper: Commercial paper outstanding and any long-term debt due within one year are reported as short-term debt on the Consolidated Balance Sheets. The following tables present selected information concerning Globe Life's commercial paper borrowings.
Credit Facility—Commercial Paper
(Dollar amounts in thousands)
| At December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
Balance commercial paper at end of period (at par value) | $ | 306,000 | $ | 419,000 | |||||||
| Annualized interest rate | 4.05 | % | 5.22 | % | |||||||
| Letters of credit outstanding | $ | 115,000 | $ | 115,000 | |||||||
| Remaining amount available under credit line | 579,000 | 466,000 | |||||||||
Credit Facility—Commercial Paper Activity
(Dollar amounts in thousands)
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Average balance of commercial paper outstanding during period (par value) | $ | 412,705 | $ | 405,573 | $ | 290,024 | |||||||||||
| Daily-weighted average interest rate (annualized) | 4.77 | % | 5.65 | % | 5.40 | % | |||||||||||
Maximum daily amount outstanding during period (par value) | $ | 605,500 | $ | 633,425 | $ | 477,700 | |||||||||||
Commercial paper issued during period (par value) | 2,369,500 | 2,052,056 | 2,029,000 | ||||||||||||||
| Commercial paper matured during period (par value) | (2,482,500) | (1,952,056) | (1,995,000) | ||||||||||||||
Net commercial paper issued (matured) during period (par value) | (113,000) | 100,000 | 34,000 | ||||||||||||||
The Company reduced the commercial paper borrowings by $113 million from the prior year. The Company was able to issue commercial paper as needed under this facility during the year ended December 31, 2025 and 2024.
Federal Home Loan Bank: FHLB membership provides certain of our insurance subsidiaries with access to various low-cost collateralized borrowings and funding agreements. The membership requires ownership of FHLB common stock, as well as the purchase of activity-based common stock equal to approximately 4.1% of outstanding borrowings.
Globe Life owned $32.5 million in FHLB common stock as of December 31, 2025 and $34.5 million as of December 31, 2024. The FHLB stock is restricted from redemption or repurchases for the duration of the membership and recorded at cost (par) as required by applicable guidance. The FHLB stock is included in "Other long-term investments" on the Consolidated Balance Sheets. Borrowings with the FHLB are subject to the availability of pledged assets at the insurance subsidiaries of Globe Life. As of December 31, 2025, Globe Life's insurance subsidiaries' maximum borrowing capacity under the FHLB facility was approximately $730 million, net of outstanding funding agreements and short-term borrowings, on pledged assets with a fair value of $1.4 billion. As of December 31, 2025, $437 million in funding agreements were outstanding with the FHLB, compared to $372 million as of December 31, 2024. This amount is included in "Other policyholders' funds" on the Consolidated Balance Sheets. The Company had no short-term borrowings from the FHLB as of December 31, 2025 and 2024, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 26, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.