HORACE MANN EDUCATORS CORP /DE/HMN
HORACE MANN EDUCATORS CORP /DE/ Debt Disclosure
NOTE 10 - Debt
Indebtedness and scheduled maturities consisted of the following:
| ($ in millions) | Interest Rates | Final Maturity | December 31, | |||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| Short-term debt | ||||||||||||||||||||||||||
| Revolving Credit Facility | Variable | 2030 | $ | — | $ | — | ||||||||||||||||||||
Long-term debt(1) | ||||||||||||||||||||||||||
4.70% 2025 Senior Notes, Aggregate principal amount of $300.0 less unaccrued discount of $1.5 and $0.0 and unamortized debt issuance costs of $3.1 and $0.0 | 4.70% | 2030 | 295.4 | — | ||||||||||||||||||||||
7.25% 2023 Senior Notes, Aggregate principal amount of $300.0 less unaccrued discount of $0.3 and $0.4 and unamortized debt issuance costs of $1.7 and $2.3 | 7.25% | 2028 | 298.0 | 297.3 | ||||||||||||||||||||||
4.50% 2015 Senior Notes, Aggregate principal amount of $250.0 less unaccrued discount of $0.0 and $0.1 and unamortized debt issuance costs of $0.0 and $0.2 | 4.50% | 2025 | — | 249.7 | ||||||||||||||||||||||
Total | $ | 593.4 | $ | 547.0 | ||||||||||||||||||||||
(1) The Company designates debt obligations as "long-term" based on maturity date at issuance.
2025 Senior Notes
On September 26, 2025, the Company issued $300.0 million aggregate principal amount of 4.70% senior notes (2025 Senior Notes), which will mature on October 1, 2030, issued at a discount resulting in an effective yield of 4.82%. Interest on the 2025 Senior Notes is payable semi-annually at a rate of 4.70%. The 2025 Senior Notes are redeemable in whole or in part, at any time, at the Company's option, at a redemption price equal to the greater of (1) 100% of the principal amount of the notes being redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted, on a semi-annual basis, at the Treasury yield (as defined in the indenture) plus 20 basis points, plus, in either of the above cases, accrued interest up to, but not including the date of redemption. The 2025 Senior Notes are traded in the open market (HMN 4.70).
The net proceeds from the sale of the 2025 Senior Notes were used to fully repay the $250.0 million balance of the 4.50% 2015 Senior Notes due 2025 and the accrued and unpaid interest of $4.2 million. The redemption occurred on October 14, 2025 with the remaining net proceeds from the sale to be used for general corporate purposes.
2023 Senior Notes
On September 15, 2023, the Company issued $300.0 million aggregate principal amount of 7.25% senior notes (2023 Senior Notes), which will mature on September 15, 2028, issued at a discount resulting in an effective yield of 7.29%. Interest on the 2023 Senior Notes is payable semi-annually at a rate of 7.25%. The 2023 Senior Notes are redeemable in whole or in part, at any time, at the Company's option, at a redemption price equal to the greater of (1) 100% of the principal amount of the notes being redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted, on a semi-annual basis, at the Treasury yield (as defined in the indenture) plus 45 basis points, plus, in either of the above cases, accrued interest to the date of redemption. The 2023 Senior Notes are traded in the open market (HMN 7.25).
Credit Agreement with Financial Institutions (Revolving Credit Facility)
In 2025, the Company, as borrower, amended its Credit Agreement (Revolving Credit Facility). The amended Revolving Credit Facility extended the commitment termination date to May 19, 2030 and replaced the Eurodollar-based interest rate benchmark with a Term SOFR Rate as an interest rate benchmark. Terms and conditions of the amended Revolving Credit Facility are substantially consistent with the prior agreement, with an interest rate based on SOFR plus 115 basis points. The amount available on the senior revolving credit facility is $325.0 million. The unused portion of the Revolving Credit Facility is subject to a variable commitment fee, which was 0.15% on an annual basis as of December 31, 2025. There were no amounts outstanding on the credit agreement as of December 31, 2025 or 2024.
Federal Home Loan Bank Borrowings
As of December 31, 2025, the Company had no borrowing outstanding with FHLB. The Board has authorized a maximum amount equal to 15% of net aggregate admitted assets less separate account assets of the insurance subsidiaries for FHLB borrowing and funding agreements which is below our maximum FHLB borrowing capacity.
Covenants
The Company is in compliance with all of the financial covenants contained in the 2025 Senior Notes indenture, the 2023 Senior Notes indenture and the Revolving Credit Facility agreement, consisting primarily of relationships of (1) debt to capital, (2) net worth, as defined in the financial covenants, (3) insurance subsidiaries' risk-based capital and (4) securities subject to funding agreements and repurchase agreements.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 27, 2024 | |
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.