Long-Term Debt
Senior Notes
At December 31, 2025, Kestrel had outstanding publicly-traded senior notes which were issued in 2016 ("2016 Senior Notes") by its now wholly owned subsidiary Maiden and outstanding publicly-traded senior notes which were issued in 2013 ("2013 Senior Notes") by its now wholly owned subsidiary, Maiden Holdings North America, Ltd. ("Maiden NA"). These are collectively referred to as the Company's outstanding senior notes ("Senior Notes"). The Senior Notes are unsecured and unsubordinated obligations of the Company.
On May 27, 2025 in connection with the Combination, (i) Maiden, as issuer, the Company, as guarantor, and Wilmington Trust, National Association, as trustee, entered into a second supplemental indenture (the “Second Supplemental Indenture”) to that certain indenture dated as of June 14, 2016, providing that the Company will fully and unconditionally guarantee Maiden’s 6.625% Senior Notes due 2046 and (ii) Maiden NA, as issuer, the Company, as guarantor, and Wilmington Trust Company, as trustee, entered into a fourth supplemental indenture (together with the Second Supplemental Indenture, the “Supplemental Indentures”) to that certain indenture dated as of June 24, 2011, providing that the Company will fully and unconditionally guarantee MHNA’s 7.75% Senior Notes due 2043.
The following table details the Senior Notes issuances outstanding at December 31, 2025; no Senior Notes are outstanding in 2024 as these were acquired under the Combination on May 27, 2025:
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| December 31, 2025 | | 2016 Senior Notes | | 2013 Senior Notes | | | | Total |
Principal amount | | $ | 110,000 | | | $ | 152,361 | | | | | $ | 262,361 | |
| Less: unamortized fair value adjustment | | 43,627 | | | 44,332 | | | | | 87,959 | |
| Carrying value | | $ | 66,373 | | | $ | 108,029 | | | | | $ | 174,402 | |
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| Original fair value adjustment at acquisition date | | $ | 43,928 | | | $ | 44,764 | | | | | |
| Maturity date | | June 14, 2046 | | December 1, 2043 | | | | |
| Earliest redeemable date (for cash) | | June 14, 2021 | | December 1, 2018 | | | | |
| Coupon rate | | 6.625 | % | | 7.75 | % | | | | |
| Effective interest rate | | 11.8 | % | | 11.6 | % | | | | |
Total interest and amortization expense incurred on the Senior Notes for the year ended December 31, 2025 was $12,071, of which $1,342 was accrued as interest payable at both December 31, 2025. Under the Combination, the Senior Notes were acquired at their respective fair market values on May 27, 2025, therefore the difference between the principal amount of the acquired debt and the fair market value of the acquired debt is being amortized over the remaining life of the Senior Notes up to par value. The amortization for the fair value adjustment was $733 for the year ended December 31, 2025.
Under the terms of the 2013 Senior Notes, the 2013 Senior Notes can be redeemed, in whole or in part, at Maiden NA's option at any time and from time to time, until maturity at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued but unpaid interest on the principal amount being redeemed to, but not including, the redemption date. Maiden NA is required to give at least thirty days and not more than sixty days' notice prior to the redemption date. Please refer to Note 11. Commitments, Contingencies and Guarantees for ongoing litigation regarding the 2013 Senior Notes.
Under the terms of the 2016 Senior Notes, the 2016 Senior Notes can be redeemed, in whole or in part, at Maiden Holdings' option at any time and from time to time, until maturity at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued but unpaid interest on the principal amount being redeemed to, but not including, the redemption date. Maiden Holdings is required to give at least thirty days and not more than sixty days notice prior to the redemption date.