Maiden Holdings, Ltd.MHLA

Maiden Holdings, Ltd. Debt Disclosure

10-KFiled Mar 15, 20232 min read
Long-Term Debt
Senior Notes
At December 31, 2022 and 2021, Maiden Holdings had outstanding publicly-traded senior notes which were issued in 2016 ("2016 Senior Notes") and its wholly owned subsidiary, Maiden Holdings North America, Ltd. ("Maiden NA") had outstanding publicly-traded senior notes which were issued in 2013 ("2013 Senior Notes"(collectively "Senior Notes"). The 2013 Senior Notes issued by Maiden NA are fully and unconditionally guaranteed by Maiden Holdings. The Senior Notes are unsecured and unsubordinated obligations of the Company.
The following tables detail the issuances outstanding at December 31, 2022 and 2021:
December 31, 20222016 Senior Notes2013 Senior NotesTotal
Principal amount
$110,000 $152,500 $262,500 
Less: unamortized issuance costs3,406 3,522 6,928 
Carrying value$106,594 $148,978 $255,572 
December 31, 20212016 Senior Notes2013 Senior NotesTotal
Principal amount
$110,000 $152,500 $262,500 
Less: unamortized issuance costs3,463 3,690 7,153 
Carrying value$106,537 $148,810 $255,347 
Other details:
Original debt issuance costs$3,715 $5,054 
Maturity dateJune 14, 2046December 1, 2043
Earliest redeemable date (for cash)June 14, 2021December 1, 2018
Coupon rate6.625 %7.75 %
Effective interest rate7.07 %8.04 %
The interest expense incurred on the Senior Notes for the year ended December 31, 2022 was $19,106 (2021 - $19,106), of which $1,342 was accrued at both December 31, 2022 and 2021, respectively. The issuance costs related to the Senior Notes were capitalized and are being amortized over the effective life of the Senior Notes. The amortization expense was $225 for the year ended December 31, 2022 (2021 - $221).
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.
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.

Historical Timeline

Fiscal YearFiled
2022Mar 15, 2023Showing above
2020Mar 15, 2021
2019Mar 18, 2020
2017Mar 1, 2018
2016Mar 6, 2017
2015Mar 1, 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.

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