STEWART INFORMATION SERVICES CORPSTC
STEWART INFORMATION SERVICES CORP Debt Disclosure
Notes payable and line of credit. A summary of notes payable and line of credit is as follows:
| 2025 | 2024 | ||||||||||
| (in $ thousands) | |||||||||||
3.6% Senior Notes | 446,234 | 445,672 | |||||||||
Line of credit facility (1) | 200,000 | — | |||||||||
| Other notes payable | 372 | 169 | |||||||||
| 646,606 | 445,841 | ||||||||||
(1) Applicable interest rate was 5.4% during the year ended December 31, 2025.
In November 2021, the Company completed an underwritten offering of $450 million aggregate principal amount of unsecured 3.6% Senior Notes due on November 15, 2031 (Senior Notes). The proceeds from the issuance of the Senior Notes, net of underwriting discounts and issuance costs, were $444.0 million, which were used to repay an outstanding balance on a previous term loan and for general corporate purposes. Interest on the Senior Notes is paid semi-annually in May and November at a fixed rate of 3.6% per annum. At any time prior to August 15, 2031, the Senior Notes are subject to redemption, at the Company's option, upon not less than 15 days' notice, in whole or in part, at a redemption price equal to the greater of: 100% of the principal amount of the Senior Notes to be redeemed, or the sum of the present values of the remaining scheduled payments of principal and interest to be redeemed. The Senior Notes are the Company’s general senior unsecured obligations, are not guaranteed by any of the Company’s subsidiaries, rank equally in right of payment with the Company’s existing and future senior unsecured indebtedness, and are effectively subordinated to all liabilities of the Company’s subsidiaries and to all of the Company’s secured indebtedness to the extent of the value of the collateral securing such indebtedness. As of December 31, 2025 and 2024, the fair value of the Senior Notes, based on trade transactions on or near year-end, was $397.6 million and $392.2 million, respectively. These values are considered Level 1 inputs based on the fair value hierarchy discussed in Note 5.
In October 2021, the Company entered into a senior unsecured credit agreement, comprising of a $200.0 million unsecured revolving credit facility (maturing in October 2026). In October 2025, the Company entered into a new senior unsecured credit agreement (the New Credit Agreement) which amended and replaced the previously existing senior unsecured credit agreement. The New Credit Agreement is comprised of a $300.0 million unsecured revolving credit facility, which matures in October 2030 and includes an option to increase the revolving credit facility by up to $125.0 million. The New Credit Agreement is guaranteed by the certain of the Company's wholly-owned subsidiaries. At the Company’s election, borrowings under the New Credit Agreement will bear interest at either (a) the Base Rate plus the Applicable Margin (each as defined in the agreement) or (b) the adjusted Term SOFR (as defined in the agreement) plus the applicable margin. The applicable margin, based on the Company's Debt to Capitalization Ratio (as defined in the agreement), for revolving loans ranges from 0.25% to 0.625% per annum for Base Rate borrowings and 1.25% to 1.625% per annum for Term SOFR borrowings. Further, a commitment fee accrues, based on the Company's debt to capitalization Ratio, ranging from 0.10% to 0.25% per annum on the average daily unused portion of the commitments. The New Credit Agreement also contains certain consolidated financial covenants which, as detailed in the agreement, limit the Company's maximum debt to total capitalization ratio and minimum consolidated net worth.
During December 2025, the Company drew $200.0 million from the revolving line of credit which remained outstanding at the end of 2025. As of December 31, 2025, the remaining balance of the line of credit available for use was $97.5 million, net of an unused $2.5 million letter of credit. The Company was in compliance with all covenants as of December 31, 2025 and 2024 under the New Credit Agreement.
The Company's qualified intermediary in tax-deferred property exchanges pursuant to Section 1031 of the Internal Revenue Code (Section 1031) enters into short-term loan agreements with parties to an exchange in the ordinary course of its business. The outstanding balances pursuant to these loans are presented as part of other notes payable in the above table and are secured by cash that is included in cash and cash equivalents on the Company's consolidated balance sheet. Borrowings and repayments on these short-term loans are reflected as financing activities in the consolidated statements of cash flows.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 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.