The following tables present the average balances outstanding for our various short-term funding sources by quarter for 2013 and 2012, respectively.
(Dollars in millions)
Funding source: Repurchase agreements......................................... Commercial paper ................................................. Prime broker arrangement..................................... Short-term bank loans ........................................... Total.......................................................................
(Dollars in millions)
Funding source: Repurchase agreements......................................... Commercial paper ................................................. Prime broker arrangement..................................... Short-term bank loans ........................................... Total.......................................................................
Average Balance for the Three Months Ended Dec. 31, 2013 Sept. 30, 2013 June 30, 2013 Mar. 31, 2013 $
$
17.2 313.6 238.7 1.3 570.8
$
$
11.2 351.6 145.6 1.8 510.2
$
$
130.3 334.0 93.5 11.8 569.6
$
$
66.2 308.9 105.2 5.1 485.4
Average Balance for the Three Months Ended Dec. 31, 2012 Sept. 30, 2012 June 30, 2012 Mar. 31, 2012 $
$
50.0 307.2 180.0 0.2 537.4
$
$
71.0 278.5 154.7 3.5 507.7
$
$
158.5 238.8 32.1 40.9 470.3
$
$
114.3 201.2 5.8 9.7 331.0
The average funding in the fourth quarter of 2013 increased to $570.8 million, compared with $510.2 million during the third quarter of 2013, due to an increase in average inventory balances in the fourth quarter of 2013. The increased inventory balances relate primarily to our municipal alternative asset management fund which attracted additional capital from outside investors during the second half of 2013. The following tables present the maximum daily funding amount by quarter for 2013 and 2012, respectively.
(Dollars in millions)
Maximum amount of daily funding ......................
(Dollars in millions)
Maximum amount of daily funding ......................
Dec. 31, 2013 $ 735.2
For the Three Months Ended Sept. 30, 2013 June 30, 2013 $ 799.0 $ 779.3
Mar. 31, 2013 $ 677.1
Dec. 31, 2012 $ 619.4
For the Three Months Ended Sept. 30, 2012 June 30, 2012 $ 613.8 $ 666.1
Mar. 31, 2012 $ 486.0
Variable rate senior notes On November 30, 2012, we entered into a note purchase agreement (“Note Purchase Agreement”) under which we issued unsecured variable rate senior notes (“Notes”) in the amount of $125 million. The initial holders of the Notes are certain entities advised by Pacific Investment Management Company LLC (“PIMCO”). The Notes consist of two classes, Class A Notes and Class B Notes, with principal amounts of $50 million and $75 million, respectively. The unpaid principal amount of the Class A Notes and Class B Notes will be due on May 31, 2014 and November 30, 2015, respectively. The proceeds from the Notes were used to repay the outstanding balance under the three-year bank syndicated credit agreement (“Credit Agreement”). The remaining proceeds are used for general corporate purposes. The Note Purchase Agreement includes customary events of default, including failure to pay principal when due or failure to pay interest within five business days of when due, any representation or warranty in the Note Purchase Agreement proving untrue in any material respect when made by us, failure to comply with the covenants in the Note Purchase Agreement, failure to pay or another event of default under other material indebtedness in an amount exceeding $10 million, bankruptcy or insolvency or a change in control. If there is any event of default, the noteholders may exercise customary remedies, including declaring the entire principal and any accrued interest on the Notes to be due and payable.
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