NOTES TO CONSOLIDATED FINANCIAL STATEMENTS In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Since this indemnity generally is not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the  maximum potential amount due under this indemnity in the future. any of the agreements, including, but not limited to, non-payment of indebtedness when due for amounts greater than $10 million or $25 million depending on the agreement, bankruptcy proceedings, and any other event which results in the acceleration of the  maturity of indebtedness. As of December 31, 2003, the Company had $398.1 million in outstanding borrowings under its debt  agreements and was in compliance with all covenants under those agreements. Of that amount, approximately $48.6 million is subject to immediate payment upon a downgrade of the Company’s senior long-term debt rating, unless a waiver is obtained from the lenders. The ability of the Company to make debt principal and interest  payments depends on the earnings and surplus of subsidiaries, investment earnings on undeployed capital proceeds, and the Company’s ability to raise additional funds. Interest paid on debt and trust preferred securities (See Note 16) during 2003, 2002 and 2001 totaled $35.9 million, $34.7 million and $18.5 million, respectively. On December 19, 2001, RGA issued 6.75% senior notes with  a face value of $200.0 million. These senior notes have been  registered with the SEC. The net proceeds from the offering were approximately $198.5 million and were used to pay down a  balance of $120 million on a revolving credit facility and to prepay and terminate a $75 million term loan with MetLife Credit Corp. Capitalized issuance costs, recorded in other assets, related to  the issuance of the 6.75% senior notes were $1.7 million at December 31, 2003. RGA guarantees the payment of amounts outstanding under the credit facilities maintained by its subsidiary operations in the United Kingdom and Australia. The total amount of debt outstanding, subject to the guarantees, as of December 31, 2003 was $48.6 million and is reflected on the Company’s consolidated balance sheet under long-term debt. These lines of credit provide for  additional borrowings of up to $4.5 million, which if drawn, would also be subject to the guarantees. The Company has revolving credit facilities in the United States, the United Kingdom, and Australia, under which it may borrow up to approximately $228.1 million. As of December 31, 2003, the Company had drawn approximately $98.6 million under these facilities at rates ranging from 1.69% to 5.56%. The Company increased its borrowings under the United States, the United Kingdom, and the Australia credit facility during 2003 by $50.0 million, $7.1 million, and $7.5 million, respectively. Terminations of revolving credit facil- ities and maturities of senior notes over the next five years would be $48.6 million in 2005 and $150.0 million in 2006. The Company may draw up to $175.0 million on its U.S. revolving credit facility that expires in May 2006. As of December 31, 2003, the Company had $50.0 million outstanding under this facility. Certain of the Company’s debt agreements contain financial covenant restrictions related to, among others, liens, the issuance and disposition of stock of restricted subsidiaries, minimum requirements of consolidated net worth ranging from $600 million to $700 million, and minimum rating requirements. A material ongoing covenant default could require immediate payment of the amount due, including principal, under the various agreements. Additionally, the Company’s debt agreements contain cross-default covenants, which would make outstanding borrowings immediately payable in the event of a material uncured covenant default under 2) A warrant to purchase, at any time prior to December 15, 2050, 1.2508 shares of RGA stock at an exercise price of $50. The fair market value of the warrant on the issuance date is $14.87 and is detachable from the preferred security. 1) A preferred security issued by RGA Capital Trust I (the Trust), having a stated liquidation amount of $50 per unit, representing  an undivided beneficial ownership interest in the assets of the Trust, which consist solely of junior subordinated debentures issued by RGA which have a principal amount at maturity of $50 and a  stated maturity of March 18, 2051. The preferred securities and subordinated debentures were issued at a discount (original issue discount) to the face or liquidation value of $14.87 per security. The securities will accrete to their $50 face/liquidation value over the life of the security on a level yield basis. The interest rate on the preferred securities and the subordinated debentures is 5.75% per annum of the face amount. Each PIERS unit consists of: In December 2001, RGA, through its wholly-owned trust (“RGA Capital Trust I” or “the Trust”) issued $225.0 million in Preferred Income Equity Redeemable Securities (“PIERS”) Units.  NOTE 16 ISSUANCE OF TRUST PIERS UNITS  NOTE 15 LONG-TERM DEBT The Company’s long-term debt consists of the following  (in millions): 2003 2002 Senior notes @ 6.75% due 2011 $199.9 $199.9  Senior notes @ 7.25% due 2006 99.6 99.5 Revolving credit facilities 98.6 28.4 Total $398.1 $327.8 72 THIS IS RGA. 2003 ANNUAL REPORT